Note 3 — Revenue

 

Revenue from contracts with customers arises from one customer, which is GSK, in one geographic location, which is the United Kingdom.

 

Revenue comprises the following categories (in thousands):

 

 

The following table shows movements in deferred revenue for the six months ended June 30, 2018 (in thousands):

 

 

The aggregate amount of the transaction price, excluding variable consideration which is constrained to reduce the consideration to the amount which is probable of being received, allocated to the performance obligations that are unsatisfied (or partially satisfied) as of the end of the reporting period was $42,653,000 at June 30, 2018.  This amount comprises $946,000 of revenue allocated to partially satisfied performance obligations for the NY-ESO program, $39,593,000 of revenue allocated to the exclusive license to research, develop, and commercialize the Company’s NY-ESO SPEAR T-cell therapy program and a further $2,114,000 of revenue allocated to the remaining performance obligations for the PRAME program.

 

The IND for the NY-ESO program and the responsibility for the NY-ESO program transferred to GSK on July 23, 2018.  Therefore, management anticipates that the revenue allocated to NY-ESO program and the exclusive license to research, develop, and commercialize the Company’s NY-ESO SPEAR T-cell therapy program will be recognized in the third quarter of 2018.

 

The revenue allocated to the PRAME program will be recognized over the next twelve months as the development of the second target, PRAME, progresses.