Deferred Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Deferred Revenue

Deferred Revenue

In December 2018, the Company entered into a supply agreement with Nestec Ltd. (Nestlé), pursuant to which Nestlé is the exclusive customer for NIAGEN® for human use in the (i) medical nutritional and (ii) functional food and beverage categories in certain territories. As consideration for the rights granted to Nestlé, the Company received an upfront fee of $4.0 million in January 2019. In December 2020, the Company also received $1.0 million for the launch of product in certain territory pursuant to the supply agreement. The Company determined that both the $4.0 million upfront fee and the $1.0 million product launch fee are treated as advance payments for future performance obligations, and utilized output method to recognize the allocated transaction price for this performance obligation as products are supplied over the duration of the exclusivity period. In utilizing output method, the Company estimated total delivery volume based on forecast inputs received from Nestlé on expected purchases of NIAGEN® over the course of the supply agreement.

Revenue recognized from deferred revenue and the corresponding deferred revenue balance for the periods indicated is as follows:

(In thousands)	Year Ended December 31,				At December 31,
	2021		2020		2021		2020
Revenue recognized from deferred revenue	$	95	$	432
Deferred revenue balance					$	4,346	$	4,441