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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue Recognition [Abstract]  
Revenue Recognition

9. Revenue Recognition

Disaggregation of Revenues

The following table disaggregates our product revenue, net by product and geographic region and disaggregates our other revenues by geographic region (in thousands):

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

Product revenue, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HEPLISAV-B

 

$

22,707

 

 

$

-

 

 

$

22,707

 

 

$

11,599

 

 

$

-

 

 

$

11,599

 

CpG 1018

 

 

-

 

 

 

84,289

 

 

 

84,289

 

 

 

-

 

 

 

1,677

 

 

 

1,677

 

Total product revenue, net

 

$

22,707

 

 

$

84,289

 

 

$

106,996

 

 

$

11,599

 

 

$

1,677

 

 

$

13,276

 

Other revenue

 

 

1,200

 

 

 

74

 

 

 

1,274

 

 

 

-

 

 

 

138

 

 

 

138

 

Total revenues

 

$

23,907

 

 

$

84,363

 

 

$

108,270

 

 

$

11,599

 

 

$

1,815

 

 

$

13,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

Product revenue, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HEPLISAV-B

 

$

44,698

 

 

$

-

 

 

$

44,698

 

 

$

24,518

 

 

$

-

 

 

$

24,518

 

CpG 1018

 

 

-

 

 

 

197,860

 

 

 

197,860

 

 

 

-

 

 

 

1,677

 

 

 

1,677

 

Total product revenue, net

 

$

44,698

 

 

$

197,860

 

 

$

242,558

 

 

$

24,518

 

 

$

1,677

 

 

$

26,195

 

Other revenue

 

 

1,460

 

 

 

354

 

 

 

1,814

 

 

 

-

 

 

 

806

 

 

 

806

 

Total revenues

 

$

46,158

 

 

$

198,214

 

 

$

244,372

 

 

$

24,518

 

 

$

2,483

 

 

$

27,001

 

 

 

Revenues from Major Customers

The following table summarizes HEPLISAV-B product revenue from each of our three largest Customers (as a percentage of total HEPLISAV-B product revenue):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Largest Customer

 

 

22

%

 

 

28

%

 

 

21

%

 

 

25

%

Second largest Customer

 

 

20

%

 

 

25

%

 

 

21

%

 

 

22

%

Third largest Customer

 

 

19

%

 

 

17

%

 

 

18

%

 

 

21

%

The following table summarizes CpG 1018 product revenue from each of our two largest collaboration partners (as a percentage of total CpG 1018 product revenue):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Largest collaboration partner

 

 

62

%

 

 

71

%

 

 

45

%

 

 

71

%

Second largest collaboration partner

 

 

30

%

 

 

25

%

 

 

29

%

 

 

25

%

Contract Balances

The following table summarizes balances and activities in HEPLISAV-B product revenue allowance and reserve categories for the nine months ended September 30, 2021 (in thousands):

 

 

 

Balance at
Beginning
of Period

 

 

Provisions
related to
current
period sales

 

 

Credit or
payments
made during
the period

 

 

Balance
at End of
Period

 

Nine months ended September 30, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable reserves(1)

 

$

2,836

 

 

$

13,549

 

 

$

(12,369

)

 

$

4,016

 

Revenue reserve accruals(2)

 

$

6,040

 

 

$

8,962

 

 

$

(6,653

)

 

$

8,349

 

 

(1)
Reserves are for chargebacks, discounts and other fees.
(2)
Accruals are for returns, rebates and other fees.

When we transfer control of CpG 1018 adjuvant that is reserved under the CEPI Agreement to Clover, we recognize product revenue and a corresponding contract asset as our right to consideration is conditioned on something other than the passage of time. See Note 6 for further discussion.

Payments received or invoices issued before we satisfy our performance obligations are recorded as deferred revenue until we satisfy such performance obligations. Our deferred revenue activities are related to CpG 1018 product sales. The following table summarizes balances and activities in our deferred revenue accounts for the nine months ended September 30, 2021 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at
Beginning
of Period

 

 

Additions (1)

 

 

Subtractions (2)

 

 

Revenue recognized in the current period included in deferred revenue balance at the beginning of the period

 

 

Balance
at End of
Period

 

Nine months ended September 30, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred revenue

 

$

38,212

 

 

$

371,860

 

 

$

(13,272

)

 

$

(38,212

)

 

$

358,588

 

Long-term deferred revenue

 

 

-

 

 

 

129,420

 

 

 

(61,451

)

 

 

-

 

 

 

67,969

 

 

(1)
Additions are primarily payments received or invoices issued before we satisfy our performance obligations.
Subtractions are primarily revenues recognized in the period included in deferred revenue during the period and reclassification from long-term deferred revenue to accrued liabilities.