6.	Revenue Recognition

Concentration of Significant Customers

Two distributors and two direct customers comprised 76% of our revenue recognized for the six months ended June 30, 2016. Two distributors and one direct customer accounted for 75% of total outstanding accounts receivable (excluding receivables from U.S. Department and Human Service’s Biomedical Advanced Research and Development Authority (BARDA)) as of June 30, 2016.

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.

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

	Three months ended										Six months ended
	June 30, 2016					June 30, 2015					June 30, 2016					June 30, 2015
	Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total
Americas	$	356,000		31	%	$	272,000		17	%	$	591,000		24	%	$	477,000		19	%
Japan		690,000		61	%		352,000		22	%		1,657,000		67	%		957,000		38	%
EMEA		74,000		7	%		328,000		20	%		205,000		8	%		416,000		17	%
Asia Pacific		6,000		1	%		662,000		41	%		6,000		1	%		666,000		26	%
Total product revenues	$	1,126,000		100	%	$	1,614,000		100	%	$	2,459,000		100	%	$	2,516,000		100	%

Research and Development

We earn revenue for performing tasks under research and development agreements with governmental agencies like the Biomedical Advanced Research and Development Authority (“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 $3.3 million in BARDA revenue for the three and six months ended June 30, 2016, respectively, as compared to $1.8 million and $3.3 million for the three and six months ended June 30, 2015, respectively.