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Revenue, Concentrations and Geographic Information

9 Months Ended

Sep. 30, 2024

Revenue, Concentrations and Geographic Information

Revenue, Concentrations and Geographic Information

Note 4. Revenue, Concentrations and Geographic Information

Customers

The Company grants credit to customers within the U.S. and international customers and does not require collateral. Revenue from international customers is generally secured by advance payments except for established foreign customers. The Company generally requires advance or credit card payments for initial revenue from new customers. The Company’s ability to collect receivables can be affected by economic fluctuations in the geographic areas and industries served by the Company.

The Company’s customers are in the biopharma, pharmaceutical, animal health, reproductive medicine, and other life science industries. Consequently, there is a concentration of accounts receivable within these industries, which is subject to normal credit risk. There were no customers that accounted for more than 10% of net accounts receivable at September 30, 2024 and December 31, 2023.

The Company has revenue from foreign customers primarily in the United Kingdom, France, Germany, China and India. During the three months ended September 30, 2024 and 2023, the Company had revenue from foreign customers of approximately $25.9 million and $24.6 million, respectively, which constituted approximately 45.7% and 43.8%, respectively, of total revenue. No single customer generated over 10% of revenue during the three months ended September 30, 2024 and 2023.

During the nine months ended September 30, 2024 and 2023, the Company had revenue from foreign customers of approximately $75.1 million and $79.6 million, respectively, which constituted approximately 44.4% and 45.3%, respectively, of total revenue. No single customer generated over 10% of revenue during the nine months ended September 30, 2024 and 2023.

Revenue Disaggregation

The Company views its operations, makes decisions regarding how to allocate resources and manages its business as one reportable segment and one reporting unit. As a result, the financial information disclosed herein represents all of the material financial information related to the Company. When disaggregating revenue, the Company considered all of the economic factors that may affect its revenue. Effective the first quarter of 2024, the Company began reporting its services revenue in the following categories: BioLogistics Solutions and BioStorage/BioServices as Life Sciences Services, and its products revenue as Life Sciences Products. The Company believes this change better aligns its revenue categories with its strategic priorities. The following table disaggregates the Company’s revenue by such categories for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
BioLogistics Solutions	$	35,302	$	32,486	$	103,076	$	97,093
BioStorage/BioServices		3,976		3,536		11,028		9,969
Life Sciences Services		39,278		36,022		114,104		107,062
Life Sciences Products		17,386		20,135		54,749		68,933
Total revenue	$	56,664	$	56,157	$	168,853	$	175,995

Given that the Company’s revenues are generated in different geographic regions, factors such as regulatory and geopolitical factors within those regions could impact the nature, timing and uncertainty of the Company’s revenues and cash flows. The Company’s geographical revenues, by origin, for the three and nine months ended September 30, 2024 and 2023, were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Americas	$	30,772	$	31,570	$	93,799	$	96,351
Europe, the Middle East, and Africa (EMEA)		14,474		14,236		44,736		47,507
Asia Pacific (APAC)		11,418		10,351		30,318		32,137
Total revenue	$	56,664	$	56,157	$	168,853	$	175,995

Contract Liabilities (Deferred Revenue)

Contract liabilities are recorded when cash payments are received in advance of the Company’s performance. Deferred revenue was $1.1 million and $1.3 million at September 30, 2024 and December 31, 2023, respectively. During the three months ended September 30, 2024 and 2023, the Company recognized revenues of $0.7 million and $0.5 million, respectively, from the related contract liabilities outstanding as the services were performed. During the nine months ended September 30, 2024 and 2023, the Company recognized revenues of $1.3 million and $0.9 million, respectively, from the related contract liabilities outstanding as the services were performed.

Credit Losses

Accounts receivable at September 30, 2024 and December 31, 2023 are net of allowance for credit losses of $2.1 million and $2.0 million, respectively. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at September 30, 2024 and December 31, 2023:


		September 30,	December 31,
		2024	2023
Balance of allowance for credit losses, beginning of period	$	1,992	1,275
Change in expected credit losses		159	812
Write-offs, net of recoveries		(83)	(95)
Balance of allowance for credit losses, end of period	$	2,068	1,992