Note 3 — Revenue

After the adoption of ASC 606

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 deferred revenue balance as of January 1, 2018 and December 31, 2018 is as follows (in thousands):

 

 

Deferred revenue has decreased from $30,090,000 at January 1, 2018 to $0 at December 31, 2018 primarily due to the recognition of license revenue of $39,114,000 for the NY-ESO License which commenced in September 2018, of which $27,001,000 was included in the opening balance of deferred revenue.  A further $3,089,000 of the deferred revenue at January 1, 2018 was recognized in the year ended December 31, 2018.

 

The impact of changes in variable consideration in the year ended December 31, 2018 was a reduction in deferred revenue of $10,396,000, respectively, and the impact of changes in the percentage of completion in the year ended December 31, 2018 was to increase deferred revenue by $5,027,000.

 

At December 31, 2018, there were no unsatisfied (or partially satisfied) performance obligations.  The NY-ESO program transferred to GSK on July 23, 2018 which resulted in the revenue allocated to the NY-ESO License and the transition activities being recognized in year ended December 31, 2018.  The revenue allocated to the PRAME pre-clinical development program was recognized over the development period, which was completed as at December 31, 2018.