Revenue Recognition (Policies)

9 Months Ended

Sep. 30, 2015

6.	Revenue Recognition

Concentration of Significant Customers

One distributor and three direct customers comprised 72% of our revenue recognized for the three months ended September 30, 2015. Two distributors and three direct customers comprised 67% of our revenue recognized for the nine months ended September 30, 2015. Three distributors and three direct customers accounted for 63% of total outstanding accounts receivable as of September 30, 2015.

Five distributors comprised 62% of our revenue recognized for the nine months ended September 30, 2014. Three distributors accounted for 92% of total outstanding accounts receivable as of December 31, 2014.

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

	Three months ended												Nine months ended

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

Americas	$	120,000		16	%	$	175,000		34	%	$	597,000		18	%	$	614,000		25	%
Japan		451,000		59	%		60,000		12	%		1,408,000		43	%		1,323,000		53	%
Europe		75,000		10	%		271,000		52	%		491,000		15	%		535,000		22	%
Asia Pacific		120,000		16	%		12,000		2	%		785,000		24	%		12,000		0	%
Total product revenues	$	766,000		100	%	$	518,000		100	%	$	3,281,000		100	%	$	2,484,000		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 $1.7 million and $5 million in BARDA revenue for the three and nine months ended September 30, 2015, respectively as compared to $0.6 million and $1.3 million for the three and nine months ended September 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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