Revenue Recognition (Policies)

6 Months Ended

Jun. 30, 2015

6.	Revenue Recognition

Concentration of Significant Customers

Two distributors and three direct customers comprised 68% of our revenue recognized for the six months ended June 30, 2015. Two direct customers accounted for 73% of total outstanding accounts receivable as of June 30, 2015.

Five distributors comprised 71% of our revenue recognized for the six months ended June 30, 2014. Three distributors accounted for 78% of total outstanding accounts receivable as of June 30, 2014.

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

	Three months ended										Six months ended

	June 30, 2015					June 30, 2014					June 30, 2015					June 30, 2014
	Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total

Americas	$	272,000		17	%	$	227,000		24	%	$	477,000		19	%	$	264,000		14	%
Japan		352,000		22	%		618,000		66	%		957,000		38	%		1,263,000		64	%
Europe		328,000		20	%		90,000		10	%		416,000		17	%		438,000		22	%
Asia Pacific		662,000		41	%		—		—			666,000		26	%		—		—
Total product revenues	$	1,614,000		100	%	$	935,000		100	%	$	2,516,000		100	%	$	1,965,000		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 $1.8 million and $3.3 million in BARDA revenue for the three and six months ended June 30, 2015, respectively as compared to $0.4 million and $0.8 million for the three and six months ended June 30, 2014, respectively.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

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