Revenue Recognition

3 Months Ended

Mar. 31, 2015

5.	Revenue Recognition

Concentration of Significant Customers

One distributor and one direct customer comprised 50% of our revenue recognized for the three months ended March 31, 2015. One direct customer and two distributors accounted for 71% of total outstanding accounts receivable as of March 31, 2015.

Three distributors comprised 68% of our revenue recognized for the three months ended March 31, 2014. Two distributors accounted for 70% of total outstanding accounts receivable as of March 31, 2014.

Product revenues, classified by geographic location, are as follows:

	Three months ended

	March 31, 2015					March 31, 2014
	Product Revenues		% of Total			Product Revenues		% of Total

North America	$	136,000		15	%	$	175,000		17	%
Japan		605,000		67	%		644,000		62	%
Europe		89,000		10	%		212,000		21	%
Other countries		72,000		8	%		—		—
Total product revenues	$	902,000		100	%	$	1,031,000		100	%

Research and Development

We earn revenue for performing tasks under research and development agreements with governmental agencies like the BARDA. Revenues derived from reimbursement of direct out-of-pocket expenses for research costs associated with government contracts are recorded as government contract and other within development revenues. Government contract revenue is recorded at the gross amount of the reimbursement. The costs associated with these reimbursements are reflected as a component of research and development expense in our statements of operations. We recognized $1.4 million in BARDA revenue for the three months ended March 31, 2015, as compared to $0.4 million for the three months ended March 31, 2014.