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Revenue Recognition
 3 Months Ended
Mar. 31, 2022
Revenue Recognition [Abstract]  
Revenue Recognition . 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

 

 

 

March 31, 2022

 

 

March 31, 2021

 

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

Product revenue, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HEPLISAV-B

 

$

20,810

 

 

$

-

 

 

$

20,810

 

 

$

8,303

 

 

$

-

 

 

$

8,303

 

CpG 1018

 

 

-

 

 

 

91,517

 

 

 

91,517

 

 

 

-

 

 

 

74,582

 

 

 

74,582

 

Total product revenue, net

 

$

20,810

 

 

$

91,517

 

 

$

112,327

 

 

$

8,303

 

 

$

74,582

 

 

$

82,885

 

Other revenue

 

 

1,606

 

 

 

59

 

 

 

1,665

 

 

 

-

 

 

 

450

 

 

 

450

 

Total revenues

 

$

22,416

 

 

$

91,576

 

 

$

113,992

 

 

$

8,303

 

 

$

75,032

 

 

$

83,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from Major Customers and Collaboration Partners

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

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2022

 

 

2021

 

 

Largest Customer

 

 

25

%

 

 

28

%

 

Second largest Customer

 

 

20

%

 

 

26

%

 

Third largest Customer

 

 

16

%

 

 

21

%

 

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

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2022

 

 

2021

 

 

Largest collaboration partner

 

 

74

%

 

 

87

%

 

Second largest collaboration partner

 

 

24

%

 

 

9

%

 

Third largest collaboration partner

 

 

2

%

 

 

2

%

 

Contract Balances

The following table summarizes balances and activities in HEPLISAV-B product revenue allowance and reserve categories for the three months ended March 31, 2022 (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

 

Three months ended March 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable reserves(1)

 

$

3,823

 

 

$

5,807

 

 

$

(4,698

)

 

$

4,932

 

Revenue reserve accruals(2)

 

 

8,253

 

 

 

4,273

 

 

 

(4,893

)

 

 

7,633

 

 

(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, as amended, 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. The following table summarizes balances and activities in our contract asset account (in thousands):

 

 

 

Balance at
Beginning
of Period

 

 

Additions (1)

 

 

Subtractions

 

 

Balance
at End of
Period

 

Three months ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Contract asset

 

$

62,525

 

 

$

8,817

 

 

$

-

 

 

$

71,342

 

(1) Additions are revenues recognized for CpG 1018 adjuvant transferred to Clover that is reserved under the CEPI Agreement, as amended.

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 adjuvant product sales. The following table summarizes balances and activities in our deferred revenue accounts for the three months ended March 31, 2022 (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

 

Three months ended March 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred revenue

 

$

349,864

 

 

$

368

 

 

$

-

 

 

$

(37,029

)

 

$

313,203

 

Long-term deferred revenue

 

 

5,385

 

 

 

6,582

 

 

 

(11,967

)

 

 

-

 

 

 

-

 

 

(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.