Quarterly report pursuant to Section 13 or 15(d)

REVENUES, NET

v3.21.2
REVENUES, NET
 9 Months Ended
Sep. 30, 2021
Revenue From Contract With Customer [Abstract]  
REVENUES, NET

NOTE 3 — REVENUES, NET

Revenues, net disaggregated by category were as follows (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Endari®

 

$

5,590

 

 

$

5,485

 

 

$

17,186

 

 

$

16,548

 

Other

 

 

176

 

 

 

116

 

 

 

404

 

 

 

367

 

Revenues, net

 

$

5,766

 

 

$

5,601

 

 

$

17,590

 

 

$

16,915

 

 

The following table summarizes the revenue allowance and accrual activities for the nine months ended September 30, 2021 and September 30, 2020 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of December 31, 2020

 

$

134

 

 

$

2,119

 

 

$

473

 

 

$

2,726

 

Provision related to sales in the current year

 

 

2,374

 

 

 

2,627

 

 

 

188

 

 

 

5,189

 

Adjustments related prior period sales

 

 

13

 

 

 

8

 

 

 

(111

)

 

 

(90

)

Credit and payments made

 

 

(1,217

)

 

 

(2,201

)

 

 

(20

)

 

 

(3,438

)

Balance as of September 30, 2021

 

$

1,304

 

 

$

2,553

 

 

$

530

 

 

$

4,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

$

228

 

 

$

1,354

 

 

$

315

 

 

$

1,897

 

Provision related to sales in the current year

 

 

2,106

 

 

 

2,917

 

 

 

180

 

 

 

5,203

 

Adjustments related prior period sales

 

 

15

 

 

 

(43

)

 

 

(65

)

 

 

(93

)

Credit and payments made

 

 

(2,144

)

 

 

(1,762

)

 

 

—

 

 

 

(3,906

)

Balance as of September 30, 2020

 

$

205

 

 

$

2,466

 

 

$

430

 

 

$

3,101

 

 

 

The following table summarizes net revenues attributable to each of our customers that accounted for 10% or more of net revenues (as a percentage of net revenues):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Customer A

 

 

31

%

 

 

49

%

 

 

47

%

 

 

52

%

Customer B

 

 

49

%

 

 

32

%

 

 

35

%

 

 

27

%

Customer C

 

 

12

%

 

 

9

%

 

 

10

%

 

 

8

%

Total

 

 

92

%

 

 

90

%

 

 

92

%

 

 

87

%

The Company is party to a distributor agreement with Telcon pursuant to which the Company granted Telcon exclusive rights to the Company’s prescription 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 the Company specified minimum quantities of the PGLG. 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 September 30, 2021 and December 31, 2020. Refer to Note 11 and for additional details.