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Segment, Geographical and Other Revenue Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment, Geographical and Other Revenue Information Segment, Geographical and Other Revenue Information
Segment Information
As of June 30, 2023, we managed our business as two business segments: Performance Enzymes and Novel Biotherapeutics. Our business segments are primarily based on our organizational structure and our operating results as used by our CODM in assessing performance and allocating resources for the Company. In July 2023, we announced that we are discontinuing investment in Novel Biotherapeutics and expect to have just one business segment, Performance Enzymes, by the end of 2023.
We report corporate-related expenses such as legal, accounting, information technology, and other costs that are not otherwise included in our reportable business segments as "corporate costs." All items not included in income (loss) from operations are excluded from the business segments.
We manage our assets on a total company basis, not by business segment, as the majority of our operating assets are shared or commingled. Our CODM does not review asset information by business segment in assessing performance or allocating resources, and accordingly, we do not report asset information by business segment. All of our long lived assets are located in the United States.
Factors considered in historically determining the two reportable segments of the Company include the nature of business activities, the management structure directly accountable to our CODM for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors. Our CODM regularly reviews our segments and the approach provided by management for performance evaluation and resource allocation.
Operating expenses that directly support the segment activity are allocated based on segment headcount, revenue contribution or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments. This provides the CODM with more meaningful segment profitability reporting to support operating decisions and allocate resources.
The following table provides financial information by our reportable business segments along with a reconciliation to consolidated loss before income taxes (in thousands):
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Revenues:
Product revenue$11,048 $— $11,048 $34,645 $— $34,645 
Research and development revenue8,260 2,015 10,275 1,885 1,876 3,761 
Total revenues19,308 2,015 21,323 36,530 1,876 38,406 
Costs and operating expenses:
Cost of product revenue3,178 — 3,178 11,270 — 11,270 
Research and development (1)
7,856 8,240 16,096 6,929 11,078 18,007 
Selling, general and administrative (1)
2,032 191 2,223 3,876 680 4,556 
Restructuring charges— 72 72 — — — 
Total segment costs and operating expenses13,066 8,503 21,569 22,075 11,758 33,833 
Income (loss) from operations$6,242 $(6,488)(246)$14,455 $(9,882)4,573 
Corporate costs (2)
(9,788)(5,789)
Unallocated depreciation and amortization(1,480)(1,316)
Loss before income taxes$(11,514)$(2,532)
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Revenues:
Product revenue$19,412 $— $19,412 $65,335 $— $65,335 
Research and development revenue9,382 5,511 14,893 4,294 4,117 8,411 
Total revenues28,794 5,511 34,305 69,629 4,117 73,746 
Costs and operating expenses:
Cost of product revenue7,698 — 7,698 19,791 — 19,791 
Research and development (1)
15,955 15,552 31,507 13,051 23,424 36,475 
Selling, general and administrative (1)
4,830 1,142 5,972 7,416 1,400 8,816 
Restructuring charges— 145 145 — — — 
Total segment costs and operating expenses28,483 16,839 45,322 40,258 24,824 65,082 
Income (loss) from operations$311 $(11,328)(11,017)$29,371 $(20,707)8,664 
Corporate costs (2)
(20,152)(16,994)
Unallocated depreciation and amortization(2,946)(2,549)
Loss before income taxes$(34,115)$(10,879)
(1) Research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Corporate costs include unallocated selling, general and administrative expenses, interest income, and other expense, net.
The following table provides stock-based compensation expense included in loss from operations (in thousands):
Three Months Ended June 30,
20232022
Performance EnzymesNovel BiotherapeuticsCorporate costTotalPerformance EnzymesNovel BiotherapeuticsCorporate costTotal
Stock-based compensation$924 $(80)$1,872 $2,716 $1,493 $358 $1,380 $3,231 
Six Months Ended June 30,
20232022
Performance EnzymesNovel BiotherapeuticsCorporate costTotalPerformance EnzymesNovel BiotherapeuticsCorporate costTotal
Stock-based compensation$1,959 $333 $3,233 $5,525 $3,183 $768 $3,118 $7,069 
Significant Customers
Customers that each accounted for 10% or more of our total revenues were as follows:
Percentage of Total Revenues for the
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Customer A
28 %62 %17 %62 %
Customer B
18 %*11 %*
Customer C
11 %***
Customer D
**11 %*
Customer E
**10 %*
* Percentage was less than 10%
Customers that each accounted for 10% or more of accounts receivable balances as of the periods presented as follows:
Percentage of Accounts Receivables as of
June 30, 2023December 31, 2022
Customer A
*53 %
Customer D
11 %*
Customer E
12 %10 %
Customer F
17 %*
Customer G
14 %*
Customer H
12 %*
* Percentage was less than 10%
Geographical Information
Geographic revenues are identified by the location of the customer and consist of the following (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenues
Americas$3,937 $3,614 $6,521 $7,347 
EMEA8,349 4,690 11,438 8,817 
APAC9,037 30,102 16,346 57,582 
Total revenues$21,323 $38,406 $34,305 $73,746 
Identifiable long-lived assets by location was as follows (in thousands):
June 30, 2023December 31, 2022
United States$60,070 $61,877 
Identifiable goodwill by reporting unit was as follows (in thousands):
As of June 30, 2023 and December 31, 2022
Performance EnzymesNovel BiotherapeuticsTotal
Goodwill$2,463 $778 $3,241