12. Research Agreement

In November 2014, the Company entered into a research agreement with a multinational pharmaceutical company (the “Counterparty”) for purposes of mapping immune cell super-enhancers (“SE”) and transcriptional targets in autoimmune disease. Under the research agreement, the Company is responsible for the conduct of all activities under separate projects, as defined in the research agreement, associated with generating SE and transcriptional maps of the cell/tissue supplied by the Counterparty. Upon the completion of each project, the Counterparty determined whether to commence the next project under the research agreement upon written notification.

The research agreement was amended in November 2016 to extend the term to March 31, 2017. The research agreement terminated automatically on March 31, 2017 in accordance with its terms.

The Company recognized revenue on a completed performance basis for each project performed under the agreement, as the Company does not have the ability to reasonably estimate the period of performance and the final study report for each project is significant to the overall arrangement. The Company recognized revenue of $1.1 million and $0.3 million during the years ended December 31, 2017 and December 31, 2016, respectively, under the agreement.