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Revenue Recognition | 9 Months Ended
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Sep. 30, 2023
Revenue Recognition [Abstract] |
Revenue Recognition | 8. 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, 2023 |  |  | September 30, 2022 |
|  | U.S. |  |  | Non U.S. |  |  | Total |  |  | U.S. |  |  | Non U.S. |  |  | Total |
Product revenue, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HEPLISAV-B |  | $ | 62,318 |  |  | $ | - |  |  | $ | 62,318 |  |  | $ | 37,508 |  |  | $ | - |  |  | $ | 37,508 |
CpG 1018 adjuvant |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 126,307 |  |  |  | 126,307 |
Total product revenue, net |  | $ | 62,318 |  |  | $ | - |  |  | $ | 62,318 |  |  | $ | 37,508 |  |  | $ | 126,307 |  |  | $ | 163,815 |
Other revenue |  |  | 7,196 |  |  |  | - |  |  |  | 7,196 |  |  |  | 3,877 |  |  |  | 43 |  |  |  | 3,920 |
Total revenues |  | $ | 69,514 |  |  | $ | - |  |  | $ | 69,514 |  |  | $ | 41,385 |  |  | $ | 126,350 |  |  | $ | 167,735 |
|  | Nine Months Ended |  |  | Nine Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |
|  | U.S. |  |  | Non U.S. |  |  | Total |  |  | U.S. |  |  | Non U.S. |  |  | Total |
Product revenue, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HEPLISAV-B |  | $ | 162,209 |  |  | $ | - |  |  | $ | 162,209 |  |  | $ | 90,057 |  |  | $ | 941 |  |  | $ | 90,998 |
CpG 1018 adjuvant |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 440,464 |  |  |  | 440,464 |
Total product revenue, net |  | $ | 162,209 |  |  | $ | - |  |  | $ | 162,209 |  |  | $ | 90,057 |  |  | $ | 441,405 |  |  | $ | 531,462 |
Other revenue |  |  | 14,479 |  |  |  | - |  |  |  | 14,479 |  |  |  | 6,566 |  |  |  | 163 |  |  |  | 6,729 |
Total revenues |  | $ | 176,688 |  |  | $ | - |  |  | $ | 176,688 |  |  | $ | 96,623 |  |  | $ | 441,568 |  |  | $ | 538,191 |
Revenues from Major Customers and Collaboration Partners All of our HEPLISAV-B sales in the U.S. are to certain wholesalers and specialty distributors whose principal customers include independent hospitals and clinics, integrated delivery networks, public health clinics and prisons, the Department of Defense, the Department of Veterans Affairs and retail pharmacies. All of our HEPLISAV-B sales in Germany are to one distributor. 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 |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Largest customer |  |  | 27 | % |  |  | 23 | % |  |  | 25 | % |  |  | 20 | %
Second largest customer |  |  | 25 | % |  |  | 19 | % |  |  | 24 | % |  |  | 18 | %
Third largest customer |  |  | 18 | % |  |  | 18 | % |  |  | 17 | % |  |  | 17 | %
The following table summarizes CpG 1018 adjuvant product revenue from each of our three largest collaboration partners (as a percentage of total CpG 1018 adjuvant net product revenue):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Largest collaboration partner |  |  | 0 | % |  |  | 69 | % |  |  | 0 | % |  |  | 46 | %
Second largest collaboration partner |  |  | 0 | % |  |  | 22 | % |  |  | 0 | % |  |  | 33 | %
Third largest collaboration partner |  |  | 0 | % |  |  | 9 | % |  |  | 0 | % |  |  | 15 | %
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, 2023 (in thousands):
|  | Balance at Beginning of Period |  |  | Provisions related to current period sales |  |  | Credit or payments made during the period |  |  | Adjustments related to prior periods |  |  | Balance at End of Period |
Nine months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable reserves (1) |  | $ | 8,179 |  |  | $ | 42,949 |  |  | $ | (40,186 | ) |  | $ | (2,629 | ) |  | $ | 8,313 |
Revenue reserve accruals (2) |  | $ | 10,552 |  |  | $ | 34,848 |  |  | $ | (27,528 | ) |  | $ | 2,297 |  |  | $ | 20,169 |
(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 and perform services under our agreement with the DoD, we recognize 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 |  |  | Subtractions |  |  | Reclassification (1) |  |  | Balance at End of Period |
Nine months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contract asset, included in other current assets (2) |  | $ | 71,965 |  |  | $ | 14,396 |  |  | $ | (13,175 | ) |  | $ | (71,307 | ) |  | $ | 1,879 |
Contract asset, included in other assets (long term) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 71,307 |  |  | $ | 71,307 |
(1) The Clover contract asset was reclassified to long term assets to reflect the timing of expected long term demand for CpG 1018 adjuvant for Clover Product. See Note 6 for further discussion. (2) The $1.9 million of contract asset is derived from our agreement with the DoD.

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