Annual report pursuant to Section 13 and 15(d)

REVENUES, NET

v3.23.1
REVENUES, NET
 12 Months Ended
Dec. 31, 2022
Revenue From Contract With Customer [Abstract]  
REVENUES, NET

NOTE 3—REVENUES, NET

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

 

 

Years ended December 31,

 

 

2022

 

 

2021

 

Endari®

$

17,854

 

 

$

20,117

 

Other

 

536

 

 

 

493

 

Revenues, net

 

18,390

 

 

 

20,610

 

The following table summarizes the revenue allowance and accrual activities for the years ended December 31, 2022, and 2021 (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

 

 

3,065

 

 

 

3,845

 

 

 

234

 

 

 

7,144

 

Adjustments related to prior period sales

 

 

13

 

 

 

226

 

 

 

(148

)

 

 

92

 

Credit and payments made

 

 

(1,731

)

 

 

(3,057

)

 

 

(20

)

 

 

(4,808

)

Balance as of December 31, 2021

 

 

1,481

 

 

 

3,133

 

 

 

539

 

 

 

5,153

 

Provision related to sales in the current year

 

 

2,672

 

 

 

2,857

 

 

 

1,416

 

 

 

6,945

 

Adjustments related to prior period sales

 

 

(56

)

 

 

18

 

 

 

537

 

 

 

499

 

Credit and payments made

 

 

(2,739

)

 

 

(2,290

)

 

 

(2,077

)

 

 

(7,106

)

Balance as of December 31, 2022

 

$

1,358

 

 

$

3,718

 

 

$

415

 

 

$

5,491

 

The following table summarizes revenue attributable to each of the customers that accounted for 10% or more of net revenues in either of the period shown:

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

Customer A

 

 

25

%

 

 

50

%

Customer B

 

 

27

%

 

 

29

%

Customer C

 

 

14

%

 

 

10

%

Customer D

 

 

13

%

 

 

—

 

The Company is a 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 as unearned revenue in other current liabilities and other long-term liabilities as of December 31, 2022 and 2021, respectively. Refer Notes 11 and 12 for additional details of the Company’s agreement with Telcon.