What changed in this filing

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Item 1. Financial Statements

2021-11-05 compared with 2021-08-06 · 153 added, 154 removed, 642 unchanged (32% of the section changed)

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(In Thousands, Except Per Share Amounts)

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Current assets:

38 unchanged sentences

100,000 shares authorized;

64,623 shares and 64,283 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

64,833 and 64,283 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively

Additional paid-in capital 546,557 536,516

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(In Thousands, Except Per Share Amounts)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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Total costs and operating expenses 35,439 24,449 92,565 68,019

Loss from operations ( 4,486 ) ( 6,107 ) ( 13,641 ) ( 13,935 )

Income (loss) from operations 1,330 ( 6,064 ) ( 12,312 ) ( 19,996 )

Interest income 41 39 424 362

Other income (expense), net 983 ( 50 ) 920 ( 125 )

Loss before income taxes ( 4,257 ) ( 6,037 ) ( 13,322 ) ( 13,684 )

Income (loss) before income taxes 2,354 ( 6,075 ) ( 10,968 ) ( 19,759 )

Provision for income taxes 110 19 121 331

Net loss $ ( 4,265 ) $ ( 6,344 ) $ ( 13,333 ) $ ( 13,996 )

Net loss per share, basic and diluted $ ( 0.07 ) $ ( 0.11 ) $ ( 0.21 ) $ ( 0.24 )

Weighted average common stock shares used in computing net loss per share, basic and diluted 64,434 59,000 64,363 58,944

Net income (loss) $ 2,244 $ ( 6,094 ) $ ( 11,089 ) $ ( 20,090 )

Net income (loss) per share, basic $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )

Net income (loss) per share, diluted $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )

Weighted average common stock shares used in computing net income (loss) per share, basic 64,628 59,061 64,452 58,984

Weighted average common stock shares used in computing net income (loss) per share, diluted 67,741 59,061 64,452 58,984

See accompanying notes to the unaudited condensed consolidated financial statements

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Capital Accumulated Deficit Total Stockholders' Equity

Three months ended June 30, 2021 Shares Amount

Balance as of April 1, 2021 64,488 $ 6 $ 539,220 $ ( 375,487 ) $ 163,739

Three months ended September 30, 2021 Shares Amount

Balance as of July 1, 2021 64,623 $ 6 $ 542,519 $ ( 379,752 ) $ 162,773

Exercise of stock options 210 — 1,022 — 1,022

Release of stock awards 42 — — — —

Employee stock-based compensation — — 2,955 — 2,955

Non-employee stock-based compensation — — 61 — 61

Taxes paid related to net share settlement of equity awards ( 2 ) — — — —

Net loss — — — ( 4,265 ) ( 4,265 )

Balance as of June 30, 2021 64,623 $ 6 $ 542,519 $ ( 379,752 ) $ 162,773

Net income — — — 2,244 2,244

Balance as of September 30, 2021 64,833 $ 6 $ 546,557 $ ( 377,508 ) $ 169,055

Common Stock Additional

Capital Accumulated Deficit Total Stockholders' Equity

Three months ended June 30, 2020 Shares Amount

Balance as of April 1, 2020 59,017 $ 6 $ 449,121 $ ( 350,061 ) $ 99,066

Three months ended September 30, 2020 Shares Amount

Balance as of July 1, 2020 59,125 $ 6 $ 451,185 $ ( 356,405 ) $ 94,786

Exercise of stock options 55 — 342 — 342

Release of stock awards 70 — — — —

Taxes paid related to net shares settlement of equity awards ( 18 ) — ( 217 ) — ( 217 )

Employee stock-based compensation — — 1,941 — 1,941

Non-employee stock-based compensation — — 43 — 43

Taxes paid related to net share settlement of equity awards — — ( 33 ) — ( 33 )

Net loss — — — ( 6,094 ) ( 6,094 )

Balance as of June 30, 2020 59,125 $ 6 $ 451,185 $ ( 356,405 ) $ 94,786

Balance as of September 30, 2020 59,232 $ 6 $ 453,294 $ ( 362,499 ) $ 90,801

See accompanying notes to the unaudited condensed consolidated financial statements

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Capital Accumulated Deficit Total Stockholders' Equity

Six months ended June 30, 2021 Shares Amount

Nine months ended September 30, 2021 Shares Amount

Balance as of January 1, 2021 64,283 $ 6 $ 536,516 $ ( 366,419 ) $ 170,103

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Release of stock awards 181 — — — —

Taxes paid related to net shares settlement of equity awards ( 54 ) — ( 1,206 ) — ( 1,206 )

Employee stock-based compensation — — 8,360 — 8,360

Non-employee stock-based compensation — — 187 — 187

Taxes paid related to net share settlement of equity awards ( 54 ) — ( 1,206 ) — ( 1,206 )

Net loss — — — ( 11,089 ) ( 11,089 )

Balance as of June 30.

2021 64,623 $ 6 $ 542,519 $ ( 379,752 ) $ 162,773

Balance as of September 30, 2021 64,833 $ 6 $ 546,557 $ ( 377,508 ) $ 169,055

Common Stock Additional

Capital Accumulated Deficit Total Stockholders' Equity

Six months ended June 30, 2020 Shares Amount

Nine months ended September 30, 2020 Shares Amount

Balance as of January 1, 2020 58,877 $ 6 $ 447,920 $ ( 342,409 ) $ 105,517

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Release of stock awards 370 — — —

Taxes paid related to net shares settlement of equity awards ( 102 ) — ( 1,257 ) — ( 1,257 )

Employee stock-based compensation — — 6,045 — 6,045

Non-employee stock-based compensation — — 47 — 47

Taxes paid related to net share settlement of equity awards ( 84 ) — ( 1,040 ) — ( 1,040 )

Net loss — — — ( 20,090 ) ( 20,090 )

Balance as of June 30, 2020 59,125 $ 6 $ 451,185 $ ( 356,405 ) $ 94,786

Balance as of September 30, 2020 59,232 $ 6 $ 453,294 $ ( 362,499 ) $ 90,801

See accompanying notes to the unaudited condensed consolidated financial statements

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(Unaudited, in Thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Operating activities:

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Stock-based compensation 8,547 6,092

Allowance for credit losses — 40

Equity securities earned from research and development activities ( 675 ) —

Unrealized gain on non-marketable securities ( 1,033 ) —

Other non-cash items ( 19 ) —

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Proceeds from exercises of stock options 2,700 539

Costs incurred in connection with equity financing ( 153 ) —

Payments of lease obligations - Finance leases — ( 60 )

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Capital expenditures incurred but not yet paid $ 2,012 $ 289

Assets received for research and development revenue earned $ 1,350 $ —

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets as of June 30, 2021 and 2020 to the total of the same such amounts shown above in the unaudited condensed consolidated statements of cash flows:

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets as of September 30, 2021 and 2020 to the total of the same such amounts shown above in the unaudited condensed consolidated statements of cash flows:

September 30,

Cash and cash equivalents $ 119,189 $ 71,516

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and its subsidiaries on a consolidated basis.

We discover, develop and sell enzymes and other proteins that deliver value to our clients in a growing set of industries.

We view proteins as a vast, largely untapped source of value-creating products, and we are using our proven technologies, which we have been continuously improving since our inception in 2002, to commercialize an increasing number of novel enzymes, both as proprietary Codexis products and in partnership with our customers.

We discover, develop and sell enzymes and other proteins that deliver value to our clients in a growing set of industries to commercialize an increasing number of novel enzymes, both as proprietary Codexis products and in partnership with our customers.

We are a pioneer in harnessing computational technologies to drive biology advancements.

Since 2002, we have made substantial investments in the development of our CodeEvolver ® protein engineering technology platform, the primary source of our competitive advantage.

Since 2002, we have made substantial investments in the development of our CodeEvolver ® protein engineering technology platform.

Our technology platform is powered by proprietary, artificial intelligence-based, computational algorithms that rapidly mine the structural and performance attributes of our large and continuously growing library of protein variants.

These computational outputs enable increasingly reliable predictions for next generation protein variants to be engineered, enabling time- and cost-efficient delivery of the targeted performance enhancements.

In addition to its computational prowess, our CodeEvolver ® protein engineering technology platform integrates additional modular competencies, including robotic high-throughput screening and genomic sequencing, organic chemistry and bioprocess development which are all coordinated to rapidly innovate novel, fit-for-purpose products.

Additionally, our CodeEvolver ® protein engineering technology platform integrates additional modular competencies, including robotic high-throughput screening and genomic sequencing, organic chemistry and bioprocess development which are all coordinated to rapidly innovate novel, fit-for-purpose products.

The core historical application of the technology has been in developing commercially viable biocatalytic manufacturing processes for more sustainable production of complex chemicals.

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This also allows for efficient technical transfer of our processes to our manufacturing partners.

The successful embodiment of our CodeEvolver ® protein engineering technology platform in commercial manufacturing processes requires well-integrated expertise in a number of technical disciplines.

In addition to those competencies directly integrated in our CodeEvolver ® protein engineering platform, such as molecular biology, enzymology, microbiology, cellular engineering, metabolic engineering, bioinformatics, biochemistry and high throughput analytical chemistry, our process development projects also involve integrated expertise in organic chemistry, chemical process development, chemical engineering, bioprocess development and fermentation engineering.

Our integrated, multi-disciplinary approach to product and process development is a critical success factor for the Company.

We initially commercialized our CodeEvolver ® protein engineering technology platform and products in the manufacture of small molecule pharmaceuticals, which remains a primary business focus.

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PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient.

In October 2017, we entered into a Global Development, Option and License Agreement (the “Nestlé License Agreement”) with Societé des Produits Nestlé S.A., formerly known as Nestec Ltd.

In October 2017, we entered into a Global Development, Option and License Agreement (the “Nestlé License Agreement”) with Société des Produits Nestlé S.A., formerly known as Nestec Ltd.

(“Nestlé Health Science”) to advance CDX-6114, our enzyme biotherapeutic product candidate for the potential treatment of PKU.

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In January 2020, we entered into a development agreement with Nestlé Health Science to advance a new lead candidate discovered under the Nestlé SCA, CDX-7108, into preclinical development and early clinical studies as a potential treatment for a gastrointestinal disorder.

In parallel, the Nestlé SCA was extended through December 2021 to support the discovery of therapeutic candidates for additional disorders.

In March 2020, we entered into a Strategic Collaboration and License Agreement (“Takeda Agreement”) with Shire Human Genetic Therapies, Inc., a wholly-owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”), for the research and development of novel gene therapies for certain disease indications, including the treatment of lysosomal storage disorders and a blood factor deficiency.

In June 2020, we entered into a Master Collaboration and Research Agreement (the “MAI Agreement”) with Molecular Assemblies, Inc ("MAI") pursuant to which we are leveraging our CodeEvolver ® platform technology to improve the DNA polymerase enzymes that are critical for enzymatic DNA synthesis.

Concurrently with the MAI Agreement, we entered into a Stock Purchase Agreement with MAI pursuant to which we purchased 1,587,050 shares of MAI's Series A preferred stock for $ 1.0 million and, in connection with the transaction, John Nicols, our President and Chief Executive Officer, joined MAI’s board of directors.

Concurrently with the MAI Agreement, we purchased 1,587,050 shares of MAI's Series A preferred stock for $ 1.0 million and, in connection with the transaction, John Nicols, our President and Chief Executive Officer, joined MAI’s board of directors.

In April 2021, we purchased an additional 1,000,000 shares of MAI's Series A preferred stock for $ 0.6 million.

In September 2021, we purchased 9,198,423 shares of MAI's Series B preferred stock for $ 7.0 million (see Note 11 "Related Party Transactions" for additional information).

See Note 12 "Segment, Geographical and Other Revenue Information" for additional information.

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In February 2019, Nestlé Health Science exercised its option to obtain an exclusive, worldwide, royalty-bearing, sub-licensable license for the global development and commercialization of CDX-6114 for the management of PKU.

As a result of the option exercise, we earned a milestone and recognized $ 3.0 million in revenues in the first quarter of 2019.

Upon exercising its option, Nestlé Health Science assumed all responsibilities for future clinical development and commercialization of CDX-6114.

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The Nestlé SCA was extended through December 2021.

In January 2020,

we and Nestlé Health Science entered into a development agreement pursuant to which we and Nestlé Health Science are collaborating to advance into preclinical and early clinical studies a lead candidate targeting a gastrointestinal disorder, CDX-7108, discovered through the Nestlé SCA.

During 2021, we, together with Nestlé Health Science, continued to advance CDX-7108 towards initiation of a Phase 1 clinical trial which we anticipate will begin in the fourth quarter of 2021.

In January 2020, we and Nestlé Health Science entered into a development agreement pursuant to which we and Nestlé Health Science are collaborating to advance into preclinical and early clinical studies a lead candidate targeting a gastrointestinal disorder, CDX-7108, discovered through the Nestlé SCA.

During 2021, we, together with Nestlé Health Science, continued to advance CDX-7108 towards initiation of a Phase 1 clinical trial which commenced in October 2021.

Additionally, the parties are progressing three programs under the Nestlé SCA targeting different gastrointestinal disorders.

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Furthermore, our ability to provide future research and development ("R&D") services will continue to be impacted as a result of governmental orders and any disruptions in operations of our customers with whom we collaborate.

We believe that these disruptions have had a minimal impact on revenue for the three and six months ended June 30, 2021.

We believe that these disruptions have had a minimal impact on revenue for the three and nine months ended September 30, 2021.

The extent to which the pandemic may impact our business operations and operating results will continue to remain highly dependent on future developments, which are uncertain and cannot be predicted with confidence.

In the U.S., the impact of COVID-19, including governmental orders ("Orders") governing the operation of businesses during the pandemic, caused the temporary closure of our Redwood City, California facilities and has disrupted our R&D operations.

R&D operations for several projects were temporarily suspended from mid-March 2020 through the end of April 2020 in accordance with these Orders.

In May 2020, we initiated limited R&D operations and have ramped up operations such that we are currently utilizing the majority of our normal R&D capacity while following county, state and federal COVID-19 guidance for the protection of our employees.

In May 2020, we initiated limited R&D operations and have ramped up operations such that we are currently utilizing our normal R&D capacity while following county, state and federal COVID-19 guidance for the protection of our employees.

Additionally, we resumed manufacturing at our Redwood City pilot plant in May 2020.

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Although some of the Orders that were enacted to control the spread of COVID-19 were scaled back and the vaccine rollout has expanded, surges in the spread of COVID-19 due to the emergence of new more contagious variants or the ineffectiveness of the vaccines against such strains, may result in the reimplementation of certain Orders, which could adversely impact our business.

For additional information on the various risks posed by the COVID-19 pandemic, please read Item 1A.

Risk Factors included in our Annual Report on Form 10-K, for the fiscal year ended December 31, 2020, filed on March 1, 2021.

Basis of Presentation and Summary of Significant Accounting Policies

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These interim Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2020.

The condensed consolidated balance sheet at

December 31, 2020 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements.

The significant accounting policies used in preparation of the Unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2021 and 2020, are consistent with those discussed in Note 2 to the audited consolidated financial statements in the Company’s 2020 Annual Report on Form 10-K and are updated below as necessary.

The condensed consolidated balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements.

The significant accounting policies used in preparation of the Unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2021 and 2020, are consistent with those discussed in Note 2 to the audited consolidated financial statements in the Company’s 2020 Annual Report on Form 10-K and are updated below as necessary.

There have been no significant changes in our significant accounting policies or critical accounting estimates since December 31, 2020.

Certain prior year amounts have been reclassified in the Unaudited Condensed Statements of Cash Flows to conform to the 2021 presentation, however these reclassifications had no effect on the reported results of of operations.

The Unaudited Condensed Consolidated Financial Statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly our financial position as of June 30, 2021, results of our operations for the three and six months ended June 30, 2021 and 2020, changes in stockholders' equity for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020.

The Unaudited Condensed Consolidated Financial Statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly our financial position as of September 30, 2021, results of our operations for the three and nine months ended September 30, 2021 and 2020, changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020.

The interim results are not necessarily indicative of the results for any future interim period or for the entire year.

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The preparation of our unaudited condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities.

We regularly assess these estimates which primarily affect revenue recognition, inventories, goodwill arising out of business acquisitions, accrued liabilities, stock awards, and the valuation allowances associated with deferred tax assets.

We regularly assess these estimates which primarily affect revenue recognition, inventories, valuation of equity investments, goodwill arising out of business acquisitions, accrued liabilities, stock awards, and the valuation allowances associated with deferred tax assets.

Actual results could differ from those estimates and such differences may be material to the consolidated financial statements.

The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, and may not be accurately predicted, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers, markets and economies.

Financial Statement Exclusion

The net loss in the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020, is not different from the Unaudited Condensed Consolidated Statements of Comprehensive Loss for the same periods.

Accordingly, the Unaudited Condensed Consolidated Financial Statements exclude the Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2021 and 2020.

Accounting Pronouncements

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We will evaluate modifications of equity-classified written call options to determine applicability of the standard on occurrence;

however, we believe that the adoption of ASU 2021-04 will have no impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.

however, we believe that the adoption of ASU 2021-04 will have no significant impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.

In August 2020, FASB issued ASU No.

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The standard may be adopted on a modified retrospective or fully retrospective method of transition and on adoption, entities may irrevocably elect the fair value option in accordance with Subtopic 825-10, Financial Instruments—Overall, for any financial instrument that is a convertible security.

We believe that the adoption of ASU 2020-06 will have no impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.

We believe that the adoption of ASU 2020-06 will have no significant impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.

In March 2020, the FASB issued ASU No.

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We will evaluate transactions or contract modifications occurring as a result of reference rate reform and determine whether to elect optional expedients for contract modification;

however, we believe that the adoption of ASU 2020-04 will have no impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.

There have been no other recent accounting pronouncements or changes in accounting pronouncements during the three and six months ended June 30, 2021, as compared to the recent accounting pronouncements described in herein, that are of significance or potential significance to us.

however, we believe that the adoption of ASU 2020-04 will have no significant impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.

There have been no other recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended September 30, 2021, as compared to the recent accounting pronouncements described in herein, that are of significance or potential significance to us.

Revenue Recognition

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Segment information is as follows (in thousands):

Three months ended June 30, 2021 Three months ended June 30, 2020

Three months ended September 30, 2021 Three months ended September 30, 2020

Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total

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Total revenues $ 32,584 $ 4,185 $ 36,769 $ 13,005 $ 5,380 $ 18,385

Six months ended June 30, 2021 Six months ended June 30, 2020

Nine months ended September 30, 2021 Nine months ended September 30, 2020

Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total

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The following table presents balances of contract assets, unbilled receivables, contract costs, and contract liabilities (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Contract assets $ 12,701 $ 4,526

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deferred revenue $ 6,196 $ 4,791

We had no asset impairment charges related to financial assets in the three and six months ended June 30, 2021 and 2020.

Contract assets remained unchanged as of June 30, 2021 and December 31, 2020.

The increase in unbilled receivables was primarily due to the timing of billings.

We had no asset impairment charges related to financial assets in the three and nine months ended September 30, 2021 and 2020.

The increase in contract assets was primarily due to increase in product revenue from contracts subject to over time

revenue recognition.

The nominal decrease in unbilled receivables was primarily due to the timing of billings.

The increase in deferred revenue was primarily due to cash advances received in excess of revenue recognized.

We recognized the following revenues (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

Revenue recognized in the period for:

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The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting periods.

The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of June 30, 2021.

The balances in the table below are partially based on judgments involved in estimating future orders from customers subject to the exercise of material rights pursuant to respective contracts as of June 30, 2021 (in thousands):

Remainder of 2021 2022 2023 2024 and Thereafter Total

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Total revenues $ 1,111 $ 1,772 $ 613 $ 2,700 $ 6,196

N et Loss per S hare

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding, less restricted stock awards (“RSAs”) subject to forfeiture.

Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock shares outstanding, less RSAs subject to forfeiture, plus all additional common shares that would have been outstanding, assuming dilutive potential common stock shares had been issued for other dilutive securities.

N et Income (loss) per S hare

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding, less restricted stock awards (“RSAs”) subject to forfeiture.

Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock shares outstanding, less RSAs subject to forfeiture, plus all additional common shares that would have been outstanding, assuming dilutive potential common stock shares had been issued for other dilutive securities.

Anti-Dilutive Securities

In periods of net loss, the weighted average number of shares outstanding, prior to the application of the treasury stock method, excludes potentially dilutive securities from the computation of diluted net loss per common share because including such shares would have an anti-dilutive effect.

The following shares were not considered in the computation of diluted net loss per share because their effect was anti-dilutive (in thousands):

Three months ended June 30, Six months ended June 30,

The following table sets forth the computation of basic and diluted net income (loss) per share during the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share amounts):

Three months ended September 30, Nine months ended September 30,

2021 2020 2021 2020

Net income (loss) $ 2,244 $ ( 6,094 ) $ ( 11,089 ) $ ( 20,090 )

Weighted average common stock shares used in computing net income (loss) per share, basic 64,628 59,061 64,452 58,984

Effect of dilutive shares 3,113 — — —

Weighted average common stock shares used in computing net income (loss) per share, diluted 67,741 59,061 64,452 58,984

Net income (loss) per share, basic $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )

Net income (loss) per share, diluted $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )

The following shares were not considered in the computation of diluted net income (loss) per share because their effect was anti-dilutive (in thousands):

Three months ended September 30, Nine months ended September 30,

2021 2020 2021 2020

Shares issuable under the Equity Incentive Plan 451 5,182 5,148 5,182

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Realized gains or losses are recorded as a component of other income (expense), net.

In the three and six months ended June 30, 2021, we recognized $ 0.2 million and $ 0.3 million, respectively, in interest income from amortization of debt discount and interest earned on our investment in non-marketable debt security, and $ 57.5 thousand in other income and $ 10.5 thousand in other expense , respectively, in other income (expense), net, on the change in the fair value of an embedded bifurcated derivative.

We recognized no unrealized or realized gains or losses during the three and six months ended June 30, 2021.

We recognized no interest income, other expenses, and unrealized or realized gains or losses during the three and six months ended June 30, 2020.

The following table presents balances of the adjusted cost and carrying value and fair value of non-marketable debt security by contractual maturity (in thousands):

June 30, 2021

Adjusted Cost and Carrying Value Fair Value

Non-marketable debt security due in 1 year or less $ 1,289 $ 1,289

In November 2020, we purchased convertible subordinated notes issued by Arzeda Corp., an early-stage computational protein design company, for $ 1.0 million.

The investment was classified as available-for-sale non-marketable interest-bearing debt securities with a carrying value of $ 1.0 million as of December 31, 2020.

In July 2021, we converted the non-marketable debt security with a carrying value of $ 1.3 million into 207,070 shares of Series B-2 preferred stock of Arzeda Corp.

In the three and nine months ended September 30, 2021, w e recognized nil and $ 0.3 million, respectively, in interest income from amortization of debt discount and interest earned on our investment in this debt security, and nil and $ 10.5 thousand in other expense , respectively, in other income (expense), net, on the change in the fair value of an embedded bifurcated derivative.

We recognized no unrealized or realized gains or losses during the three and nine months ended September 30, 2021.

We recognized no interest income, other expenses, and unrealized or realized gains or losses during the three and nine months ended September 30, 2020.

There were no investments in non-marketable debt securities at September 30, 2021.

As of December 31, 2020, the adjusted cost and carrying value and fair value of the non-marketable debt security is the following (in thousands):

December 31, 2020

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We measure investments in non-marketable equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis.

The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3.

We adjust the carrying value of non-marketable equity securities which have been remeasured during the period and recognize resulting gains or losses as a component of other income (expense), net.

We recognized no unrealized or realized gain or losses during the three and six months ended June 30, 2021 and 2020.

We measured our equity investments in MAI and Arzeda Corp.

based on the measurement alternative and adjusted the carrying values for observable price changes in orderly transactions for an identical or similar equity securities of the same issuer.

We recognized a $ 0.7 million gain in other income (expense), net, on the change in the carrying value of our investment in MAI as a result of a recent round of financing.

We recognized no unrealized or realized gain or losses d uring the three and nine months ended September 30, 2020.

The carrying value of our investment in MAI was $ 11.5 million and $ 1.5 million at September 30, 2021 and December 31, 2020, respectively.

The carrying value of our investment in Arzeda Corp.

was $ 1.3 million at September 30, 2021.

The following table presents balances of the carrying value of non-marketable equity securities (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Non-marketable equity securities $ 12,763 $ 1,450

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The following tables present the financial instruments that were measured at fair value on a recurring basis within the fair value hierarchy (in thousands):

June 30, 2021

September 30, 2021

Level 1 Level 2 Level 3 Total

Money market funds $ 95,089 $ — $ — $ 95,089

Non-marketable debt security — — 1,289 1,289

Total $ 111,083 $ — $ 1,289 $ 112,372

December 31, 2020

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Total $ 127,567 $ — $ 1,000 $ 128,567

The fair value of non-marketable securities remeasured due to impairment would be classified within Level 3.

During the three and six months ended June 30, 2021 and 2020, we did no t recognize any significant credit losses no r other-than-temporary impairment losses on non-marketable securities.

The carrying value of our non-marketable securities approximated fair value.

During the three and nine months ended September 30, 2021 and 2020, we did no t recognize any significant credit losses no r other-than-temporary impairment losses on non-marketable securities.

Balance Sheets Details

Cash Equivalents

Cash equivalents as of June 30, 2021 and December 31, 2020, consisted of the following (in thousands):

June 30, 2021 December 31, 2020

Cash equivalents as of September 30, 2021 and December 31, 2020, consisted of the following (in thousands):

September 30, 2021 December 31, 2020

Adjusted Cost Estimated Fair Value Adjusted Cost Estimated Fair Value

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Average Contractual Maturities (in days) is not applicable.

As of June 30, 2021, the total cash and cash equivalents balance of $ 129.5 million was comprised of money market funds of $ 111.1 million and cash of $ 18.4 million held with major financial institutions.

As of September 30, 2021, the total cash and cash equivalents balance of $ 119.2 million was comprised of money market funds of $ 95.1 million and cash of $ 24.1 million held with major financial institutions.

As of December 31, 2020, the total cash and cash equivalents balance of $ 149.1 million was comprised of money market funds of $ 127.6 million and cash of $ 21.5 million held with major financial institutions.

Inventories consisted of the following (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Raw materials $ 49 $ 77

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Inventories $ 1,084 $ 964

Inventories includes reserves of $ 1.5 million as of June 30, 2021 and December 31, 2020.

Inventories are recorded net of reserves of $ 1.5 million as of September 30, 2021 and December 31, 2020.

Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Laboratory equipment $ 29,103 $ 25,468

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Depreciation expense included in the Unaudited Condensed Consolidated Statements of Operations was follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2021 2020 2021 2020

Depreciation Expense $ 768 $ 503 $ 2,143 $ 1,403

Goodwill had a carrying value of $ 3.2 million as of June 30, 2021 and December 31, 2020.

Goodwill had a carrying value of $ 3.2 million as of September 30, 2021 and December 31, 2020.

Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Accrued purchases $ 9,050 $ 7,170

Accrued professional and outside service fees 5,936 2,589

Other 941 513

Total $ 15,927 $ 10,272

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The 2019 Plan provides for the grant of stock options, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance-contingent restricted stock units ("PSUs"), performance-based options ("PBOs"), other stock or cash-based awards and dividend equivalents to eligible employees and consultants of the Company or any parent or subsidiary, as well as members of the Board.

The number of shares of our common stock available for issuance under the 2019 Plan is equal to the sum of (i) 7,897,144 shares, and (ii) any shares subject to awards granted under the 2010 Plan that were outstanding as of April 22, 2019 and thereafter terminate, expire, lapse or are forfeited;

provided that no more than 14,000,000 shares may be issued upon the exercise of incentive stock options (“ISOs”).

In June 2019, 8.1 million shares authorized for issuance under the 2019 Plan were registered under the Securities Act of 1933, as amended (the “Securities Act”).

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The PSUs and PBOs vest based upon both the successful achievement of certain corporate operating milestones in specified timelines and continued employment through the applicable vesting date.

When the performance goals are deemed to be probable of achievement for these types of awards, recognition of stock-based compensation expense commences.

When the performance goals are deemed to be probable of achievement for these types of awards, recognition of stock-based

compensation expense commences.

Once the number of shares eligible to vest is determined, those shares vest in two equal installments with 50 % vesting upon achievement and the remaining 50 % vesting on the first anniversary of achievement, in each case, subject to the recipient’s continued service through the applicable vesting date.

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In the first quarter of 2021, we awarded PSUs ("2021 PSUs") and PBOs ("2021 PBOs"), each of which commence vesting based upon the achievement of various weighted performance goals, including corporate revenue, performance enzyme segment gross margin, major new biotherapeutics publicity events, strategic performance enzyme and biotherapeutics deliverables, safety, and technology and strategic plan development.

As of June 30, 2021, we estimated that the 2021 PSUs and 2021 PBOs performance goals would be achieved at 136 % and 68 % of the target level, respectively, and recognized expenses accordingly.

As of September 30, 2021, we estimated that the 2021 PSUs and 2021 PBOs performance goals would be achieved at 146 % and 73 % of the target level, respectively, and recognized stock-based compensation expenses accordingly.

In 2020, we awarded PSUs ("2020 PSUs") and PBOs ("2020 PBOs"), each of which commenced vesting based upon the achievement of various weighted performance goals, including corporate revenue, performance enzyme segment gross margin, major new biotherapeutics publicity events, strategic performance enzyme and biotherapeutics deliverables, and strategic plan development.

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In the first quarter of 2020, we determined that the 2019 PSUs and 2019 PBOs performance goals had been achieved at 84 % of the target level, and recognized expenses accordingly.

Accordingly, 50 % of the shares underlying the 2019 PSUs and PBOs vested in the first quarter of 2020 and 50 %

of the shares underlying the 2019 PSUs and PBOs vested in the first quarter of 2021, in each case, subject to the recipient’s continued service on each vesting date.

Accordingly, 50 % of the shares underlying the 2019 PSUs and PBOs vested in the first quarter of 2020 and 50 % of the shares underlying the 2019 PSUs and PBOs vested in the first quarter of 2021, in each case, subject to the recipient’s continued service on each vesting date.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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The following table presents total stock-based compensation expense by security type included in the unaudited condensed consolidated statements of operations (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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Total $ 3,016 $ 1,984 $ 8,547 $ 6,092

As of June 30, 2021 , unrecognized stock-based compensation expense, net of expected forfeitures, was $ 4.8 million related to unvested stock options, $ 4.7 million related to unvested RSUs and RSAs, $ 1.9 million re lated to unvested PSUs, and $ 3.3 million related to unvested PBOs based on current estimates of the level of achievement.

As of September 30, 2021 , unrecognized stock-based compensation expense, net of expected forfeitures, was $ 4.4 million related to unvested stock options, $ 4.0 million related to unvested RSUs and RSAs, $ 1.5 million re lated to unvested PSUs, and $ 2.6 million related to unvested PBOs based on current estimates of the level of achievement.

Stock-based compensation ex pense for these awards will be recognized through the year o f 2025.

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Exercise of Options

For the six months ended June 30, 2021 and June 30, 2020, we issued 212,631 and 32,749 shares, respectively, upon option exercises at a weighted-average exercise price of $ 8.03 and $ 6.03 per share, respectively, with net cash proceeds of $ 1.7 million and $ 0.2 million, respectively.

For the nine months ended September 30, 2021 and 2020, we issued 422,964 and 87,240 shares, respectively, upon option exercises at a weighted-average exercise price of $ 6.45 and $ 6.17 per share, respectively, with net cash proceeds of $ 2.7 million and $ 0.5 million, respectively.

Equity Distribution Agreement

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With the exception of certain expenses, we will pay PSC up to 8 % of the gross sales price of the shares sold pursuant to the EDA for a combined amount of commission and reimbursement of PSC's expenses and fees.

During the three and six months ended June 30, 2021, no shares of our common stock were issued pursuant to the EDA.

As of June 30, 2021, $ 50.0 million of shares remained available under the EDA.

During the three and nine months ended September 30, 2021, no shares of our common stock were issued pursuant to the EDA.

As of September 30, 2021, $ 50.0 million of shares remained available for sale under the EDA.

Commitments and Contingencies

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Pursuant to the Eighth Amendment, the term of the lease of the Penobscot Space has been extended through May 2027.

The lease term for the 501 Chesapeake Space has been extended to May 2029.

The lease term for the 501 Chesapeake Space has been

extended to May 2029.

We have one (1) option to extend the term of the lease for the Penobscot Space for five ( 5 ) years, and one (1) separate option to extend the term of the lease for the 501 Chesapeake Space for five ( 5 ) years.

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We review the estimated obligation each reporting period and make adjustments if our estimates change.

We recorded asset retirement obligations of $ 0.2 million as of June 30, 2021 and December 31, 2020, which are included in other long-term liabilities in the unaudited condensed consolidated balance sheets.

Accretion expense related to our asset retirement obligations was nominal in the three and six months ended June 30, 2021 and 2020.

We recorded asset retirement obligations of $ 0.3 million as of September 30, 2021 and December 31, 2020, which are included in other long-term liabilities in the unaudited condensed consolidated balance sheets.

Accretion expense related to our asset retirement obligations was nominal in the three and nine months ended September 30, 2021 and 2020.

Pursuant to the terms of the RWC Lease, we exercised our right to deliver a letter of credit in lieu of a security deposit.

The letter of credit is collateralized by deposit balances held by the bank in the amount of $ 1.1 million as of June 30, 2021 and December 31, 2020, and are recorded as non-current restricted cash on the unaudited condensed consolidated balance sheets.

The letter of credit is collateralized by deposit balances held by the bank in the amount of $ 1.0 million as of September 30, 2021 and December 31, 2020 and are recorded as non-current restricted cash on the unaudited condensed consolidated balance sheets.

We entered into a short-term office lease in San Carlos, California during the second quarter of 2021 and this lease will expire in April 2022.

Our remaining future commitment pursuant to this lease is $ 0.1 million as of June 30, 2021.

Our remaining future commitment pursuant to this lease is $ 0.1 million as of September 30, 2021.

Finance Leases

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Lease costs, amounts included in measurement of lease obligations and other information related to non-cancellable operating leases and finance leases were as follows (in thousands):

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2021 2020 2021 2020

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Weighted-average discount rate 6.6 %

Six months ended June 30,

Nine months ended September 30,

Operating cash flows from operating leases $ 3,145 $ 1,795

Financing cash flows from finance leases $ — $ 60

As of June 30, 2021, our maturity analysis of annual undiscounted cash flows of the non-cancellable operating leases are as follows (in thousands):

As of September 30, 2021, our maturity analysis of annual undiscounted cash flows of the non-cancellable operating leases are as follows (in thousands):

Years ending December 31, Operating Leases

2021 (remaining 3 months) $ 1,052

Thereafter 8,626

2026 and thereafter 8,626

Total minimum lease payments 28,146

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63, LLC (“ARE”) to lease a portion of a facility comprising approximately 36,593 rentable square feet in San Carlos, California to serve as additional office and research and development laboratory space (the “San Carlos Space”).

We expect to commence occupancy of the San Carlos Space in November 2021 once tenant improvements are substantially completed by ARE in accordance with the construction plan.

We expect to commence occupancy of the San Carlos Space in December 2021, once tenant improvements are substantially completed by ARE in accordance with the construction plan.

The budget provides a net tenant improvement allowance of $ 6.3 million and an additional allowance of up to $ 2.7 million, which we expect to use.

ARE will have an enforceable right to payment by us in the form of equal monthly additional rent payments at a certain interest rate through the lease term for the additional allowance.

The terms include an initial annualized base rent of $ 2.5 million, subject to scheduled 3 % annual rent increases, an annualized additional allowance

payment of $ 0.4 million, plus certain operating expenses.

The terms include an initial annualized base rent of $ 2.5 million, subject to scheduled 3 % annual rent increases, an annualized additional allowance payment of $ 0.4 million, plus certain operating expenses.

The lease has a 10 -year term from the lease commencement date with one option to extend the term for an additional period of 5 years.

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We have the right to sublease the facility, subject to landlord consent.

We determined that the lease commencement date is in November 2021 at which point we will record a right of use asset and a corresponding lease liability.

We determined that the lease commencement date is in December 2021, at which point we will record a right of use asset and a corresponding operating lease liability.

An estimated maturity analysis of the annual undiscounted cash flows of the lease is as follows (in thousands):

Years ending December 31, Operating Lease

Years ending December 31, Operating Leases

2021 (remaining 3 months) $ —

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The following table provides quantitative data regarding our other commitments.

Future minimum payments reflect amounts that we expect to pay including potential obligations under services agreements subject to risk of cancellation by us (in thousands):

Future minimum payments reflect amounts that we expect to pay including potential obligations under services agreements subject to risk of cancellation by us (in

Other Commitment Agreement Type Agreement Date Future Minimum Payment

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In June 30, 2017, we entered into a credit facility (the “Credit Facility”) with Western Alliance Bank consisting of term loans (“Term Debt”) up to $ 10.0 million, and advances (“Advances”) under a revolving line of credit ("Revolving Line of Credit") up to $ 5.0 million with an accounts receivable borrowing base of 80 % of eligible accounts receivable.

As of June 30, 2021 and December 31, 2020, we have not drawn from the Credit Facility.

We may draw on the Term Debt and the Revolving Line of Credit at any time prior to October 1, 2021 and October 1, 2024, respectively.

As of September 30, 2021 and December 31, 2020, we have not drawn from the Credit Facility.

We may draw on the Term Debt and the Revolving Line of Credit at any time prior to December 31, 2021 and October 1, 2024, respectively.

On October 1, 2024 loans drawn under the Term Debt mature and the Revolving Line of Credit terminate.

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A failure to comply with these covenants could permit the lender to exercise remedies against us and the collateral securing the Credit Facility, including foreclosure of our properties securing the Credit Facilities and our cash.

As of June 30, 2021, we were in compliance with the covenants for the Credit Facility.

As of September 30, 2021, we were in compliance with the covenants for the Credit Facility.

The Credit Facility allows for interest-only payments on the Term Debt through November 1, 2022.

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In April 2021, we purchased an additional 1,000,000 shares of MAI's Series A preferred stock for $ 0.6 million.

We recognized $ 0.3 million and $ 0.5 million in research and development revenue from transactions with MAI in the three and six months ended June 30, 2021, respectively, and we recognized no revenue from research and development service transactions with MAI in the three and six months ended June 30, 2020.

We received 714,171 and 1,428,342 shares of MAI's Series A preferred stock from research and development services we provided to MAI in the three and six months ended June 30, 2021, respectively, and no shares of MAI's Series A preferred stock from research and development services in the three and six months ended June 30, 2020.

As of June 30, 2021, we have 5,443,734 shares of MAI's Series A preferred stock since executing the Stock Purchase Agreement with MAI.

The carrying value of our investment in MAI Series A preferred stock was $ 3.4 million and $ 1.5 million at June 30, 2021 and December 31, 2020, respectively.

We had $ 0.4 million and nil in deferred revenue as of June 30, 2021 and December 31, 2020, respectively, and nil and $ 0.5 million in contract asset due from MAI for services rendered as of June 30, 2021 and December 31, 2020, respectively.

Payment for the services rendered was received in the form of additional MAI Series A preferred stock.

In September 2021, we purchased 9,198,423 shares of MAI's Series B preferred stock for $ 7.0 million.

We recognized $ 0.2 million and $ 0.7 million in research and development revenue from transactions with MAI in the three and nine months ended September 30, 2021, respectively, and we recognized $ 0.5 million of revenue from research and development service transactions with MAI in the three and nine months ended September 30, 2020.

We received 476,114 and 1,904,456 shares of MAI's Series A and B preferred stock from research and development services we provided to MAI in the three and nine months ended September 30, 2021, respectively, and 714,171 shares of MAI's Series A preferred stock from research and development services in the three and nine months ended September 30, 2020.

As of September 30, 2021, we have 15,118,271 shares of MAI's Series A and B preferred stock that we have earned or purchased since executing the Stock Purchase Agreement with MAI.

The carrying value of our investment in MAI Series A and B preferred stock was $ 11.5 million and $ 1.5 million at September 30, 2021 and December 31, 2020, respectively.

We had $ 0.5 million and nil in deferred revenue as of September 30, 2021 and December 31, 2020, respectively, and nil and $ 0.5 million in contract assets due from MAI for services rendered as of September 30, 2021 and December 31, 2020, respectively.

Payment for the services rendered was received in the form of additional MAI Series A and Series B preferred stock.

AstraZeneca PLC

1 unchanged sentence

We sold biocatalyst products to AstraZeneca PLC and its controlled purchasing agents and contract manufacturers.

We recognized $ 20 thousand and $ 0.1 million of revenue from transactions with AstraZeneca and its controlled purchasing agents and contract manufacturers for the three and six months ended June 30, 2020, respectively, and through the date of Ms.

We recogniz ed $ 0.1 million of revenue in 2020 through the date of Ms.

Cheng's departure from our board of directors .

As of June 30, 2021 and December 31, 2020, we had no receivables from AstraZeneca PLC and its controlled purchasing agents and contract manufacturers from related party transactions, respectively.

As of December 31, 2020, we had no receivables from AstraZeneca PLC and its controlled purchasing agents and contract manufacturers.

Segment, Geographical and Other Revenue Information

27 unchanged sentences

The following table provides financial information by our reportable business segments along with a reconciliation to consolidated income (loss) before income taxes (in thousands):

Three months ended June 30, 2021 Three months ended June 30, 2020

Three months ended September 30, 2021 Three months ended September 30, 2020

Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total

13 unchanged sentences

Unallocated depreciation and amortization ( 794 ) ( 528 )

Loss before income taxes $ ( 4,257 ) $ ( 6,037 )

Six months ended June 30, 2021 Six months ended June 30, 2020

Income (loss) before income taxes $ 2,354 $ ( 6,075 )

Nine months ended September 30, 2021 Nine months ended September 30, 2020

Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total

17 unchanged sentences

The following table provides stock-based compensation expense included in income (loss) from operations (in thousands):

Three months ended June 30,

Three months ended September 30,

Performance Enzymes Novel Biotherapeutics Corporate cost Total Performance Enzymes Novel Biotherapeutics Corporate cost Total

Stock-based compensation $ 1,228 $ 272 $ 1,516 $ 3,016 $ 839 $ 132 $ 1,013 $ 1,984

Six months ended June 30,

Nine months ended September 30,

Performance Enzymes Novel Biotherapeutics Corporate cost Total Performance Enzymes Novel Biotherapeutics Corporate cost Total

3 unchanged sentences

Percentage of Total Revenues for the

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2021 2020 2021 2020

5 unchanged sentences

Customer F * * * 11 %

Customer G * * * 13 %

* Percentage was less than 10%

1 unchanged sentence

Percentage of Accounts Receivables as of

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Customer A 34 % *

Customer H 15 % *

Customer B 15 % *

Customer D 14 % 32 %

Customer C 11 % 32 %

Customer E 14 % 13 %

Customer G * 25 %

Customer F * 25 %

2 unchanged sentences

Geographic revenues are identified by the location of the customer and consist of the following (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

4 unchanged sentences

Identifiable long-lived assets by location was as follows (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

United States $ 35,645 $ 31,176

Identifiable goodwill by reporting unit was as follows (in thousands):

As of June 30, 2021 and December 31, 2020

As of September 30, 2021 and December 31, 2020

Performance Enzymes Novel Biotherapeutics Total

2 unchanged sentences

The following table summarizes the financial assets allowance for credit losses (in thousands):

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Allowance for credit losses $ 74 $ 74

The following tables summarize accounts receivable by aging category (in thousands):

June 30, 2021

September 30, 2021

Current 31-60 Days 61-90 Days 91 Days and over Total balance

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements