Research and development services:
The Company has certain arrangements with our collaboration partners that include contracting our full-time employees for research
and development programs. The Company assesses if these services are considered distinct in the context of each contract and, if
so, they are accounted for as separate performance obligations. These revenues are recorded in contract revenue as the services
Sublicense revenues: The Company
has certain arrangements with our collaboration partners that include provisions for sublicensing. The Company recognizes any sublicense
revenues at the point in time it is highly probable to obtain and not subject to reversal in the future.
Royalties: For arrangements that
include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant
item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when
the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).
To date, the Company has not recognized any royalty revenue resulting from any of its licensing and collaboration agreements.
The Company receives payments and determines credit terms from its licensees for its various performance obligations based on billing
schedules established in each contract. The timing of revenue recognition, billings and cash collections results in billed other
current receivables, accrued income (contract assets), and deferred income (contract liabilities) on the Balance Sheet. Amounts
are recorded as other current receivables when the Company’s right to consideration is unconditional. The Company does not
assess whether a contract has a significant financing component if the expectation at contract inception is such that the period
between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less.
The following table
presents changes in the Company’s contract assets and liabilities during the years ended December 31, 2018 and 2017 (in CHF
||Balance at the beginning of the reporting period
||Balance at the end of the reporting period|
|Twelve months ended December 31, 2018:
|Twelve months ended December 31, 2017:
During the years ended December 31, 2018
and 2017, the Company recognized the following revenues as a result of changes in the contract asset and the contract liability
balances in the respective periods (in CHF thousands):
||For the Years Ended|
|Revenues recognized in the period from:
|Amounts included in the contract liability at the beginning of the period