Collaboration and Licensing Revenue | Collaboration and Licensing Revenue The Company generates revenue through contractual agreements with collaborators (known as exclusive channel collaborations, "ECC" or "ECCs") and licensing agreements whereby the collaborators or the licensees obtain exclusive access to the Company's proprietary technologies for use in the research, development and commercialization of products and/or treatments in a contractually specified field of use. Upfront and milestone payments are typically deferred and recognized over the expected life of the Company's technology platform using a straight-line approach. The Company recognizes the reimbursement payments received for research and development services in the period in which the services are performed and collection is reasonably assured. The following tables summarize the amounts recorded as revenue in the consolidated statements of operations for each significant collaboration or licensing agreement for the three and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, 2016 Revenue Recognized From Total Upfront and Milestone Payments Research and Development Services ZIOPHARM Oncology, Inc. $ 922 $ 6,048 $ 6,970 Oragenics, Inc. 261 246 507 Fibrocell Science, Inc. 605 789 1,394 Genopaver, LLC 68 1,569 1,637 S & I Ophthalmic, LLC — 2,358 2,358 OvaXon, LLC — 808 808 Intrexon Energy Partners, LLC 625 3,587 4,212 Persea Bio, LLC 125 206 331 Ares Trading S.A. 1,597 621 2,218 Thrive Agrobiotics, Inc. 46 404 450 Intrexon Energy Partners II, LLC 500 394 894 Exotech Bio, Inc. 139 — 139 Relieve Genetics, Inc. 120 230 350 Intrexon T1D Partners, LLC 278 32 310 Other 2,769 2,134 4,903 Total $ 8,055 $ 19,426 $ 27,481 Three Months Ended June 30, 2015 Revenue Recognized From Total Upfront and Milestone Payments Research and Development Services ZIOPHARM Oncology, Inc. $ 644 $ 4,606 $ 5,250 Oragenics, Inc. 307 68 375 Fibrocell Science, Inc. 448 1,470 1,918 Genopaver, LLC 68 867 935 S & I Ophthalmic, LLC — 890 890 OvaXon, LLC — 662 662 Intrexon Energy Partners, LLC 625 2,731 3,356 Persea Bio, LLC 125 141 266 Ares Trading S.A. 739 — 739 Other 747 2,043 2,790 Total $ 3,703 $ 13,478 $ 17,181 Six Months Ended June 30, 2016 Revenue Recognized From Total Upfront and Milestone Payments Research and Development Services ZIOPHARM Oncology, Inc. $ 1,844 $ 12,107 $ 13,951 Oragenics, Inc. 524 789 1,313 Fibrocell Science, Inc. 1,210 2,041 3,251 Genopaver, LLC 137 3,078 3,215 S & I Ophthalmic, LLC — 3,544 3,544 OvaXon, LLC — 1,502 1,502 Intrexon Energy Partners, LLC 1,250 6,950 8,200 Persea Bio, LLC 250 405 655 Ares Trading S.A. 3,194 1,429 4,623 Thrive Agrobiotics, Inc. 92 792 884 Intrexon Energy Partners II, LLC 1,000 444 1,444 Exotech Bio, Inc. 139 — 139 Relieve Genetics, Inc. 120 230 350 Intrexon T1D Partners, LLC 278 32 310 Other 3,789 4,384 8,173 Total $ 13,827 $ 37,727 $ 51,554 Six Months Ended June 30, 2015 Revenue Recognized From Total Upfront and Milestone Payments Research and Development Services ZIOPHARM Oncology, Inc. $ 1,288 $ 7,763 $ 9,051 Oragenics, Inc. 569 76 645 Fibrocell Science, Inc. 896 3,183 4,079 Genopaver, LLC 137 1,467 1,604 S & I Ophthalmic, LLC — 1,645 1,645 OvaXon, LLC — 1,306 1,306 Intrexon Energy Partners, LLC 1,250 4,916 6,166 Persea Bio, LLC 250 256 506 Ares Trading S.A. 739 — 739 Other 1,605 4,618 6,223 Total $ 6,734 $ 25,230 $ 31,964 Except for the agreements discussed below, there have been no significant changes to arrangements with our collaborators and licensees in the six months ended June 30, 2016 . See Note 5 in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for additional details of the Company's existing collaboration and licensing agreements. Exotech Bio Collaboration In March 2016, the Company entered into an ECC with Exotech Bio, Inc. ("Exotech Bio"), an affiliate of Harvest and a related party. Exotech Bio was formed for the purpose of entering into the ECC and developing and commercializing products using exosomes carrying a RNA payload designed to kill, suppress, or render immune-visible a cancer cell. Upon execution of the ECC, the Company received a technology access fee in the form of equity in Exotech Bio valued at $5,000 as upfront consideration. The Company is also entitled to up to $52,500 of potential payments for substantive and non-substantive development and commercial milestones for each product developed under the ECC. The Company receives reimbursement payments for research and development services provided pursuant to the ECC. Exotech Bio will pay the Company royalties as a percentage in the lower double-digits on the quarterly net sales of products developed under the ECC, as defined in the agreement. Exotech Bio is responsible for the development and commercialization of the product candidates. The term of the ECC commenced in March 2016 and continues until terminated pursuant to the ECC agreement. The ECC may be terminated by either party in the event of certain material breaches defined in the agreement and may be terminated voluntarily by Exotech Bio upon 90 days written notice to the Company. Relieve Genetics Collaboration In March 2016, the Company entered into an ECC with Relieve Genetics, Inc. ("Relieve Genetics"), an affiliate of Harvest and a related party. Relieve Genetics was formed for the purpose of entering into the ECC and developing and commercializing products using a viral vector expressing interleukin-10 for the treatment of chronic neuropathic pain resultant from cancer in humans. Upon execution of the ECC, the Company received a technology access fee in the form of equity in Relieve Genetics valued at $4,333 as upfront consideration. The Company is also entitled to up to $52,500 of potential payments for substantive and non-substantive development and commercial milestones for each product developed under the ECC. The Company receives reimbursement payments for research and development services provided pursuant to the ECC. Relieve Genetics will pay the Company royalties as a percentage in the lower double-digits on the quarterly net sales of products developed under the ECC, as defined in the agreement. Relieve Genetics is responsible for the development and commercialization of the product candidates. The term of the ECC commenced in March 2016 and continues until terminated pursuant to the ECC agreement. The ECC may be terminated by either party in the event of certain material breaches defined in the agreement and may be terminated voluntarily by Relieve Genetics upon 90 days written notice to the Company. Intrexon T1D Partners Collaboration In March 2016, the Company entered into an ECC with Intrexon T1D Partners, a related party. Pursuant to the ECC, Intrexon T1D Partners received an exclusive license to the Company's technology platform to develop and commercialize products to treat type 1 diabetes. Upon execution of the ECC, the Company received a technology access fee of $10,000 and is entitled to reimbursement of research and development services as provided for in the ECC agreement. The term of the ECC commenced in March 2016 and continues until March 2036; termination prior to that date may be initiated (i) by either party in the event of certain material breaches defined in the agreement or (ii) may be terminated Intrexon T1D Partners upon 90 days written notice to the Company. AD Skincare Collaboration In June 2016, the Company entered into an ECC with AD Skincare, Inc. ("AD Skincare"), an affiliate of Harvest and a related party. AD Skincare was formed for the purpose of entering into the ECC and developing an advanced topical delivery system to improve the efficacy of biologically active ingredients aimed at improving signs of aging human skin. Upon execution of the ECC, the Company received a technology access fee in the form of equity in AD Skincare valued at $4,333 as upfront consideration. The Company is also entitled to up to $2,000 of potential payments for substantive and non-substantive development milestones for each product developed under the ECC, as well as up to $17,000 in one-time commercial milestones. The Company receives reimbursement payments for research and development services provided pursuant to the ECC. AD Skincare will pay the Company royalties as a percentage in the low double-digits on the quarterly net sales of products developed under the ECC, as defined in the agreement. AD Skincare is responsible for the development and commercialization of the product candidates. The term of the ECC commenced in June 2016 and continues until terminated pursuant to the ECC agreement. The ECC may be terminated by either party in the event of certain material breaches defined in the agreement and may be terminated voluntarily by AD Skincare upon 90 days written notice to the Company. ZIOPHARM Collaborations In June 2016, the Company amended each of its two existing collaboration agreements with ZIOPHARM and as a result the rate of the royalty which the Company is entitled to receive on certain products commercialized pursuant to the agreements was reduced from 50% to 20% . As consideration for execution of the amendments, ZIOPHARM issued the Company 100,000 shares of ZIOPHARM's Series 1 Preferred Stock valued at $120,000 . The Company allocated the consideration received to each ECC based on the cumulative value of upfront and milestone payments previously received pursuant to that ECC. Because the Company has remaining performance obligations under each of the ZIOPHARM ECCs, the Company recorded the initial fair value received as deferred revenue and will recognize this amount straight-line over the remaining performance period for each ZIOPHARM ECC. No other financially significant terms of the ZIOPHARM ECCs were changed as a result of the amendments. See Note 7 for additional discussion of the terms of the preferred stock and the accounting treatment. Deferred Revenue Deferred revenue primarily consists of consideration received for upfront and milestone payments in connection with the Company's collaborations and licensing agreements, prepayments for research and development services performed for collaborators and licensees, and prepayments for product and service revenues. Deferred revenue consists of the following: June 30, December 31, Upfront and milestone payments $ 310,937 $ 181,331 Prepaid research and development services 8,122 10,938 Prepaid product and service revenues 5,471 4,759 Other 709 701 Total $ 325,239 $ 197,729 Current portion of deferred revenue $ 53,863 $ 35,366 Long-term portion of deferred revenue 271,376 162,363 Total $ 325,239 $ 197,729 The following table summarizes the remaining balance of deferred revenue associated with upfront and milestone payments for each significant collaboration and licensing agreement: June 30, December 31, ZIOPHARM Oncology, Inc. $ 148,494 $ 30,338 Oragenics, Inc. 8,289 8,813 Fibrocell Science, Inc. 20,235 21,445 Genopaver, LLC 2,113 2,250 Intrexon Energy Partners, LLC 19,375 20,625 Persea Bio, LLC 4,250 4,500 Ares Trading S.A. 50,373 53,567 Thrive Agrobiotics, Inc. 1,529 1,621 Intrexon Energy Partners II, LLC 16,833 17,833 Exotech Bio, Inc. 4,861 — Relieve Genetics, Inc. 4,213 — Intrexon T1D Partners, LLC 9,564 — AD Skincare, Inc. 4,333 — Other 16,475 20,339 Total $ 310,937 $ 181,331 |