Revenue Recognition

3 Months Ended

Mar. 31, 2017

6.	Revenue Recognition

Concentration of Significant Customers

Three direct customers comprised 51% of our revenue recognized for the three months ended March 31, 2017. Two direct customers accounted for 53% of total outstanding accounts receivable (excluding receivables from the Biomedical Advanced Research Development Authority, a division of the U.S. Department of Health and Human Services (“BARDA”)) as of March 31, 2017.

One distributor and one direct customer comprised 68% of our revenue recognized for the three months ended March 31, 2016. One distributor and two direct customers accounted for 68% of total outstanding accounts receivable as of March 31, 2016.

Product revenues, classified by geographic location, are as follows (in thousands):

	Three months ended
	March 31, 2017					March 31, 2016
	Product Revenues		% of Total			Product Revenues		% of Total
Americas	$	148		25	%	$	235		18	%
Japan		320		54	%		966		72	%
EMEA		112		19	%		132		10	%
Asia Pacific		11		2	%		—		0	%
Total product revenues	$	591		100	%	$	1,333		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 contracts 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 $1.0 million in BARDA revenue for the three months ended March 31, 2017, as compared to $1.6 million for the three months ended March 31, 2016.