3 unchanged sentences
(In Thousands, Except Per Share Amounts)
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
Current assets:
1 unchanged sentence
Restricted cash, current 568 579
−Removed: Investment in non-marketable debt security — 1,000
Financial assets:
9 unchanged sentences
Restricted cash 1,519 1,519
−Removed: Investment in non-marketable equity securities 12,763 1,450
+Added: Investment in non-marketable equity securities ($ 12,713 and $ 12,713 with a related party)
+Added: 19,002 14,002
Right-of-use assets - Operating leases, net 42,912 44,095
10 unchanged sentences
Current portion of lease obligations - Operating leases 4,927 4,093
−Removed: Deferred revenue 2,449 1,824
+Added: Deferred revenue ($ 0 and $ 245 to a related party)
Total current liabilities 29,495 33,371
9 unchanged sentences
100,000 shares authorized;
−Removed: 64,833 and 64,283 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
+Added: 65,304 shares and 65,109 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
Additional paid-in capital 554,683 552,083
6 unchanged sentences
(In Thousands, Except Per Share Amounts)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
Product revenue $ 30,690 $ 10,226
−Removed: Research and development revenue 8,038 9,984 26,579 30,018
+Added: Research and development revenue ($ 245 and $ 132 from a related party)
Total revenues 35,340 18,032
4 unchanged sentences
Total costs and operating expenses 43,726 27,187
−Removed: Income (loss) from operations 1,330 ( 6,064 ) ( 12,312 ) ( 19,996 )
+Added: Loss from operations ( 8,386 ) ( 9,155 )
Interest income 42 177
−Removed: Other income (expense), net 983 ( 50 ) 920 ( 125 )
−Removed: Income (loss) before income taxes 2,354 ( 6,075 ) ( 10,968 ) ( 19,759 )
+Added: Other expense, net ( 3 ) ( 88 )
+Added: Loss before income taxes ( 8,347 ) ( 9,066 )
Provision for income taxes 9 2
−Removed: Net income (loss) $ 2,244 $ ( 6,094 ) $ ( 11,089 ) $ ( 20,090 )
−Removed: Net income (loss) per share, basic $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )
−Removed: Net income (loss) per share, diluted $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )
−Removed: Weighted average common stock shares used in computing net income (loss) per share, basic 64,628 59,061 64,452 58,984
−Removed: Weighted average common stock shares used in computing net income (loss) per share, diluted 67,741 59,061 64,452 58,984
−Removed: See accompanying notes to the unaudited condensed consolidated financial statements
−Removed: Codexis, Inc.
−Removed: Condensed Consolidated Statements of Stockholders' Equity
−Removed: (In Thousands)
−Removed: Common Stock Additional
−Removed: Capital Accumulated Deficit Total Stockholders' Equity
−Removed: Three months ended September 30, 2021 Shares Amount
−Removed: Balance as of July 1, 2021 64,623 $ 6 $ 542,519 $ ( 379,752 ) $ 162,773
−Removed: Exercise of stock options 210 — 1,022 — 1,022
−Removed: Employee stock-based compensation — — 2,955 — 2,955
−Removed: Non-employee stock-based compensation — — 61 — 61
−Removed: Net income — — — 2,244 2,244
−Removed: Balance as of September 30, 2021 64,833 $ 6 $ 546,557 $ ( 377,508 ) $ 169,055
−Removed: Common Stock Additional
−Removed: Capital Accumulated Deficit Total Stockholders' Equity
−Removed: Three months ended September 30, 2020 Shares Amount
−Removed: Balance as of July 1, 2020 59,125 $ 6 $ 451,185 $ ( 356,405 ) $ 94,786
−Removed: Exercise of stock options 55 — 342 — 342
−Removed: Release of stock awards 70 — — — —
−Removed: Taxes paid related to net shares settlement of equity awards ( 18 ) — ( 217 ) — ( 217 )
−Removed: Employee stock-based compensation — — 1,941 — 1,941
−Removed: Non-employee stock-based compensation — — 43 — 43
Net loss $ ( 8,356 ) $ ( 9,068 )
−Removed: Balance as of September 30, 2020 59,232 $ 6 $ 453,294 $ ( 362,499 ) $ 90,801
+Added: Net loss per share, basic and diluted $ ( 0.13 ) $ ( 0.14 )
+Added: Weighted average common stock shares used in computing net loss per share, basic and diluted 65,096 64,290
See accompanying notes to the unaudited condensed consolidated financial statements.
4 unchanged sentences
Capital Accumulated Deficit Total Stockholders' Equity
−Removed: Nine months ended September 30, 2021 Shares Amount
+Added: Three Months Ended March 31, 2022 Shares Amount
Balance as of January 1, 2022
+Added: 65,109 $ 6 $ 552,083 $ ( 387,698 ) $ 164,391
Exercise of stock options 78 — 181 — 181
Release of stock awards 190 — — — —
−Removed: Taxes paid related to net shares settlement of equity awards ( 54 ) — ( 1,206 ) — ( 1,206 )
Employee stock-based compensation — — 3,777 — 3,777
Non-employee stock-based compensation — — 61 — 61
+Added: Taxes paid related to net share settlement of equity awards ( 73 ) — ( 1,419 ) — ( 1,419 )
Net loss — — — ( 8,356 ) ( 8,356 )
−Removed: Balance as of September 30, 2021 64,833 $ 6 $ 546,557 $ ( 377,508 ) $ 169,055
+Added: Balance as of March 31, 2022
+Added: 65,304 $ 6 $ 554,683 $ ( 396,054 ) $ 158,635
Common Stock Additional
Capital Accumulated Deficit Total Stockholders' Equity
−Removed: Nine months ended September 30, 2020 Shares Amount
+Added: Three Months Ended March 31, 2021 Shares Amount
Balance as of January 1, 2021
+Added: 64,283 $ 6 $ 536,516 $ ( 366,419 ) $ 170,103
Exercise of stock options 118 — 1,223 — 1,223
Release of stock awards 139 — — — —
−Removed: Taxes paid related to net shares settlement of equity awards ( 102 ) — ( 1,257 ) — ( 1,257 )
Employee stock-based compensation — — 2,626 — 2,626
Non-employee stock-based compensation — — 61 — 61
+Added: Taxes paid related to net share settlement of equity awards ( 52 ) — ( 1,206 ) — ( 1,206 )
Net loss — — — ( 9,068 ) ( 9,068 )
−Removed: Balance as of September 30, 2020 59,232 $ 6 $ 453,294 $ ( 362,499 ) $ 90,801
+Added: Balance as of March 31, 2021
+Added: 64,488 $ 6 $ 539,220 $ ( 375,487 ) $ 163,739
See accompanying notes to the unaudited condensed consolidated financial statements.
1 unchanged sentence
Condensed Consolidated Statements of Cash Flows
−Removed: (Unaudited, in Thousands)
−Removed: Nine Months Ended September 30,
+Added: (In Thousands)
+Added: Three Months Ended March 31,
Operating activities:
4 unchanged sentences
Stock-based compensation 3,838 2,687
−Removed: Allowance for credit losses — 40
−Removed: Equity securities earned from research and development activities ( 675 ) —
−Removed: Unrealized gain on non-marketable securities ( 1,033 ) —
+Added: Equity securities earned from research and development activities from a related party ( 245 ) ( 132 )
Other non-cash items ( 7 ) ( 84 )
11 unchanged sentences
Proceeds from sale of property and equipment 7 17
−Removed: Investment in equity securities ( 7,630 ) ( 1,000 )
+Added: Investment in non-marketable securities ( 5,000 ) —
Net cash used in investing activities ( 10,082 ) ( 2,533 )
2 unchanged sentences
Costs incurred in connection with equity financing ( 42 ) —
−Removed: Payments of lease obligations - Finance leases — ( 60 )
Taxes paid related to net share settlement of equity awards ( 1,419 ) ( 1,206 )
5 unchanged sentences
Interest paid $ 5 $ 3
−Removed: Income taxes paid $ 101 $ 312
Supplemental non-cash investing and financing activities:
Capital expenditures incurred but not yet paid $ 789 $ 579
−Removed: 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:
−Removed: September 30,
+Added: The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets as of March 31, 2022 and 2021 to the total of the same such amounts shown above in the unaudited condensed consolidated statements of cash flows:
Cash and cash equivalents $ 94,260 $ 139,748
7 unchanged sentences
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.
−Removed: We are a pioneer in harnessing computational technologies to drive biology advancements.
−Removed: Since 2002, we have made substantial investments in the development of our CodeEvolver ® protein engineering technology platform.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The core historical application of the technology has been in developing commercially viable biocatalytic manufacturing processes for more sustainable production of complex chemicals.
−Removed: This begins by conceptually designing the most cost-effective and practical process for a targeted product.
−Removed: We then develop optimized biocatalysts to enable the designed process, using our CodeEvolver ® platform.
−Removed: Engineered biocatalyst candidates, numbering many thousands for each project, are then rapidly screened and validated using high throughput methods under process-relevant operating conditions.
−Removed: This approach results in an optimized biocatalyst that enables cost-efficient processes that are relatively simple to run in conventional manufacturing equipment.
−Removed: This also allows for efficient technical transfer of our processes to our manufacturing partners.
−Removed: We initially commercialized our CodeEvolver ® protein engineering technology platform and products in the manufacture of small molecule pharmaceuticals, which remains a primary business focus.
−Removed: Our customers, which include many large, global pharmaceutical companies, use our technology, products and services in their process development and in manufacturing.
−Removed: Additionally, we have licensed our proprietary CodeEvolver ® protein engineering technology platform to global pharmaceutical companies enabling them to use this technology, in house, to engineer enzymes for their own businesses.
−Removed: Most recently, in May 2019, we entered into a Platform Technology Transfer and License Agreement (the “Novartis CodeEvolver ® Agreement”) with Novartis.
−Removed: The Novartis CodeEvolver ® Agreement (our third such agreement with large pharma companies) allows Novartis to use our proprietary CodeEvolver ® protein engineering platform technology in the field of human healthcare.
−Removed: As evidence of our strategy to extend our technology beyond pharmaceutical manufacturing, we have also used the technology to develop biocatalysts and enzyme products for use in a broader set of industrial markets, including several large verticals, such as food, feed, consumer care and fine chemicals.
−Removed: In addition, we are using our technology to develop enzymes for various life science related applications, such as next generation sequencing (“NGS”) and polymerase chain reaction (“PCR/qPCR”) for in vitro molecular diagnostic and genomic research applications.
−Removed: In December 2019, we entered into a license agreement to provide Roche Sequencing Solutions, Inc.
−Removed: with our first enzyme for this target market:
−Removed: the Company’s EvoT4™ DNA ligase.
−Removed: In June 2020, we entered into a co-marketing and enzyme supply collaboration agreement with Alphazyme LLC for the production and co-marketing of enzymes for life science applications including, initially, high-fidelity DNA polymerase, T7 RNA polymerase and reverse transcriptase enzymes.
−Removed: We have been using the CodeEvolver ® protein engineering technology platform to develop early stage, novel biotherapeutic product candidates, both in partnership with customers and for our own proprietary Codexis drug candidates.
−Removed: Our first program was for the potential treatment of phenylketonuria ("PKU") in humans.
−Removed: PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient.
−Removed: 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.
−Removed: (“Nestlé Health Science”) to advance CDX-6114, our enzyme biotherapeutic product candidate for the potential treatment of PKU.
−Removed: In February 2019, Nestlé Health Science exercised its option to obtain an exclusive license to develop and commercialize CDX-6114.
−Removed: Also in October 2017, we entered into a strategic collaboration agreement with Nestlé Health Science (“Nestlé SCA”) pursuant to which we and Nestlé Health Science are collaborating to leverage the CodeEvolver ® platform technology to develop other novel enzymes for Nestlé Health Science’s established Consumer Care and Medical Nutrition business areas.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: In April 2021, we purchased an additional 1,000,000 shares of MAI's Series A preferred stock for $ 0.6 million.
−Removed: 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).
−Removed: See Note 12 "Segment, Geographical and Other Revenue Information" for additional information.
−Removed: Below are brief descriptions of our business segments:
−Removed: Performance Enzymes
−Removed: We initially commercialized our CodeEvolver ® protein engineering technology platform and products in the manufacture of small molecule pharmaceuticals and, to date, this continues to be our largest market served.
−Removed: Our customers, which include many large global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development.
−Removed: We have also used the technology to develop customized enzymes for use in other industrial markets.
−Removed: These markets consist of several large industrial verticals, including food, feed, consumer care, and fine chemicals.
−Removed: We also use our technology in the life sciences markets to develop enzymes for customers using NGS and PCR/qPCR for in vitro molecular diagnostic and molecular biology research applications, as well DNA/RNA synthesis and health monitoring applications.
−Removed: Novel Biotherapeutics
−Removed: We are also targeting new opportunities in the pharmaceutical industry to discover, improve, and/or develop biotherapeutic drug candidates.
−Removed: We believe that our CodeEvolver ® protein engineering platform technology can be used to discover novel biotherapeutic drug candidates that will target human diseases that are in need of improved therapeutic interventions.
−Removed: Similarly, we believe that we can deploy our platform technology to improve specific characteristics of a customer’s pre-existing biotherapeutic drug candidate, such as its activity, stability or immunogenicity.
−Removed: Our first lead program was for the potential treatment of PKU in humans.
−Removed: PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient.
−Removed: In October 2017, we announced a global development, option and license agreement with Nestlé Health Science to advance CDX-6114, our own novel orally administrable enzyme therapeutic candidate for the potential treatment of PKU.
−Removed: 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.
−Removed: Upon exercising its option, Nestlé Health Science assumed all responsibilities for future clinical development and commercialization of CDX-6114.
−Removed: In October 2017, we entered into the Nestlé SCA pursuant to which we and Nestlé Health Science are collaborating to leverage the CodeEvolver ® platform technology to develop other novel enzymes for Nestlé Health Science’s established Consumer Care and Medical Nutrition business areas.
−Removed: The Nestlé SCA was extended through December 2021.
−Removed: 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.
−Removed: 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.
−Removed: Additionally, the parties are progressing three programs under the Nestlé SCA targeting different gastrointestinal disorders.
−Removed: In March 2020, we entered into the Takeda Agreement pursuant to which we are collaborating to research and develop protein sequences for use in gene therapy products for certain disease indications in accordance with the respective program plans for Fabry Disease, Pompe Disease, and an undisclosed blood factor deficiency.
−Removed: In March 2020, we received a one-time, non-refundable cash payment of $ 8.5 million.
−Removed: Of these programs, the Fabry disease program is the most advanced, with multiple sequences, including CDX-6311, having been provided to Takeda.
−Removed: In May 2021, Takeda elected to exercise their option to expand the collaboration into a fourth program for an undisclosed rare genetic disorder.
+Added: We report our financial results based on two reportable segments:
+Added: Performance Enzymes and Novel Biotherapeutics.
+Added: The segment information aligns with how the chief operating decision maker (CODM), who is our Chief Executive Officer (CEO), reviews and manages the business.
Business Update Regarding COVID-19
2 unchanged sentences
economy and other economies worldwide.
−Removed: The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition will depend on future developments that are highly uncertain and may not be accurately predicted, including the duration and severity of the pandemic and the extent and severity of the impact on our customers, new information that may emerge concerning COVID-19, the actions taken to contain it or treat its impact and the economic impact on local, regional, national and international markets.
+Added: The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition will depend on future developments that are highly uncertain and may not be accurately predicted, including the duration and severity of the pandemic, the prevalence of more contagious and or virulent variants such as the Delta and Omicron variants, and the extent and severity of the impact on our customers, new information that may emerge concerning COVID-19, the actions taken to contain it or treat its impact and the economic impact on local, regional, national and international markets.
To date, we and our collaboration partners have been able to continue to supply our enzymes to our customers worldwide.
However, we are dependent on our manufacturing and logistics partners and consequently, disruptions in operations of our partners and customers may affect our ability to supply enzymes to our customers.
−Removed: 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.
−Removed: We believe that these disruptions have had a minimal impact on revenue for the three and nine months ended September 30, 2021.
+Added: Furthermore, our ability to provide future R&D services may continue to be impacted as a result of governmental orders ("Orders") and any disruptions in operations of our customers with whom we collaborate.
+Added: We believe that these disruptions have had a minimal impact on revenue for the three months ended March 31, 2022.
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.
−Removed: 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 disrupted our R&D operations in 2020.
−Removed: R&D operations for several projects were temporarily suspended from mid-March 2020 through the end of April 2020 in accordance with these Orders.
−Removed: 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.
−Removed: Additionally, we resumed manufacturing at our Redwood City pilot plant in May 2020.
−Removed: Our future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that we may undertake to address financial and operations challenges faced by our customers.
−Removed: The near and long term impact of COVID-19 to our financial condition, liquidity, or results of operations in the future remains uncertain.
−Removed: 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.
Basis of Presentation and Summary of Significant Accounting Policies
3 unchanged sentences
The condensed consolidated balance sheet at December 31, 2021 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.
−Removed: 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.
+Added: The significant accounting policies used in preparation of the unaudited condensed consolidated financial statements for the three months ended March 31, 2022 and 2021, are consistent with those discussed in Note 2 to the audited consolidated financial statements in the Company’s 2021 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, 2021.
−Removed: 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 operations.
−Removed: 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.
+Added: 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 March 31, 2022, results of our operations for the three months ended March 31, 2022 and 2021, changes in stockholders' equity for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021.
The interim results are not necessarily indicative of the results for any future interim period or for the entire year.
9 unchanged sentences
Recently adopted accounting pronouncements
−Removed: In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU No.
−Removed: 2019-12, Income Taxes (Topic 740):
−Removed: Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes.
−Removed: We adopted the standard on January 1, 2021, on a modified retrospective basis.
−Removed: The adoption of this standard had no impact on our Unaudited Condensed Consolidated Financial Statements.
−Removed: In October 2020, the FASB issued ASU No.
−Removed: 2020-10, Codification Improvement s.
−Removed: ASU 2020-10 provides amendments to a wide variety of topics in the FASB’s Accounting Standards Codification, which applies to all reporting entities within the scope of the affected accounting guidance.
−Removed: We adopted the standard on January 1, 2021 on a retrospective basis.
−Removed: The adoption of this standard had no impact on our Unaudited Condensed Consolidated Financial Statements.
−Removed: Recently issued accounting pronouncements not yet adopted
−Removed: From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date.
−Removed: Unless otherwise discussed, we believe that the recently issued standards that are not yet effective will not have a material impact on our Unaudited Condensed Consolidated Financial Statements upon adoption.
In May 2021, FASB issued ASU No.
1 unchanged sentence
The standard establishes a principles-based framework in accounting for modifications of freestanding equity-classified written call options on the basis of the economic substance of the underlying transaction.
−Removed: The standard also requires incremental financial statement disclosures.
+Added: The standard also requires increment al financial statement disclosures.
The standard affects entities that present earnings per share in accordance with the guidance in Topic 260, Earnings Per Share.
−Removed: The standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years with early adoption is permitted by applying the standard as of the beginning of the fiscal year that includes that interim period.
−Removed: The standard may be adopted prospectively for modifications or exchanges occurring on or after the effective date.
−Removed: We will evaluate modifications of equity-classified written call options to determine applicability of the standard on occurrence;
−Removed: 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.
−Removed: In August 2020, FASB issued ASU No.
−Removed: 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) No.
+Added: We adopted the standard on January 1, 2022 on a prospective basis.
+Added: The adoption of this standard had no impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.
+Added: In August 2020, FASB issued ASU No 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) No.
2020-06 August 2020 Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , to reduce the complexity and to simplify the accounting for convertible debt instruments and convertible preferred stock, and the derivatives scope exception for contracts in an entity's own equity.
In addition, the guidance on calculating diluted earnings per share has been simplified and made more internally consistent.
−Removed: The standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years with early adoption permitted for fiscal years beginning December 15, 2020.
−Removed: 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.
−Removed: We believe that the adoption of ASU 2020-06 will have no significant impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.
−Removed: In March 2020, the FASB issued ASU No.
−Removed: 2020-04, Reference Rate Reform (Topic 848):
+Added: We adopted the standard on January 1, 2022 on a modified retrospective basis.
+Added: The adoption of this standard had no impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.
+Added: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) :
Facilitation of the Effects of Reference Rate Reform on Financial Reporting .
The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions in which the reference LIBOR or another reference rate are expected to be discontinued as a result of the Reference Rate Reform.
−Removed: The standard is effective for all entities and can be adopted no later than December 1, 2022, with early adoption permitted.
−Removed: The standard may be adopted on a prospective basis.
−Removed: 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;
−Removed: 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.
−Removed: 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.
+Added: We adopted the standard on January 1, 2022 on a prospective basis.
+Added: The adoption of this standard had no significant impact on our Unaudited Condensed Consolidated Financial Statements and related disclosures.
+Added: Recently issued accounting pronouncements not yet adopted
+Added: There have been no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2022 that are of significance or potential significance to us.
Revenue Recognition
3 unchanged sentences
Segment information is as follows (in thousands):
−Removed: Three months ended September 30, 2021 Three months ended September 30, 2020
−Removed: Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
−Removed: Major products and service:
−Removed: Product revenue $ 28,731 $ — $ 28,731 $ 8,401 $ — $ 8,401
−Removed: Research and development revenue 3,853 4,185 8,038 4,604 5,380 9,984
−Removed: Total revenues $ 32,584 $ 4,185 $ 36,769 $ 13,005 $ 5,380 $ 18,385
−Removed: Primary geographical markets:
−Removed: $ 5,999 $ 1,817 $ 7,816 $ 3,209 $ 2,632 $ 5,841
−Removed: 2,317 2,368 4,685 2,141 2,748 4,889
−Removed: 24,268 — 24,268 7,655 — 7,655
−Removed: Total revenues $ 32,584 $ 4,185 $ 36,769 $ 13,005 $ 5,380 $ 18,385
−Removed: Nine months ended September 30, 2021 Nine months ended September 30, 2020
+Added: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
10 unchanged sentences
The following table presents balances of contract assets, unbilled receivables, contract costs, and contract liabilities (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
Contract assets $ 9,751 $ 4,557
3 unchanged sentences
deferred revenue $ 5,068 $ 6,335
−Removed: We had no asset impairment charges related to financial assets in the three and nine months ended September 30, 2021 and 2020.
−Removed: The increase in contract assets was primarily due to increase in product revenue from contracts subject to over time
−Removed: revenue recognition.
−Removed: The nominal decrease in unbilled receivables was primarily due to the timing of billings.
−Removed: The increase in deferred revenue was primarily due to cash advances received in excess of revenue recognized.
−Removed: We recognized the following revenues (in thousands):
−Removed: Three months ended September 30, Nine months ended September 30,
+Added: We ha d no a sset impairment charges related to financial assets in the three months ended March 31, 2022 and 2021.
+Added: The increase in contract assets was primarily due to increases in product revenue from contracts subject to over time revenue recognition.
+Added: The increase in unbilled receivables was primarily due to the timing of billings.
+Added: The decrease in deferred revenue was primarily due to timing of recognition of revenue.
+Added: We recognized t he following revenues ( in thousands):
+Added: Three Months Ended March 31,
Revenue recognized in the period for:
−Removed: 2021 2020 2021 2020
Amounts included in contract liabilities at the beginning of the period:
6 unchanged sentences
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.
−Removed: 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 September 30, 2021.
−Removed: 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 September 30, 2021 (in thousands):
−Removed: Remainder of 2021 2022 2023 2024 and Thereafter Total
+Added: 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 March 31, 2022.
+Added: Th e 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 March 31, 2022 (in thousands):
+Added: Remainder of 2022
+Added: 2023 2024 2025 and Thereafter
Product revenue $ 60 $ 67 $ 100 $ 2,740 $ 2,967
1 unchanged sentence
Total revenues $ 1,314 $ 914 $ 100 $ 2,740 $ 5,068
−Removed: N et Income (loss) per S hare
−Removed: 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.
−Removed: 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.
+Added: N et Loss per S hare
+Added: 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.
+Added: 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.
+Added: For all periods presented, net loss per share, basic and diluted, are identical since potential common stock shares are excluded from the calculation, as their effect was anti-dilutive.
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.
−Removed: 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):
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2021 2020 2021 2020
−Removed: Net income (loss) $ 2,244 $ ( 6,094 ) $ ( 11,089 ) $ ( 20,090 )
−Removed: Weighted average common stock shares used in computing net income (loss) per share, basic 64,628 59,061 64,452 58,984
−Removed: Effect of dilutive shares 3,113 — — —
−Removed: Weighted average common stock shares used in computing net income (loss) per share, diluted 67,741 59,061 64,452 58,984
−Removed: Net income (loss) per share, basic $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )
−Removed: Net income (loss) per share, diluted $ 0.03 $ ( 0.10 ) $ ( 0.17 ) $ ( 0.34 )
−Removed: The following shares were not considered in the computation of diluted net income (loss) per share because their effect was anti-dilutive (in thousands):
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2021 2020 2021 2020
+Added: The following shares were not considered in the computation of diluted net loss per share because their effect was anti-dilutive (in thousands):
+Added: Three Months Ended March 31,
Shares issuable under the Equity Incentive Plan 5,899 5,497
6 unchanged sentences
Realized gains or losses are recorded as a component of other income (expense), net.
−Removed: In November 2020, we purchased convertible subordinated notes issued by Arzeda Corp., an early-stage computational protein design company, for $ 1.0 million.
−Removed: 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.
+Added: In November 2020, we purchased convertible subordinated notes issued by Arzeda Corp.
+Added: (“Arzeda”), an early-stage computational protein design company, for $ 1.0 million and the investment was classified as available-for-sale non-marketable interest-bearing debt securities.
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.
−Removed: 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.
−Removed: We recognized no unrealized or realized gains or losses during the three and nine months ended September 30, 2021.
−Removed: We recognized no interest income, other expenses, and unrealized or realized gains or losses during the three and nine months ended September 30, 2020.
−Removed: There were no investments in non-marketable debt securities at September 30, 2021.
−Removed: 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):
−Removed: December 31, 2020
−Removed: Adjusted Cost and Carrying Value Fair Value
−Removed: Non-marketable debt security due in 1 year or less $ 1,000 $ 1,000
−Removed: Non-Marketable Equity Securities
−Removed: Non-marketable equity securities are investments in privately held companies without readily determinable market value.
−Removed: 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.
−Removed: 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.
−Removed: We measured our equity investments in MAI and Arzeda Corp.
−Removed: 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.
−Removed: 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.
−Removed: We recognized no unrealized or realized gain or losses d uring the three and nine months ended September 30, 2020.
−Removed: 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.
−Removed: The carrying value of our investment in Arzeda Corp.
−Removed: was $ 1.3 million at September 30, 2021.
−Removed: The following table presents balances of the carrying value of non-marketable equity securities (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: During the three months ended March 31, 2021, we recognized $ 0.1 million in interest income from interest earned on our investment in this debt security.
+Added: There were no investments in non-marketable debt securities as of March 31, 2022 and December 31, 2021.
Non-Marketable Equity Securities
+Added: In March 2022, we entered into a Stock Purchase Agreement with seqWell, Inc.
+Added: (“seqWell”), a privately held biotechnology company, pursuant to which we purchased 1,000,000 shares of seqWell's Series C preferred stock for $ 5.0 million.
+Added: Our non-marketable equity securities are investments in privately held companies without readily determinable market value and primarily relate to our investments in Molecular Assemblies, Inc.
+Added: (“MAI“), Arzeda and seqWell.
+Added: These investments are accounted for under the measurement alternative and are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.
+Added: Non-marketable equity securities are measured at fair value on a non-recurring basis and classified within Level 2 in the fair value hierarchy because we estimate the fair value of these investments using the observable transaction price paid by third party investors for the same or similar security of the same issuers.
+Added: 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 in the unaudited condensed consolidated statements of operations.
+Added: There was no remeasurement event for our investments in MAI, Arzeda and seqWell that occurred during the three months ended March 31, 2022 and 2021.
+Added: We recognized no realized gains or losses during the three months ended March 31, 2022 and 2021.
+Added: The following table presents the carrying value of our non-marketable equity securities (in thousands):
+Added: March 31, 2022 December 31, 2021
+Added: MAI $ 12,713 $ 12,713
+Added: seqWell 5,000 —
+Added: Arzeda 1,289 1,289
+Added: Total non-marketable equity securities $ 19,002 $ 14,002
Fair Value Measurements
−Removed: The following tables present the financial instruments that were measured at fair value on a recurring basis within the fair value hierarchy (in thousands):
−Removed: September 30, 2021
+Added: The following tables present the financial instruments that were measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021 by level within the fair value hierarchy (in thousands):
+Added: March 31, 2022
Level 1 Level 2 Level 3 Total
3 unchanged sentences
Money market funds $ 86,095 $ — $ — $ 86,095
−Removed: Non-marketable debt security — — 1,000 1,000
−Removed: Total $ 127,567 $ — $ 1,000 $ 128,567
−Removed: 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.
+Added: During the three months ended March 31, 2022 and 2021, 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
−Removed: Cash equivalents as of September 30, 2021 and December 31, 2020, consisted of the following (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: Cash equivalents as of March 31, 2022 and December 31, 2021, consisted of the following (in thousands):
+Added: March 31, 2022 December 31, 2021
Adjusted Cost Estimated Fair Value Adjusted Cost Estimated Fair Value
1 unchanged sentence
$ 72,107 $ 72,107 $ 86,095 $ 86,095
−Removed: (1) Money market funds are classified in cash and cash equivalents on our consolidated balance sheets.
+Added: (1) Money market funds are classified in cash and cash equivalents on our unaudited condensed consolidated balance sheets.
Average contractual maturities (in days) is not applicable.
−Removed: 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.
−Removed: 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.
+Added: As of March 31, 2022, the total cash and cash equivalents balance of $ 94.3 million consisted of money market funds of $ 72.1 million and cash of $ 22.2 million held with major financial institutions.
+Added: As of December 31, 2021, the total cash and cash equivalents balance of $ 116.8 million consisted of money market funds of $ 86.1 million and cash of $ 30.7 million held with major financial institutions.
Inventories consisted of the following (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
Raw materials $ 49 $ 49
2 unchanged sentences
Inventories $ 1,560 $ 1,160
−Removed: Inventories are recorded net of reserves of $ 1.5 million as of September 30, 2021 and December 31, 2020.
+Added: Inventories are recorded net of reserves o f $ 1.4 million a s of March 31, 2022 and December 31, 2021.
Property and Equipment, net
Property and equipment, net consisted of the following (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
Laboratory equipment $ 36,435 $ 33,101
6 unchanged sentences
Property and equipment, net $ 23,474 $ 21,345
−Removed: Depreciation expense included in the Unaudited Condensed Consolidated Statements of Operations was follows (in thousands):
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Depreciation expense included in both research and development expenses and selling, general and administrative expenses in the unaudited condensed consolidated statements of operations was as follows (in thousands):
+Added: Three Months Ended March 31,
Depreciation expense $ 1,215 $ 659
−Removed: Goodwill had a carrying value of $ 3.2 million as of September 30, 2021 and December 31, 2020.
+Added: Goodwill had a carrying value of $ 3.2 million as of March 31, 2022 and December 31, 2021.
Other Accrued Liabilities
Other accrued liabilities consisted of the following (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
Accrued purchases $ 7,695 $ 6,755
8 unchanged sentences
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.
−Removed: 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”).
+Added: 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;
+Added: 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”).
14 unchanged sentences
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.
−Removed: When the performance goals are deemed to be probable of achievement for these types of awards, recognition of stock-based
−Removed: compensation expense commences.
+Added: 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.
4 unchanged sentences
Achievement below the threshold level would result in no shares being eligible to vest in respect of the PSUs and PBOs.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: In the first quarter of 2021, we determined that the 2020 PSUs and 2020 PBOs performance goals had been achieved at 88 % of the target level, and recognized expenses accordingly.
+Added: In the first quarter of 2022, we awarded PSUs ("2022 PSUs") and PBOs ("2022 PBOs"), each of which commence vesting based upon the achievement of various weighted performance goals, including total revenues, research and development revenue, product revenue excluding sales of CDX-616 to Pfizer for use in the manufacture of a critical intermediate for its proprietary active pharmaceutical ingredient, nirmatrelvir, which Pfizer markets, sells and distributes, in combination with the active pharmaceutical ingredient ritonavir, as its PAXLOVID™ product, operating expenses excluding cost of product revenue, strategic performance enzyme deliverables, strategic biotherapeutics deliverables, organization and infrastructure upgrades, corporate developments, and significant events that can be publicly announced.
+Added: As of March 31, 2022, we estimated that the 2022 PSUs and 2022 PBOs performance goals would be achieved at 100 % and 50 % of the target level, respectively, and recognized stock-based compensation expenses accordingly.
+Added: In 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 total revenues, product revenue, performance enzymes pipeline advancements, biotherapeutics pipeline advancements, organization and infrastructure upgrades, and significant events that can be publicly announced.
+Added: In the first quarter of 2022, we determined that the 2021 PSUs and 2021 PBOs performance goals had been achieved at 146 % and 73 % of the target level, respectively, and recognized stock-based compensation expenses accordingly.
Accordingly, 50 % of the shares underlying the 2021 PSUs and PBOs vested in the first quarter of 2022 and 50 % of the shares underlying the 2021 PSUs and PBOs will vest in the first quarter of 2023, in each case , subject to the recipient’s continued service on each vesting date.
−Removed: In 2019, we awarded PSUs ("2019 PSUs") and PBOs ("2019 PBOs"), each of which commenced vesting based upon the achievement of various weighted performance goals, including sustained revenue and performance enzyme growth, strategic advancement of biotherapeutics, cash balance and strategic plan development.
−Removed: 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.
+Added: 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 total revenues, performance enzyme segment gross margin, major new biotherapeutics publicity events, strategic performance enzyme and biotherapeutics deliverables, and strategic plan development.
+Added: In the first quarter of 2021, we determined that the 2020 PSUs and 2020 PBOs performance goals had been achieved at 88 % and 44 % of the target level, respectively, and recognized stock-based compensation expenses accordingly.
Accordingly, 50 % of the shares underlying the 2020 PSUs and PBOs vested in the first quarter of 2021 and 50 % of the shares underlying the 2020 PSUs and PBOs vested in the first quarter of 2022, in each case subject to the recipient’s continued service on each vesting date.
1 unchanged sentence
Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
Research and development $ 936 $ 477
2 unchanged sentences
The following table presents total stock-based compensation expense by security type included in the unaudited condensed consolidated statements of operations (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
Stock options $ 806 $ 665
RSUs and RSAs 1,162 542
−Removed: PSUs 640 295 1,683 922
PBOs 998 1,010
Total $ 3,838 $ 2,687
−Removed: 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.
−Removed: Stock-based compensation ex pense for these awards will be recognized through the year o f 2025.
+Added: As of March 31, 2022, unr ecognized stock-based compensation expense, net of expected forfeitures, was $ 6.6 million related to unvested stock options, $ 9.2 million related to unvested RSUs and RSAs, $ 2.5 million related to unvested PSUs, and $ 4.5 million related to unvested PBOs based on current estimates of the level of achievement.
+Added: Stock-based compensation expense for these awards will be recognized through the year 2026.
Capital Stock
Exercise of Options
−Removed: 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.
+Added: For the three months ended March 31, 2022 and March 31, 2021, we issued 77,600 and 118,437 shares, respectively, upon option exercises at a weighted-average exercise price of $ 2.33 and $ 10.33 per share, respectively, with net cash proceeds of $ 0.2 million and $ 1.2 million, respectivel y.
Equity Distribution Agreement
10 unchanged sentences
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.
−Removed: During the three and nine months ended September 30, 2021, no shares of our common stock were issued pursuant to the EDA.
−Removed: As of September 30, 2021, $ 50.0 million of shares remained available for sale under the EDA.
+Added: During the three months ended March 31, 2022, no shares of our common stock were issued pursuant to the EDA.
+Added: As of March 31, 2022, $ 50.0 million worth of shares remained available for sale under the EDA.
Commitments and Contingencies
2 unchanged sentences
Our lease agreement with MetLife ("RWC Lease") includes approximately 28,200 square feet of space located at 200 and 220 Penobscot Drive, Redwood City, California (the “200/220 Penobscot Space”) and approximately 37,900 square feet of space located at 400 Penobscot Drive, Redwood City, California (the “400 Penobscot Space”) (the 200/220 Penobscot Space and the 400 Penobscot Space are collectively referred to as the “Penobscot Space”), and approximately 11,200 square feet of space located at 501 Chesapeake Drive, Redwood City, California (the “501 Chesapeake Space”).
−Removed: Until the end of January 2020, we also leased approximately 29,900 square feet of space located at 101 Saginaw Drive, Redwood City, California (the “Saginaw Space”).
−Removed: During January 2020, we subleased approximately 26,500 square feet of the Saginaw Space to Minerva Surgical, Inc.
−Removed: The lease and sublease for the Saginaw Space both expired at the end of January 2020.
−Removed: During the period from February 1, 2020 through April 30, 2020, we subleased approximately 3,400 square feet at 101 Saginaw Drive from Minerva Surgical, Inc.
−Removed: The sublease expired at the end of April 2020.
We entered into the initial lease with MetLife for our facilities in Redwood City in 2004 and the RWC Lease has been amended multiple times since then to adjust the leased space and terms of the Lease.
1 unchanged sentence
Pursuant to the Eighth Amendment, the term of the lease of the Penobscot Space has been extended through May 2027.
−Removed: The lease term for the 501 Chesapeake Space has been
−Removed: extended to May 2029.
+Added: 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.
−Removed: We are required to restore certain areas of the Redwood City facilities that we are renting to their original form.
+Added: Pursuant to the terms of the RWC Lease, we exercised our right to deliver a letter of credit in lieu of a security deposit.
+Added: The letter of credit is collateralized by deposit balances held by the bank in the amount of $ 1.1 million a s of March 31, 2022 and December 31, 2021, and are recorded as non-current restricted cash on the unaudited condensed consolidated balance sheets.
+Added: In January 2021, we entered into a lease agreement with ARE-San Francisco No.
+Added: 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”).
+Added: 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.
+Added: The lease has a 10 -year term from the lease commencement date of November 30, 2021 with one option to extend the term for an additional period of 5 years.
+Added: We have provided ARE with a $ 0.5 million security deposit in the form of a letter of credit and we commenced occupancy of the San Carlos Space in December 2021.
+Added: We have the right to sublease the facility, subject to landlord consent.
+Added: We entered into a short-term office lease in San Carlos, California during the second quarter of 2021 and this lease expired in April 2022.
+Added: Our remaining future commitment pursuant to this lease is nominal as of March 31, 2022.
+Added: We are required to restore certain areas of the Redwood City and San Carlos facilities that we are renting to their original form.
We are expensing the asset retirement obligation over the terms of the respective leases.
We review the estimated obligation each reporting period and make adjustments if our estimates change.
−Removed: 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.
−Removed: Accretion expense related to our asset retirement obligations was nominal in the three and nine months ended September 30, 2021 and 2020.
−Removed: Pursuant to the terms of the RWC Lease, we exercised our right to deliver a letter of credit in lieu of a security deposit.
−Removed: 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.
−Removed: 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.
−Removed: Our remaining future commitment pursuant to this lease is $ 0.1 million as of September 30, 2021.
−Removed: Finance Leases
−Removed: In December 2016, we entered into a three-year financing lease agreement with a third party supplier for the purchase of laboratory equipment that was partially financed through a finance lease of $ 0.4 million.
−Removed: The lease became effective upon delivery of the equipment in February 2017, and the term of the three-year lease was from February 2017 and expired in February 2020.
−Removed: This financing agreement was accounted for as a finance lease due to bargain purchase options at the end of the lease.
−Removed: In April 2017, we entered into a three-year financing lease agreement with a third-party supplier for the purchase of information technology equipment for $ 0.3 million.
−Removed: The effective term of the three-year lease was from May 2017 and expired in April 2020.
+Added: We recorded asset retirement obligations of $ 0.5 million an d $ 0.4 million as of March 31, 2022 and December 31, 2021, respectively, which are included in other liabilities on the unaudited condensed consolidated balance sheets.
+Added: Accretion expense related to our asset retirement obligations was nominal in the three months ended March 31, 2022 and 2021.
Lease and other information
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):
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2021 2020 2021 2020
−Removed: Finance lease costs:
−Removed: Amortization of right-of-use assets $ 26 $ 27 $ 79 $ 126
−Removed: Interest on lease obligations — — — 1
+Added: Three Months Ended March 31,
Finance lease costs 18 26
1 unchanged sentence
Short-term lease costs (1)
−Removed: Sublease income — — — ( 55 )
Total lease cost (2)
6 unchanged sentences
Weighted-average discount rate 5.5 %
−Removed: Nine months ended September 30,
+Added: Three Months Ended March 31,
Operating cash flows from operating leases $ 1,022 $ 1,042
−Removed: Financing cash flows from finance leases $ — $ 60
−Removed: As of September 30, 2021, our maturity analysis of annual undiscounted cash flows of the non-cancellable operating leases are as follows (in thousands):
+Added: As of March 31, 2022, 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
4 unchanged sentences
Lease obligations $ 47,281
−Removed: Future Lease Commitment
−Removed: In the first quarter of 2021, we entered into a lease agreement with ARE-San Francisco No.
−Removed: 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”).
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: We have provided ARE with a $ 0.5 million security deposit in the form of a letter of credit.
−Removed: We have the right to sublease the facility, subject to landlord consent.
−Removed: 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.
−Removed: An estimated maturity analysis of the annual undiscounted cash flows of the lease is as follows (in thousands):
−Removed: Years ending December 31, Operating Leases
−Removed: 2021 (remaining 3 months) $ —
−Removed: 2026 and thereafter 20,061
−Removed: Total minimum lease payments $ 31,723
Other Commitments
5 unchanged sentences
The following table provides quantitative data regarding our other commitments.
−Removed: Future minimum payments reflect amounts that we expect to pay including potential obligations under services agreements subject to risk of cancellation by us (in
+Added: 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):
Other Commitment Agreement Type Agreement Date Future Minimum Payment
−Removed: Manufacture and supply agreement with expected future payment date of December 2022 April 2016 $ 147
−Removed: Development and manufacturing services agreements September 2019 686
+Added: Development and manufacturing services agreements Various $ 5,111
+Added: Facility maintenance agreement January 2022 1,462
Total other commitments $ 6,573
1 unchanged sentence
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.
−Removed: As of September 30, 2021 and December 31, 2020, we have not drawn from the Credit Facility.
−Removed: 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.
−Removed: On October 1, 2024 loans drawn under the Term Debt mature and the Revolving Line of Credit terminate.
−Removed: Loans made under the Term Debt bear interest through maturity equal to the greater of (i) 3.75 % or (ii) the sum of (A) Index Rate (prime rate published in the Money Rates section of the Western Edition of The Wall Street Journal plus (B) 0.50 %.
−Removed: Advances made under the Revolving Line of Credit bear interest at a variable annual rate equal to the equal to the greater of (i) 4.25 % or (ii) the sum of (A) the prime rate plus (B) 1.00 %.
+Added: The right to take draws on the Term Debt expired on December 31, 2021.
+Added: On October 1, 2024, loans drawn under the Revolving Line of Credit terminate.
+Added: Advances made under the Revolving Line of Credit bear interest at a variable annual rate equal to the greater of (i) 4.25 % or (ii) the sum of (A) the prime rate plus (B) 1.00 %.
+Added: As of March 31, 2022 and December 31, 2021, we have not drawn from the Credit Facility.
Our obligations under the Credit Facility are secured by a lien on substantially all of our personal property other than our intellectual property.
2 unchanged sentences
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.
−Removed: As of September 30, 2021, we were in compliance with the covenants for the Credit Facility.
−Removed: The Credit Facility allows for interest-only payments on the Term Debt through November 1, 2022.
−Removed: Monthly payments of principal and interest on the Term Debt are required following the applicable amortization date.
−Removed: We may elect to prepay in full the Term Debt and Advances under the Revolving Line of Credit at any time.
+Added: As of March 31, 2022, we were in compliance with the covenants for the Credit Facility.
Legal Proceedings
−Removed: We are not currently a party to any material pending litigation or other material legal proceedings.
+Added: We may be involved in legal actions in the ordinary course of business, including inquiries and proceedings concerning business practices and intellectual property infringement, employee relations and other claims.
+Added: We will recognize a loss contingency in the condensed consolidated financial statements when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated.
+Added: We will disclose any loss contingencies that do not meet both conditions if there is a reasonable possibility that a material loss may have been incurred.
+Added: Gain contingencies are not recorded until they are realized.
+Added: In April 2022, we reached a settlement resolving a non-material dispute involving the Company's trademark.
+Added: The terms of the settlement are not material to the business or the results of operations of the Company.
Indemnifications
9 unchanged sentences
In connection with the transaction, John Nicols, our President and Chief Executive Officer, also joined MAI’s board of directors.
−Removed: Concurrently with our initial equity investment, we entered into the MAI Agreement with MAI, pursuant to which we are performing services utilizing our CodeEvolver ® protein engineering platform technology to improve DNA polymerase enzymes in exchange for compensation in the form of additional shares of MAI's Series A preferred stock.
−Removed: In April 2021, we purchased an additional 1,000,000 shares of MAI's Series A preferred stock for $ 0.6 million.
−Removed: In September 2021, we purchased 9,198,423 shares of MAI's Series B preferred stock for $ 7.0 million.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Payment for the services rendered was received in the form of additional MAI Series A and Series B preferred stock.
−Removed: AstraZeneca PLC
−Removed: Cheng, who served as a member of our board of directors until June 2020, joined AstraZeneca PLC as Executive Vice President, Operations and Information Technology in June 2015.
−Removed: We sold biocatalyst products to AstraZeneca PLC and its controlled purchasing agents and contract manufacturers.
−Removed: We recogniz ed $ 0.1 million of revenue in 2020 through the date of Ms.
−Removed: Cheng's departure from our board of directors .
−Removed: As of December 31, 2020, we had no receivables from AstraZeneca PLC and its controlled purchasing agents and contract manufacturers.
+Added: Concurrently with our initial equity investment, we entered into a Master Collaboration and Research Agreement with MAI (the “MAI Agreement”), pursuant to which we are leveraging our CodeEvolver ® protein engineering platform technology to improve the DNA polymerase enzymes that are critical for enzymatic DNA synthesis.
+Added: Under the MAI Agreement, we are performing services utilizing our CodeEvolver ® protein engineering platform technology to improve DNA polymerase enzymes in exchange for compensation in the form of additional shares of MAI's Series A preferred stock.
+Added: We completed the R&D service with MAI pursuant to the MAI Agreement during the first quarter of 2022.
+Added: In December 2021, we received the primary milestone payment pursuant to the MAI Agreement of $ 1.0 million in the form of an additional 1,587,049 shares of Series B preferred stock.
+Added: In addition to our initial equity investment and the shares we have received under the MAI Agreement, in April 2021, we purchased an additional 1,000,000 shares of MAI's Series A preferred stock for $ 0.6 million and in September 2021, we purchased 9,198,423 shares of MAI's Series B preferred stock for $ 7.0 million.
+Added: We recognize d $ 0.2 million and $ 0.1 million in research and development revenue from transactions with MAI in the three months ended March 31, 2022 and 2021, respectively.
+Added: We received nil shares and 1,428,342 shares of MAI's Series A and B preferred stock from research and development services we provided to MAI in the three months ended March 31, 2022 and 2021, respectively.
+Added: As of March 31, 2022, we have 16,705,320 shares of MAI's Series A and B preferred stock that we have earned or purchased since executing the Stock Purchase Agreement with MAI.
+Added: The carrying value of our investment in MAI Series A and B preferred stock was $ 12.7 million as of March 31, 2022 and December 31, 2021.
+Added: We had nil and $ 0.2 million in deferred revenue as of March 31, 2022 and December 31, 2021 respectively.
+Added: Payment for the services rendered was received in the form of additional shares of Series A and Series B preferred stock.
Segment, Geographical and Other Revenue Information
7 unchanged sentences
Our CODM does not review asset information by business segment in assessing performance or allocating resources, and accordingly, we do not report asset information by business segment.
−Removed: Performance Enzymes
−Removed: We initially commercialized our CodeEvolver ® protein engineering technology platform and products in the pharmaceuticals market, and to date this continues to be our largest market served.
−Removed: Our customers, which include many large global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development.
−Removed: We have also used the technology to develop customized enzymes for use in other industrial markets.
−Removed: These markets consist of several large industrial verticals, including food and food ingredients, animal feed, flavors, fragrances, and agricultural chemicals.
−Removed: We also use our technology to develop enzymes for customers using NGS and PCR/qPCR for in vitro molecular diagnostic and molecular biology research applications.
−Removed: Novel Biotherapeutics
−Removed: We are also targeting new opportunities in the pharmaceutical industry to discover, improve, and/or develop biotherapeutic drug candidates.
−Removed: We believe that our CodeEvolver ® protein engineering platform technology can be used to discover novel biotherapeutic drug candidates that will target human diseases that are in need of improved therapeutic interventions.
−Removed: Similarly, we believe that we can deploy our platform technology to improve specific characteristics of a customer’s pre-existing biotherapeutic drug candidate, such as its activity, stability or immunogenicity.
−Removed: Most notable is our lead program for the potential treatment of PKU in humans.
−Removed: PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient.
−Removed: We have also developed a pipeline of other biotherapeutic drug candidates, which are in preclinical development, and in which we expect to continue to make additional investments with the aim of advancing additional product candidates targeting other therapeutic areas.
−Removed: In March 2020, we entered into the Takeda Agreement with Takeda under which we will research and develop protein sequences for use in gene therapy products for certain diseases.
Factors considered in determining the two reportable segments of the Company include the nature of business activities, the management structure directly accountable to our CODM for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors.
3 unchanged sentences
This provides the CODM with more meaningful segment profitability reporting to support operating decisions and allocate resources.
−Removed: The following table provides financial information by our reportable business segments along with a reconciliation to consolidated income (loss) before income taxes (in thousands):
−Removed: Three months ended September 30, 2021 Three months ended September 30, 2020
−Removed: Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
−Removed: Product revenue $ 28,731 $ — $ 28,731 $ 8,401 $ — $ 8,401
−Removed: Research and development revenue 3,853 4,185 8,038 4,604 5,380 9,984
−Removed: Total revenues 32,584 4,185 36,769 13,005 5,380 18,385
−Removed: Costs and operating expenses:
−Removed: Cost of product revenue 6,867 — 6,867 3,642 — 3,642
−Removed: Research and development (1)
−Removed: 5,670 8,850 14,520 5,184 6,433 11,617
−Removed: Selling, general and administrative (1)
−Removed: 3,306 831 4,137 2,675 515 3,190
−Removed: Total segment costs and operating expenses 15,843 9,681 25,524 11,501 6,948 18,449
−Removed: Income (loss) from operations $ 16,741 $ ( 5,496 ) 11,245 $ 1,504 $ ( 1,568 ) ( 64 )
−Removed: Corporate costs (2)
−Removed: ( 8,097 ) ( 5,483 )
−Removed: Unallocated depreciation and amortization ( 794 ) ( 528 )
−Removed: Income (loss) before income taxes $ 2,354 $ ( 6,075 )
−Removed: Nine months ended September 30, 2021 Nine months ended September 30, 2020
+Added: The following table provides financial information by our reportable business segments along with a reconciliation to consolidated loss before income taxes (in thousands):
+Added: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
15 unchanged sentences
(1) Research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases.
−Removed: (2) Corporate costs include unallocated selling, general and administrative expenses, interest income, and other income (expense), net.
+Added: (2) Corporate costs include unallocated selling, general and administrative expenses, interest income, and other expense, net.
The following table provides stock-based compensation expense included in income (loss) from operations (in thousands):
−Removed: Three months ended September 30,
−Removed: Performance Enzymes Novel Biotherapeutics Corporate cost Total Performance Enzymes Novel Biotherapeutics Corporate cost Total
−Removed: Stock-based compensation $ 1,228 $ 272 $ 1,516 $ 3,016 $ 839 $ 132 $ 1,013 $ 1,984
−Removed: Nine months ended September 30,
+Added: Three Months Ended March 31,
Performance Enzymes Novel Biotherapeutics Corporate cost Total Performance Enzymes Novel Biotherapeutics Corporate cost Total
3 unchanged sentences
Percentage of Total Revenues for the
−Removed: Three months ended September 30, Nine months ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
Customer A 61 % *
3 unchanged sentences
Customer E * 14 %
−Removed: Customer F * * * 11 %
* Percentage was less than 10%
1 unchanged sentence
Percentage of Accounts Receivables as of
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
Customer A 65 % 62 %
−Removed: Customer C 11 % 32 %
−Removed: Customer E 14 % 13 %
−Removed: Customer F * 25 %
−Removed: * Percentage was less than 10%
Geographical Information
Geographic revenues are identified by the location of the customer and consist of the following (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
Americas $ 3,732 $ 4,929
3 unchanged sentences
Identifiable long-lived assets by location was as follows (in thousands):
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
United States $ 66,386 $ 65,457
Identifiable goodwill by reporting unit was as follows (in thousands):
−Removed: As of September 30, 2021 and December 31, 2020
+Added: As of March 31, 2022 and December 31, 2021
Performance Enzymes Novel Biotherapeutics Total
2 unchanged sentences
The following table summarizes the financial assets allowance for credit losses (in thousands):
−Removed: September 30, 2021 December 31, 2020
−Removed: Allowance for credit losses $ 74 $ 74
+Added: Three Months Ended March 31,
+Added: Balance at beginning of period $ 416 $ 74
+Added: Provision for credit losses — —
+Added: Balance at end of period $ 416 $ 74
The following tables summarize accounts receivable by aging category (in thousands):
−Removed: September 30, 2021
−Removed: Current 31-60 Days 61-90 Days 91 Days and over Total balance
+Added: March 31, 2022
+Added: Current 31-60 Days 61-90 Days 91 Days and over Total over 31 Days Total balance
Accounts receivable $ 24,244 $ 27 $ 89 $ 837 $ 953 $ 25,197
December 31, 2021
−Removed: Current 31-60 Days 61-90 Days 91 Days and over Total balance
+Added: Current 31-60 Days 61-90 Days 91 Days and over Total over 31 Days Total balance
Accounts receivable $ 22,697 $ 536 $ 569 $ 1,151 $ 2,256 $ 24,953
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.