6.	Revenue Recognition

Concentration of Significant Customers

Six direct customers comprised 61% of our revenue recognized for the nine months ended September 30, 2017. Four direct customers accounted for 78% 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 September 30, 2017.

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 as of September 30, 2016.

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

	Three months ended										Nine months ended
	September 30, 2017					September 30, 2016					September 30, 2017					September 30, 2016
	Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total			Product Revenues		% of Total
Americas	$	112		24	%	$	79		11	%	$	315		15	%	$	670		21	%
Japan		279		60	%		575		79	%		1,434		71	%		2,232		70	%
EMEA		18		4	%		76		10	%		204		10	%		281		9	%
Asia Pacific		58		12	%		1		0	%		74		4	%		7		0	%
Total product revenues	$	467		100	%	$	731		100	%	$	2,027		100	%	$	3,190		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 $1.3 million and $2.9 million in BARDA revenue for the three and nine months ended September 30, 2017, as compared to $1.9 million and $5.2 million for the three and nine months ended September 30, 2016.