Revenue

3 Months Ended

Mar. 31, 2022

U.S. Government Agreements, Grants and Licenses

The Company's accounts receivable included $425.9 million and $419.7 million related to amounts that were billed to customers and $52.3 million and $35.3 million related to amounts which had not yet been billed to customers as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022, changes in the Company's accounts receivables and deferred revenue balances were as follows (in thousands):


	December 31, 2021		Additions	Deductions	March 31, 2022
Contract receivables:
Accounts receivable	$	454,993	625,124	(601,961)	$	478,156
Contract liabilities:
Deferred revenue(1)	$	1,595,472	49,094	(108,586)	$	1,535,980

(1) Amount is comprised of $1.1 billion and $1.4 billion of current Deferred revenue and $441.7 million and $172.5 million of non-current Deferred revenue as of March 31, 2022 and December 31, 2021, respectively.

The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied (or partially unsatisfied), excluding amounts related to sales-based royalties, was approximately $7 billion as of March 31, 2022. The timing to fulfill performance obligations related to grant agreements will depend on the results of the Company's research and development activities, including clinical trials. The timing to fulfill performance obligations related to APAs will depend on timing of product manufacturing, delivery, and receipt of marketing authorizations. The remaining unfilled performance obligations are expected to be fulfilled in less than 12 months.

Grants

The Company recognized grant revenue as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
U.S. government partnership (“OWS”)	$	99,301	$	363,560
U.S. Department of Defense (“DoD”)	—		19,144
Coalition for Epidemic Preparedness Innovations (“CEPI”)	—		61,561
Bill & Melinda Gates Foundation (“BMGF”)	—		2,628
Total	$	99,301	$	446,893

Royalties and Other

For the three months ended March 31, 2022, the Company recognized $7.4 million in revenue related to sales-based royalties. For the three months ended March 31, 2021, the Company did not recognize any revenue related to sales-based royalties.

Collaboration and License Agreements

Serum Institute

The Company previously granted Serum Institute of India Private Limited (“SIIPL”) exclusive and non-exclusive licenses for the development, co-formulation, filling and finishing, registration, and commercialization of NVX-CoV2373. SIIPL agreed to purchase the Company's Matrix-MTM adjuvant and the Company granted SIIPL a non-exclusive license to manufacture the antigen drug substance component of NVX-CoV2373 in SIIPL’s licensed territory solely for use in the manufacture of NVX-CoV2373. The Company and SIIPL equally split the revenue from SIIPL’s sale of NVX-CoV2373 in its licensed territory, net of agreed costs. The Company also has a supply agreement with SIIPL and Serum Life Sciences Limited (“SLS”) under which SIIPL and SLS supply the Company with NVX-CoV2373 for commercialization and sale in certain territories.

Takeda Pharmaceutical Company Limited

The Company has a collaboration and license agreement with Takeda Pharmaceutical Company Limited (“Takeda”) under which the Company granted Takeda an exclusive license to develop, manufacture, and commercialize NVX-CoV2373 in Japan. Under the agreement, Takeda purchases the Company's Matrix-M™ adjuvant to manufacture NVX-CoV2373 and the Company is entitled to receive payments from Takeda based on the achievement of certain development and commercial milestones, as well as a portion of net profits from the sale of NVX-CoV2373 in the low to middle double-digit range. The Company is eligible for a future milestone payment of $20.0 million upon the first sale in Japan. Regulatory approval in Japan was received in April 2022 (see Note 16).

SK bioscience, Co., Ltd.

The Company has a collaboration and license agreement with SK bioscience, Co., Ltd. (“SK bioscience”) to manufacture and commercialize NVX-CoV2373 for sale to the governments of Korea, Thailand, and Vietnam. SK bioscience pays a royalty in the low to middle double-digit range. Additionally, the Company has a manufacturing supply arrangement with SK bioscience under which SK bioscience supplies the Company with the antigen component of NVX-CoV2373 for use in the final drug product globally, including product to be distributed by the COVAX Facility, which was established to allocate and distribute vaccines equitably to participating countries and economies.