Collaboration and Licensing Revenue

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company's collaborations and licensing agreements provide for multiple promises to be satisfied by the Company and typically include a license to the Company's technology platforms, participation in collaboration committees, and performance of certain research and development services. Based on the nature of the promises in the Company's collaboration and licensing agreements, the Company typically combines most of its promises into a single performance obligation because the promises are highly interrelated and not individually distinct. At contract inception, the transaction price is typically the upfront payment received and is allocated to the single performance obligation. The Company has determined the transaction price should be

recognized as revenue based on its measure of progress under the agreement primarily based on inputs necessary to fulfill the performance obligation.

The Company recognizes the reimbursement payments received for research and development services in the period when the services are performed. At the inception of each collaboration, the Company determines whether any milestone payments are probable and can be included in the transaction price. The milestone payments are typically not considered probable at inception and are therefore constrained. Royalties related to product sales will be recognized when sales have occurred since the royalties relate directly to the technology license granted in the agreement.

The Company determines whether collaborations and licensing agreements are individually significant for disclosure based on a number of factors, including total revenue recorded by the Company pursuant to collaboration and licensing agreements, collaborators or licensees with either majority-owned subsidiaries or equity method investments, or other qualitative factors. Collaboration and licensing revenues generated from consolidated subsidiaries are eliminated in consolidation.

The following table summarizes the amounts recorded as revenue in the consolidated statements of operations for each significant counterparty to a collaboration or licensing agreement for the three and nine months ended September 30, 2019 and 2018.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
ZIOPHARM Oncology, Inc.	$	431	$	4,826	$	2,130	$	13,626
Ares Trading S.A.	—		1,576		—		7,525
Oragenics, Inc.	231		705		615		867
Intrexon T1D Partners, LLC	—		368		—		2,399
Intrexon Energy Partners, LLC	823		1,329		2,596		3,345
Intrexon Energy Partners II, LLC	293		754		1,217		1,685
Surterra Holdings, Inc.	1,022		—		1,182		—
Genopaver, LLC	494		689		1,186		3,076
Fibrocell Science, Inc.	402		391		3,247		1,015
Persea Bio, LLC	1,083		199		621		714
Harvest start-up entities (1)	100		2,691		4,862		11,792
Other	1,306		796		3,596		5,578
Total	$	6,185	$	14,324	$	21,252	$	51,622


(1)	For the three and nine months ended September 30, 2019 and 2018, revenues recognized from collaborations with Harvest start-up entities include: Thrive Agrobiotics, Inc.; Exotech Bio, Inc.; and AD Skincare, Inc. For the nine months ended September 30, 2018, revenues recognized from collaborations with Harvest start-up entities also include Genten Therapeutics, Inc. and CRS Bio, Inc.

Except for the agreements discussed below, there have been no significant changes to the agreements with our collaborators and licensees in the nine months ended September 30, 2019.

Surterra Collaboration

In June 2019, the Company entered into an Exclusive Product Collaboration agreement ("Surterra EPC") with Surterra Holdings, Inc. ("Surterra") to advance Surterra's cannabinoid production at a reliable, efficient, cost-effective, and industrial scale utilizing the Company's yeast fermentation platform. Under the Surterra EPC, Surterra is responsible for the commercialization of products, including securing any regulatory approvals. Upon execution of the Surterra EPC, the Company received a technology access fee in the form of a $10,000 cash payment and common stock of Surterra valued at $4,530 as upfront consideration. The Company is entitled to developmental milestones for each target selected by Surterra up to a maximum of $68,000 for the achievement of all milestones for all targets as defined in the agreement. The Company is entitled to payments for research and development services provided pursuant to the agreement as well as single-digit royalties on quarterly gross sales of products developed. The Company's performance obligations terminate upon the acceptance of all deliverables for each target selected under the agreement, and the agreement may be terminated by either party in the event of a

material breach as defined in the agreement or may be terminated voluntarily by Surterra upon 90 days written notice to the Company.

Fibrocell Science Collaboration

In April 2019, Fibrocell Science, Inc. ("Fibrocell"), a publicly traded cell and gene therapy company focused on disease affecting the skin and connective tissue and a related party, entered into a collaboration agreement with a third party to develop and commercialize a product in the field of the Company's ECC with Fibrocell ("Fibrocell ECC"). Pursuant to the terms of the Fibrocell ECC, the Company is entitled to 50% of sublicensing fees and received $3,750 during the nine months ended September 30, 2019.

Deferred Revenue

Deferred revenue primarily consists of consideration received for the Company's collaboration and licensing agreements. Deferred revenue consists of the following:



	September 30, 2019		December 31, 2018
Collaboration and licensing agreements	$	74,431	$	63,284
Prepaid product and service revenues	3,054		2,933
Other	1,639		3,547
Total	$	79,124	$	69,764
Current portion of deferred revenue	$	12,764	$	15,554
Long-term portion of deferred revenue	66,360		54,210
Total	$	79,124	$	69,764

The following table summarizes the remaining balance of deferred revenue associated with upfront and milestone payments for each significant counterparty to a collaboration or licensing agreement as of September 30, 2019 and December 31, 2018, including the estimated remaining performance period as of September 30, 2019.



	Average Remaining Performance Period (Years)	September 30, 2019		December 31, 2018
ZIOPHARM Oncology, Inc.	0.0	$	—	$	1,214
Oragenics, Inc.	4.7	5,463		5,810
Intrexon Energy Partners, LLC	4.5	8,362		10,267
Intrexon Energy Partners II, LLC	5.2	12,843		14,060
Surterra Holdings, Inc.	8.7	13,987		—
Genopaver, LLC	4.5	789		1,175
Fibrocell Science, Inc.	5.1	18,102		17,519
Persea Bio, LLC	5.3	3,553		2,697
Harvest start-up entities (1)	5.4	6,993		7,644
Other	1.7	4,297		2,898
Total		$	74,389	$	63,284

(1)

As of September 30, 2019 and December 31, 2018, the balance of deferred revenue for collaborations with Harvest start-up entities includes: Thrive Agrobiotics, Inc.; Exotech Bio, Inc.; and AD Skincare, Inc.