Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.1
Revenue
3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue

Note 13. Revenue

We evaluate financial performance and make resource allocation decisions based upon the results of our single operating and reportable segment; however, we believe presenting revenue split between our primary revenue streams of products and services best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors.

We generally produce and sell finished products, for which we recognize revenue upon shipment. Due to the highly specialized nature of our products, returns are infrequent, and therefore we do not estimate amounts for sales returns and allowances. There are no forms of variable consideration such as discounts, rebates, or volume discounts that we estimate to reduce our transaction price.

We defer certain contract fulfillment costs. These costs are amortized to cost of revenue on a per-pound basis as we sell the related product. During the three months ended March 31, 2022 and 2021, we charged $0.2 million and $0.2 million, respectively, of fulfillment costs to cost of revenue. At March 31, 2022 and December 31, 2021 we had recorded gross contract assets of $2.6 million and $1.4 million, respectively, related to these fulfillment costs.

Our R&D services contract customers generally pay us at the commencement of the agreement and then at additional intervals as outlined in each contract. We recognize contract liabilities for such payments and then recognize revenue as we satisfy the related performance obligations. To the extent collectible revenue recognized under this method exceeds the consideration received, we recognize contract assets for such unbilled consideration.

The following table shows the significant changes in the R&D contract asset and contract liability balances.

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

(in thousands)

 

Contract Assets

 

 

Contract Liabilities

 

 

Contract Assets

 

 

Contract Liabilities

 

Beginning balance

 

$

2,128

 

 

$

(214

)

 

$

-

 

 

$

(2,115

)

Revenue recognized

 

 

772

 

 

 

582

 

 

 

2,128

 

 

 

4,157

 

Unearned consideration received

 

 

-

 

 

 

(368

)

 

 

-

 

 

 

(2,256

)

Ending balance

 

$

2,900

 

 

$

(0

)

 

$

2,128

 

 

$

(214

)

Disaggregated Revenues

Revenue by geographic areas is based on the location of the customer. The following is a summary of revenue information by major geographic area:

 

 

Three Months Ended March 31,

 

(in thousands)

 

2022

 

 

2021

 

Domestic

 

$

10,828

 

 

$

10,887

 

Germany

 

 

2,689

 

 

 

1,255

 

Belgium

 

 

528

 

 

 

-

 

Switzerland

 

 

301

 

 

 

800

 

All other countries

 

 

397

 

 

 

239

 

Total revenues

 

$

14,743

 

 

$

13,181