| Schedule of Research and Development Revenues Disaggregated by Location |
Research and Development revenue is attributable to regions based on the location of our collaboration partner's parent company headquarters. Research and Development revenues disaggregated by location were as follows (in thousands):
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Japan
|
|
$
|
1,914
|
|
|
$
|
648
|
|
|
$
|
3,009
|
|
|
$
|
1,908
|
|
|
United States
|
|
|
117
|
|
|
|
—
|
|
|
|
197
|
|
|
|
500
|
|
|
Total Research and Development Revenue
|
|
$
|
2,031
|
|
|
$
|
648
|
|
|
$
|
3,206
|
|
|
$
|
2,408
|
|
|
| Schedule of Contract Assets and Contract Liabilities for Performance Obligations related to Collaboration Agreements |
Changes in the Company’s contract assets and liabilities under Topic 606 were as follows (in thousands):
|
|
|
September 30, 2018
|
|
December 31, 2017 (1)
|
|
|
Contract Assets
|
|
|
|
|
|
|
|
|
Unbilled revenue
|
|
$
|
—
|
|
$
|
—
|
|
|
Contract Liabilities
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
$
|
33,023
|
|
$
|
1,092
|
|
|
|
(1)
|
December 31, 2017 balances prior to the impact related to the modified retrospective adoption of ASC 606. During the nine months ended September 30, 2018, the Company recorded $836,000 in research and development revenue that was previously included in deferred revenue at December 31, 2017. The main reason for the increase in deferred revenue during the nine months ended September 30, 2018, is the Takeda Development and License Agreement entered into during September 2018, and the increased consideration under the Takeda Individual Project Agreement.
|
|
| Schedule of Impact of Adoption of New Revenue Standard |
As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the Condensed Consolidated Balance Sheet as of January 1, 2018 (in thousands):
|
Balance Sheet
|
|
December 31, 2017
|
|
|
Effect of adoption of ASC 606 (1)
|
|
|
January 1, 2018
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current assets
|
|
$
|
19
|
|
|
$
|
54
|
|
|
$
|
73
|
|
|
Total assets
|
|
|
90,391
|
|
|
|
54
|
|
|
|
90,445
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated deficit
|
|
|
(64,471
|
)
|
|
|
54
|
|
|
|
(64,417
|
)
|
|
Total liabilities and stockholders' equity
|
|
$
|
90,391
|
|
|
$
|
54
|
|
|
$
|
90,445
|
|
|
|
(1)
|
This impact represents the amount of revenue that would have been recognized and accounted for as unbilled revenue, during the year ended December 31, 2017.
|
The impact of adoption on the Company’s Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended September 30, 2018 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Balance without
|
|
|
|
|
As reported
|
|
|
Effect of adoption of
|
|
|
adoption of ASC 606
|
|
|
Statement of operations and comprehensive loss
|
|
September 30, 2018
|
|
|
ASC 606 (1)
|
|
|
September 30, 2018
|
|
|
Research and development revenue
|
|
$
|
2,031
|
|
|
$
|
133
|
|
|
$
|
2,164
|
|
|
Total revenue
|
|
|
6,752
|
|
|
|
133
|
|
|
|
6,885
|
|
|
Net loss
|
|
$
|
5,244
|
|
|
$
|
133
|
|
|
$
|
5,111
|
|
|
Net loss per share
|
|
$
|
0.19
|
|
|
$
|
0.00
|
|
|
$
|
0.19
|
|
|
|
(1)
|
The adoption of ASC 606 resulted in a reduction in revenues recognized in the three months ended September 30, 2018. This impact represents the amount of aggregate revenue that would have been recognized during the three months ended September 30, 2018 under Previous Guidance.
|
The impact of adoption on the Company’s Condensed Consolidated Statement of Operations and Comprehensive Loss for the nine months ended September 30, 2018 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Balance without
|
|
|
|
|
As reported
|
|
|
Effect of adoption of
|
|
|
adoption of ASC 606
|
|
|
Statement of operations and comprehensive loss
|
|
September 30, 2018
|
|
|
ASC 606 (1)
|
|
|
September 30, 2018
|
|
|
Research and development revenue
|
|
$
|
3,206
|
|
|
$
|
54
|
|
|
$
|
3,260
|
|
|
Total revenue
|
|
|
8,601
|
|
|
|
54
|
|
|
|
8,655
|
|
|
Net loss
|
|
$
|
23,653
|
|
|
$
|
54
|
|
|
$
|
23,599
|
|
|
Net loss per share
|
|
$
|
0.87
|
|
|
$
|
0.00
|
|
|
$
|
0.87
|
|
|
|
(1)
|
The adoption of ASC 606 resulted in a reduction in revenues recognized in the nine months ended September 30, 2018. This impact represents the amount of aggregate revenue that would have been recognized during the nine months ended September 30, 2018 under Previous Guidance.
|
The impact of adoption on the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Balance without
|
|
|
|
|
As reported
|
|
|
Effect of adoption of
|
|
|
adoption of ASC 606
|
|
|
Statement of cash flows
|
|
September 30, 2018
|
|
|
ASC 606 (1)
|
|
|
September 30, 2018
|
|
|
Net loss
|
|
$
|
23,653
|
|
|
$
|
54
|
|
|
$
|
23,599
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current assets
|
|
|
(4,313
|
)
|
|
|
(54
|
)
|
|
|
(4,367
|
)
|
|
Net cash used in operating activities
|
|
$
|
(23,859
|
)
|
|
$
|
—
|
|
|
$
|
(23,859
|
)
|
|
|
(1)
|
The adoption of ASC 606 resulted in a decrease of net loss and an increase in unbilled revenue that is included in other current assets.
|
|