| Revenue |
3.
Revenue
Our
disaggregated revenues were as follows (in thousands):
| | |
| |
| | |
Year Ended December 31, | |
| | |
2021 | | |
2020 | |
| | |
| | |
| |
| Royalties | |
$ | 2,776 | | |
$ | 773 | |
| | |
| | | |
| | |
| Grant revenues | |
| | | |
| | |
| Israel Innovation Authority (“IIA”) | |
$ | 445 | | |
$ | 666 | |
| National Institutes of Health (“NIH”) | |
| - | | |
| 387 | |
| Total grant revenues | |
| 445 | | |
| 1,053 | |
| | |
| | | |
| | |
| Revenues under collaborative agreements | |
| | | |
| | |
| Upfront license fees | |
| 452 | | |
| - | |
| Event-based development milestones | |
| 123 | | |
| - | |
| Reimbursements, cost-sharing payments | |
| 545 | | |
| - | |
| Total revenues under collaborative agreements | |
| 1,120 | | |
| - | |
| | |
| | | |
| | |
| Total revenue | |
$ | 4,341 | | |
$ | 1,826 | |
During
the year ended December 31, 2021 we recognized $4.3 million in total revenue. We recognized $1.1 million in revenues from new license
agreements granted in the period, which were recorded as revenues under collaboration agreements. This amount represents upfront license
fees and reimbursement revenues earned in the current year, as well as $0.1 million of variable consideration where development milestones
were achieved. We also recognized revenue of $0.1 million during the period for grant revenues which had been included in deferred revenues
at December 31, 2020.
Accounts
receivable and other receivable, net, and deferred revenues (contract liabilities) from contracts with customers, including collaboration
partners, consisted of the following (in thousands):
| | |
December
31, 2021 | | |
December
31, 2020 | |
| | |
(unaudited) | | |
| |
| Accounts receivable
and other receivable, net (1)(2) | |
$ | 50,640 | | |
$ | 242 | |
| Deferred revenues (1)(2) | |
| 50,500 | | |
| - | |
| |
(1) |
Increase in accounts receivable due to accrual of $50.0
million upfront payment related to Roche Agreement, offset to deferred revenues. |
| |
|
|
| |
(2) |
Excludes government grants
as Lineage has determined government grants are outside the scope of ASU 2014-09 - Revenue from Contracts with Customers (Topic 606).
|
As
of December 31, 2021, the amounts in the transaction price of our contracts with customers, including collaboration partners, and allocated
good and services not yet provided were $52.1
million, of which $0.8
million has been collected and is reported as
deferred revenues, $49.7
million was accrued to deferred revenues, and
$1.7 million
relates to unfulfilled commitments. The unfulfilled commitments are estimated to be delivered by the end of the fourth quarter of 2022.
Of the total deferred revenues of $50.5 million,
approximately $18.0
million is expected to be recognized within the next 12 months.
The
following table presents amounts under our collaboration agreements included in the transaction price (i.e., cumulative amounts
triggered or probable) as of December 31, 2021 (in thousands):
| | |
Upfront (1) | | |
Development (2) | | |
Reimbursements(3) | | |
Total | |
| Collaboration partner and agreement date: | |
| | | |
| | | |
| | | |
| | |
| ITI (April 2021)(4) | |
$ | 500 | | |
$ | 500 | | |
$ | 2,220 | | |
$ | 3,220 | |
| Roche
(December 2021) (5) | |
| 50,000 | | |
| - | | |
| - | | |
| 50,000 | |
| Total amounts under our collaboration agreements included in the transaction price | |
$ | 50,500 | | |
$ | 500 | | |
$ | 2,220 | | |
$ | 53,220 | |
| (1) |
Upfront license fees. |
| (2) |
Event-based development
and regulatory milestones amounts. |
| (3) |
Reimbursements and costs-sharing
payments. |
| |
|
| (4) |
Regarding the accounting treatment for the collaborative
agreement, the license and related development deliverables were determined to be highly interdependent and interrelated and have
been combined as one performance obligation. Delivery is determined to be over time and revenue will be recognized utilizing an input
method of costs incurred over total estimated costs in the work plan. The regulatory milestones are variable consideration that are
fully constrained until the uncertainty of each milestone has been resolved. Sales-based milestones and royalties are variable consideration
that will not be included in the transaction price until the related commercialization and sales have occurred. The cost reimbursements
are considered variable consideration and are included in the transaction price. Revenues related to the cost reimbursements are
presented gross on the consolidated statement of operations instead of a reduction to the costs being reimbursed. We currently estimate
the unsatisfied performance obligations within the contract to be completed by December 31, 2022. |
| |
|
| (5) |
Regarding the accounting treatment for the collaborative
agreement, the license, technology transfer and related clinical deliverables were determined to be highly interdependent and interrelated
and have been combined as one performance obligation. Delivery is determined to be over time and revenue will be recognized utilizing
an input method of costs incurred over total estimated costs to complete the performance obligation. A material customer option for
additional goods and services was included in the transaction price, and $12.0 million of the transaction price was allocated to
the second performance obligation. The option will be recognized when the customer exercises the option or when the option expires.
Regulatory and development milestones are variable consideration that are fully constrained until the uncertainty of each milestone
has been resolved. Sales-based milestones and royalties are variable consideration that will not be included in the transaction price
until the related commercialization milestones and sales targets have occurred. We currently estimate the unsatisfied performance
obligations within the contract to be completed by December 31, 2026. |
|