Annual report pursuant to Section 13 and 15(d)

REVENUES, NET

v3.22.1
REVENUES, NET
 12 Months Ended
Dec. 31, 2021
Revenue From Contract With Customer [Abstract]  
REVENUES, NET

NOTE 3—REVENUES, NET

Revenues by category were as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

 

2021

 

 

2020

 

Endari®

 

 

$

20,117

 

 

 

22,564

 

Other

 

 

 

493

 

 

 

603

 

Revenues, net

 

 

$

20,610

 

 

$

23,167

 

The following table summarizes the revenue allowance and accrual activities for the years ended December 31, 2021 and 2020 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

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

 

Provision related to sales in the current year

 

 

3,065

 

 

 

3,845

 

 

 

234

 

 

 

7,144

 

Adjustments related to prior period sales

 

 

13

 

 

 

226

 

 

 

(148

)

 

 

91

 

Credit and payments made

 

 

(1,731

)

 

 

(3,057

)

 

 

(20

)

 

 

(4,808

)

Balance as of December 31, 2021

 

$

1,481

 

 

$

3,133

 

 

$

539

 

 

$

5,153

 

 

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

 

 

Revenue for year ended December 31,

 

 

 

2021

 

 

2020

 

Customer A

 

 

50

%

 

 

60

%

Customer B

 

 

29

%

 

 

20

%

Customer C

 

 

10

%

 

 

8

%

 

The Company is party to a distributor agreement with Telcon RF Pharmaceutical, Inc., or Telcon, pursuant to which it granted Telcon exclusive rights to the Company’s 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 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 repay 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, 2021 and 2020. Refer Notes 11 and 12 for additional details of the Company’s agreement with Telcon.

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 originally 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 $500,000 in other income.