Company: ATRA
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035507
Chunk: 218

Company: Atara Biotherapeutics, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 218
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 deferred until we have performed the associated manufacturing of finished Ebvallo product inventory and cell selection services, or once manufacturing and cell selection technology transfers to Pierre Fabre have been completed. At that point, Pierre Fabre would be able to utilize the inventory it had purchased from us on its own. Commercialization revenue associated with the Additional Territory Obligation and the Process Sciences Obligation is recognized using a cost-based input method based on the amount of actual costs incurred relative to the total budgeted costs expected to be incurred for the respective performance obligations. A cost-based input method of revenue recognition requires us to make estimates of costs to complete our performance obligation. In making such estimates, significant judgment is required to evaluate assumptions related to cost estimates. The cumulative effect of revisions to estimated costs to complete our performance obligation will be recorded in the period in which changes are identified and amounts can be reasonably estimated. We expect to recognize the remaining deferred revenue associated with the Additional Territory Obligation and the Process Sciences Obligation over a period of approximately one year respectively. We reassess this evaluation each reporting period. The transfer of control occurs over the respective time period and, in our judgment, is the best measure of progress towards satisfying the performance obligation. A significant change in these assumptions and estimates could have a material impact on the timing and amount of revenue recognized in future periods. We expect to recognize revenue associated with the Intermediate Inventory Obligation at a point in time on the Manufacturing Transition Date, which is when title and risk of loss, and thus, control, of the intermediate inventory transfers to Pierre Fabre. 

115

Deferred revenue activity related to commercialization revenue for the year ended December 31, 2024 was as follows:

        Total

        (in thousands)

        Deferred revenue, December 31, 2023
         
        $
        115,395

        Additions

        105,235

        Recognized into commercialization revenue

        (125,538
        )

        Deferred revenue December 31, 2024

        95,092

        Less: deferred revenue – current portion

        (95,092
        )

        Deferred revenue – long-term, December 31, 2024
         
        $
        —

      During the year ended December 31, 2024, we recognized $45.7 million of revenue that was included in the deferred revenue balance as of December 31, 2023. During the year ended December 31, 2024, we recognized revenue of $0.