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Segment, Geographical and Other Revenue Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment, Geographical and Other Revenue Information Segment, Geographical and Other Revenue Information
Segment Information
As of September 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 a restructuring of our business and that we are discontinuing investment in certain development programs, primarily in Novel Biotherapeutics.
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 September 30, 2023Three Months Ended September 30, 2022
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Revenues:
Product revenue$5,395 $— $5,395 $28,042 $— $28,042 
Research and development revenue3,315 567 3,882 3,104 3,324 6,428 
Total revenues8,710 567 9,277 31,146 3,324 34,470 
Costs and operating expenses:
Cost of product revenue2,249 — 2,249 9,786 — 9,786 
Research and development (1)
8,146 4,377 12,523 6,782 13,855 20,637 
Selling, general and administrative (1)
1,748 386 2,134 3,791 888 4,679 
Restructuring charges1,182 1,217 2,399 — — — 
Asset impairment and other charges (2)
— 778 778 — — — 
Total segment costs and operating expenses13,325 6,758 20,083 20,359 14,743 35,102 
Income (loss) from operations$(4,615)$(6,191)(10,806)$10,787 $(11,419)(632)
Corporate costs (3)
(22,736)(7,947)
Unallocated depreciation and amortization(1,357)(1,405)
Loss before income taxes$(34,899)$(9,984)
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Revenues:
Product revenue$24,807 $— $24,807 $93,376 $— $93,376 
Research and development revenue12,696 6,079 18,775 7,398 7,441 14,839 
Total revenues37,503 6,079 43,582 100,774 7,441 108,215 
Costs and operating expenses:
Cost of product revenue9,947 — 9,947 29,577 — 29,577 
Research and development (1)
24,100 19,929 44,029 19,833 37,279 57,112 
Selling, general and administrative (1)
6,578 1,528 8,106 11,208 2,288 13,496 
Restructuring charges1,182 1,362 2,544 — — — 
Asset impairment and other charges (2)
— 778 778 — — — 
Total segment costs and operating expenses41,807 23,597 65,404 60,618 39,567 100,185 
Income (loss) from operations$(4,304)$(17,518)(21,822)$40,156 $(32,126)8,030 
Corporate costs (3)
(42,890)(24,940)
Unallocated depreciation and amortization(4,302)(3,953)
Loss before income taxes$(69,014)$(20,863)
(1) Research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Impairment charge of $0.8 million is related to the goodwill allocated to the Novel Biotherapeutics segment.
(3) Corporate costs include unallocated selling, general and administrative expenses, unallocated asset impairment and restructuring charges, interest income, and other income (expense), net.
The following table provides stock-based compensation expense included in loss from operations (in thousands):
Three Months Ended September 30,
20232022
Performance EnzymesNovel BiotherapeuticsCorporate costTotalPerformance EnzymesNovel BiotherapeuticsCorporate costTotal
Stock-based compensation$903 $(235)$1,615 $2,283 $1,593 $414 $2,524 $4,531 
Nine Months Ended September 30,
20232022
Performance EnzymesNovel BiotherapeuticsCorporate costTotalPerformance EnzymesNovel BiotherapeuticsCorporate costTotal
Stock-based compensation$2,861 $98 $4,849 $7,808 $4,776 $1,182 $5,642 $11,600 

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 September 30,Nine Months Ended September 30,
2023202220232022
Customer A
20 %***
Customer B
*39 %15 %54 %
Customer C
*13 %**
Customer D
**10 %*
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
September 30, 2023December 31, 2022
Customer B
*53 %
Customer D
15 %*
Customer E
*10 %
Customer F
38 %*
Customer G
17 %*
* 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 September 30,Nine Months Ended September 30,
2023202220232022
Revenues
Americas$4,278 $4,822 $10,798 $12,167 
EMEA3,191 5,987 14,630 14,805 
APAC1,808 23,661 18,154 81,243 
Total revenues$9,277 $34,470 $43,582 $108,215 
Identifiable long-lived assets by location was as follows (in thousands):
September 30, 2023December 31, 2022
United States$29,177 $61,877 
Identifiable goodwill by reporting unit was as follows (in thousands):
Performance EnzymesNovel BiotherapeuticsTotal
Goodwill at January 1, 2023
$2,463 $778 $3,241 
Impairment
— (778)(778)
Goodwill at September 30, 2023
$2,463 $— $2,463 
For additional information on the goodwill impairment, see Note 7, “Balance Sheet Details.”