6.	Revenue Recognition

Concentration of Significant Customers

Three distributors and two direct customers comprised 80% of our revenue recognized for the nine months ended September 30, 2016. Two distributors and one direct customer accounted for 28% of total outstanding accounts receivable (excluding receivables from BARDA as of September 30, 2016.

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.

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

	Three months ended										Nine months ended
	September 30, 2016					September 30, 2015					September 30, 2016					September 30, 2015
	Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total
Americas	$	79,000		11	%	$	120,000		16	%	$	670,000		21	%	$	597,000		18	%
Japan		575,000		79	%		451,000		58	%		2,232,000		70	%		1,408,000		43	%
EMEA		76,000		10	%		75,000		10	%		281,000		9	%		491,000		15	%
Asia Pacific		1,000		0	%		120,000		16	%		7,000		0	%		785,000		24	%
Total product revenues	$	731,000		100	%	$	766,000		100	%	$	3,190,000		100	%	$	3,281,000		100	%

Research and Development

We earn revenue for performing tasks under research and development agreements with governmental agencies like 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 $1.9 million and $5.2 million in BARDA revenue for the three and nine months ended September 30, 2016, respectively, as compared to $1.7 million and $5.0 million for the three and nine months ended September 30, 2015, respectively.