Annual report pursuant to Section 13 and 15(d)

REVENUES

v3.21.1
REVENUES
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
REVENUES

NOTE 3—REVENUES

Revenues by category were as follows (in thousands):

 

 

Year ended December 31,

 

 

 

2020

 

 

2019

 

Endari®

 

$

22,564

 

 

 

22,311

 

Other

 

 

603

 

 

 

441

 

Revenues, net

 

$

23,167

 

 

$

22,752

 

The following table summarizes the revenue allowance and accrual activities for the years ended December 31, 2020 and 2019 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of December 31, 2018

 

$

84

 

 

$

798

 

 

$

99

 

 

 

981

 

Provision related to sales in the current year

 

 

1,393

 

 

 

3,082

 

 

 

216

 

 

 

4,691

 

Credit and payments made

 

 

(1,249

)

 

 

(2,526

)

 

 

—

 

 

 

(3,775

)

Balance as of December 31, 2019

 

 

228

 

 

 

1,354

 

 

 

315

 

 

 

1,897

 

Provision related to sales in the current year

 

 

2,686

 

 

 

3,752

 

 

 

245

 

 

 

6,683

 

Adjustments related to prior period sales

 

 

16

 

 

 

(44

)

 

 

(87

)

 

 

(115

)

Credit and payments made

 

 

(2,796

)

 

 

(2,943

)

 

 

—

 

 

 

(5,739

)

Balance as of December 31, 2020

 

 

134

 

 

 

2,119

 

 

 

473

 

 

 

2,726

 

 

The following table sets forth information regarding customers that accounted for 10% or more of net revenues:

 

 

Revenue for year ended December 31,

 

 

 

 

2020

 

 

2019

 

 

Customer A

 

 

60

%

 

 

60

%

 

Customer B

 

 

20

%

 

 

24

%

 

 

The Company is party to a distributor agreement with Telcon pursuant to which it granted Telcon exclusive rights to the Company’s pharmaceutical grade L-glutamine (“PGLG”) oral powder for the treatment of diverticulosis in South Korea, Japan and China in exchange for Telcon’s payment of a $10 million upfront fee and agreement to purchase from us specified minimum quantities of the finished product. In a related license agreement with Telcon, the Company agreed to use commercially reasonable best efforts to obtain product registration in these territories within three years of obtaining FDA marketing authorization for PGLG in this indication. Telcon has the right to terminate the distributor agreement in certain circumstances for failure to obtain such product registrations, in which event the Company would be obliged to return to Telcon the $10 million upfront fee. The upfront fee of $10 million is included in other long-term liabilities as unearned revenue as of December 31, 2020 and 2019. Refer Note 12 for related party transaction details.  

The Company received a non refundable deposit of $500,000 in connection with entering into a distribution agreement with a strategic partner in 2018 to distribute Endari® in the Middle East and North Africa region. The payment was recorded as unearned revenue and included in other long-term liabilities to be recognized as revenue when the performance obligations are satisfied. During 2020, the agreement was terminated and the Company recognized the upfront payment of $500,000 in other income.