CONTRACT WITH CUSTOMER |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Revenue from Contract with Customer [Abstract] | |
| CONTRACT WITH CUSTOMER | 3) CONTRACT WITH CUSTOMER
The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers (“ASC 606”) when a customer obtains control of promised services or goods in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services.
The Company had one contract with a customer that was accounted for under ASC 606 related to an exclusive option and license agreement it entered into in February 2023, and amended in August 2023, with a customer, which provided the customer with the option (the “Option Right”) to obtain an exclusive sublicense of intellectual property from the Company and to request to have the Company develop a customized cell line. The customer paid the Company a $0.3 million non-refundable up-front payment (the “Option Fee”) for the Option Right and paid an initial payment of $0.4 million to commence the cell line customization activities.
On September 24, 2024, the Company assigned this customer contract to Factor Bioscience (as defined in Note 13) whereby all the Company’s rights and obligations under the customer contract are now Factor Bioscience’s responsibility. Factor Bioscience will pay the Company thirty percent (30%) of all amounts it actually receives from the customer under the contract in the event that the customer exercises its Option Right, and Factor Bioscience will pay the Company twenty percent (20%) of all amounts it receives from the customer for the customization activities set forth in the contract.
Prior to assigning the contract to Factor Bioscience, the $0.4 million received from the customer was being recognized equally over the development period, and for the three months ended March 31, 2024, the Company recognized less than $0.1 million of revenue related to the customization activities. There was no such revenue recognized for the three months ended March 31, 2025.
The Company was obligated to pay Factor Bioscience 20% of any amounts the Company received from a customer that was related to the licensed technology under a previous license agreement the Company had with Factor Bioscience, which has since been terminated. For the three months ended March 31, 2024, the Company recognized less than $0.1 million of fees to Factor Bioscience, which was recorded as a cost of revenue. There was no such cost recognized for the three months ended March 31, 2025.
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