Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue Recognition

12.     Revenue Recognition

The following table provides information about disaggregated revenue by product and services:

	Three months ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Product sales and rentals, net	$	1,228	$	1,045	$	1,879	$	1,885
Processing and storage fees, net		1,373		1,597		2,656		2,861
License, royalty and other		1,175		555		5,176		1,111
Net revenue	$	3,776	$	3,197	$	9,711	$	5,857

The following table provides changes in deferred revenue from contract liabilities:

	2022			2021
Balance at January 1	$	4,067		$	12,449
Deferral of revenue*		2,397			2,280
Recognition of unearned revenue*		(2,235	)		(3,567	)
Balance at June 30	$	4,229		$	11,162

* 2022 deferral of revenue resulted from payments received in advance of performance under the biobanking services storage contracts that are recognized as revenue under the contract as performance is completed.

Services

The Company recognizes revenue separately for biobanking collection and processing services and storage services.

Revenue from process fees is recognized at the point in time of the successful completion of processing. Revenue from storage services is recognized ratably over the contractual storage period. The portion of the 18- and 25-year contract storage periods that are being recognized over the contractual storage period are included in Deferred revenue in the condensed consolidated balance sheets and is classified as current if the Company expects to recognize the related revenue over the next 12 months from the balance sheet date.

The Company uses list prices to recognize revenue. Promotional discounts and other various incentives are estimated using the expected value method and are recognized in the same period the underlying revenue transaction is recognized.

Product sales and rentals and license, royalty and other revenues

The Company’s direct sales of degenerative disease products are included in product sales and rentals while sales through the Company’s network of distribution partners are included in license, royalty and other revenues.

The Company recognizes revenue for the sale of its Biovance ®, Interfyl ®, Biovance 3L ® and Centaflex ® products when the customer obtains control of the Company’s product based on the contractual shipping terms of a contract. Variable consideration (such as rebates, discounts and other deductions) is estimated using the expected value method and are recognized as revenue when the Company transfer control to the customers. In addition, the Company offers volume-based discounts, rebates and prompt pay discounts and other various incentives which are estimated under the expected value method and recognized as a reduction in revenue in the same period the underlying revenue transaction is recognized.

Under the license agreement with Sanuwave which acquired certain assets comprising its MIST ® /UltraMIST ® business, the Company received a quarterly license fee and a defined royalty on each product sold. The six months ended June 30, 2021, included the recognition of the quarterly license fee in license, royalty and other revenues. During the third quarter of 2021, the license agreement with Sanuwave was terminated due to an uncured material breach.