Revenue Recognition	9 Months Ended
Sep. 30, 2017
Revenue Recognition
Revenue Recognition	8. Revenue Recognition In August 2017, the Company entered into an option agreement (“Option Agreement”) with an unaffiliated party (“Recipient”), which is within the scope of ASC 606. Under the terms of the Option Agreement, the Company agreed to provide compound materials for certain of its product candidates and the right for the Recipient to use the materials to perform research during the term of the Option Agreement. At any point during the term of the Option Agreement, the Recipient may choose to exercise an option to enter into a license agreement with the Company, and the terms of the license agreement will be negotiated upon the exercise of such option. The Option Agreement includes a non-refundable up-front payment of $250 thousand. The term of the Option Agreement commenced in August 2017 and will continue upon additional payments of $250 thousand made by the Recipient, at its option, at the beginning of each of the next two quarterly periods. The option period will expire no later than 270 calendar days from the effective date, and may be terminated by the Recipient upon 30 days written notice. The Company concluded that the Option Agreement does not have any options to acquire additional goods or services that contain a material right. The Company evaluated the promised goods and services and determined the performance obligation should be recognized upon a transfer of control when the performance obligation has been satisfied at a point in time. During the three and nine months ended September 30, 2017, the Company recognized $250 thousand in revenue related to the option agreement. There were no contract assets or liabilities at September 30, 2017.

8. Revenue Recognition

In August 2017, the Company entered into an option agreement (“Option Agreement”) with an unaffiliated party (“Recipient”), which is within the scope of ASC 606. Under the terms of the Option Agreement, the Company agreed to provide compound materials for certain of its product candidates and the right for the Recipient to use the materials to perform research during the term of the Option Agreement. At any point during the term of the Option Agreement, the Recipient may choose to exercise an option to enter into a license agreement with the Company, and the terms of the license agreement will be negotiated upon the exercise of such option. The Option Agreement includes a non-refundable up-front payment of $250 thousand. The term of the Option Agreement commenced in August 2017 and will continue upon additional payments of $250 thousand made by the Recipient, at its option, at the beginning of each of the next two quarterly periods. The option period will expire no later than 270 calendar days from the effective date, and may be terminated by the Recipient upon 30 days written notice. The Company concluded that the Option Agreement does not have any options to acquire additional goods or services that contain a material right.

The Company evaluated the promised goods and services and determined the performance obligation should be recognized upon a transfer of control when the performance obligation has been satisfied at a point in time.

During the three and nine months ended September 30, 2017, the Company recognized $250 thousand in revenue related to the option agreement. There were no contract assets or liabilities at September 30, 2017.