Quarterly report pursuant to Section 13 or 15(d)

Segment, Geographical and Other Revenue Information

v3.22.2
Segment, Geographical and Other Revenue Information
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment, Geographical and Other Revenue Information Segment, Geographical and Other Revenue Information
Segment Information
We manage our business as two business segments: Performance Enzymes and Novel Biotherapeutics. Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business segments are primarily based on our organizational structure and our operating results as used by our CODM in assessing performance and allocating resources for the Company.
We report corporate-related expenses such as legal, accounting, information technology, and other costs that are not otherwise included in our reportable business segments as "Corporate costs." All items not included in income (loss) from operations are excluded from the business segments.
We manage our assets on a total company basis, not by business segment, as the majority of our operating assets are shared or commingled. Our CODM does not review asset information by business segment in assessing performance or allocating resources, and accordingly, we do not report asset information by business segment. All of our long lived assets are located in the United States.
Factors considered in determining the two reportable segments of the Company include the nature of business activities, the management structure directly accountable to our CODM for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors. Our CODM regularly reviews our segments and the approach provided by management for performance evaluation and resource allocation.
Operating expenses that directly support the segment activity are allocated based on segment headcount, revenue contribution or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments. This provides the CODM with more meaningful segment profitability reporting to support operating decisions and allocate resources.
The following table provides financial information by our reportable business segments along with a reconciliation to consolidated loss before income taxes (in thousands):
Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Revenues:
Product revenue $ 34,645  $ —  $ 34,645  $ 14,717  $ —  $ 14,717 
Research and development revenue 1,885  1,876  3,761  6,868  3,868  10,736 
Total revenues 36,530  1,876  38,406  21,585  3,868  25,453 
Costs and operating expenses:
Cost of product revenue 11,270  —  11,270  4,318  —  4,318 
Research and development(1)
6,929  11,078  18,007  5,057  7,194  12,251 
Selling, general and administrative(1)
3,876  680  4,556  3,170  620  3,790 
Total segment costs and operating expenses 22,075  11,758  33,833  12,545  7,814  20,359 
Income (loss) from operations $ 14,455  $ (9,882) 4,573  $ 9,040  $ (3,946) 5,094 
Corporate costs (2)
(5,789) (8,610)
Unallocated depreciation and amortization (1,316) (741)
Loss before income taxes $ (2,532) $ (4,257)
Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Revenues:
Product revenue $ 65,335  $ —  $ 65,335  $ 24,943  $ —  $ 24,943 
Research and development revenue 4,294  4,117  8,411  10,872  7,670  18,542 
Total revenues 69,629  4,117  73,746  35,815  7,670  43,485 
Costs and operating expenses:
Cost of product revenue 19,791  —  19,791  8,536  —  8,536 
Research and development(1)
13,051  23,424  36,475  11,502  11,799  23,301 
Selling, general and administrative(1)
7,416  1,400  8,816  5,988  1,221  7,209 
Total segment costs and operating expenses 40,258  24,824  65,082  26,026  13,020  39,046 
Income (loss) from operations $ 29,371  $ (20,707) 8,664  $ 9,789  $ (5,350) 4,439 
Corporate costs (2)
(16,994) (16,335)
Unallocated depreciation and amortization (2,549) (1,426)
Loss before income taxes $ (10,879) $ (13,322)
(1) Research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Corporate costs include unallocated selling, general and administrative expenses, interest income, and other income (expense), net.
The following table provides stock-based compensation expense included in income (loss) from operations (in thousands):
Three Months Ended June 30,
2022 2021
Performance Enzymes Novel Biotherapeutics Corporate cost Total Performance Enzymes Novel Biotherapeutics Corporate cost Total
Stock-based compensation $ 1,283  $ 358  $ 1,590  $ 3,231  $ 1,115  $ 257  $ 1,472  $ 2,844 
Six Months Ended June 30,
2022 2021
Performance Enzymes Novel Biotherapeutics Corporate cost Total Performance Enzymes Novel Biotherapeutics Corporate cost Total
Stock-based compensation $ 2,770  $ 768  $ 3,531  $ 7,069  $ 2,109  $ 495  $ 2,927  $ 5,531 
Significant Customers
Customers that each accounted for 10% or more of our total revenues were as follows:
Percentage of Total Revenues for the
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Customer A 62  % 15  % 62  % 10  %
Customer B * 12  % * 13  %
Customer C * 12  % * *
Customer D * * * 17  %
Customer E * * * 10  %
* Percentage was less than 10%
Customers that each accounted for 10% or more of accounts receivable balances as of the periods presented as follows:
Percentage of Accounts Receivables as of
June 30, 2022 December 31, 2021
Customer A 67  % 62  %
Geographical Information
Geographic revenues are identified by the location of the customer and consist of the following (in thousands):
  Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Revenues
Americas $ 3,614  $ 5,844  $ 7,347  $ 10,773 
EMEA 4,690  6,169  8,817  12,450 
APAC 30,102  13,440  57,582  20,262 
Total revenues $ 38,406  $ 25,453  $ 73,746  $ 43,485 
Identifiable long-lived assets by location was as follows (in thousands):
June 30, 2022 December 31, 2021
United States $ 65,400  $ 65,457 
Identifiable goodwill by reporting unit was as follows (in thousands):
As of June 30, 2022 and December 31, 2021
Performance Enzymes Novel Biotherapeutics Total
Goodwill $ 2,463  $ 778  $ 3,241