Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.23.3
REVENUES
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES

NOTE 3 — REVENUES

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Endari®

 

$

4,933

 

 

$

4,763

 

 

$

21,925

 

 

$

12,072

 

Other

 

 

85

 

 

 

176

 

 

$

605

 

 

 

388

 

Revenues, net

 

$

5,018

 

 

$

4,939

 

 

$

22,530

 

 

$

12,460

 

The following table summarizes the revenue allowance and accrual activities for the nine months ended September 30, 2023 and September 30, 2022 (in thousands):

 

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of December 31, 2022

 

$

1,358

 

 

$

3,718

 

 

$

415

 

 

$

5,491

 

Provision related to sales in the current year

 

 

1,677

 

 

 

3,228

 

 

 

387

 

 

 

5,293

 

Adjustments related to prior period sales

 

 

(213

)

 

 

136

 

 

 

25

 

 

 

(52

)

Credits and payments made

 

 

(1,853

)

 

 

(2,300

)

 

 

(442

)

 

 

(4,595

)

Balance as of September 30, 2023

 

$

969

 

 

$

4,782

 

 

$

385

 

 

$

6,136

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

 

$

1,481

 

 

$

3,133

 

 

$

539

 

 

$

5,153

 

Provision related to sales in the current year

 

 

1,859

 

 

 

1,828

 

 

 

210

 

 

$

3,897

 

Adjustments related to prior period sales

 

 

(56

)

 

 

18

 

 

 

569

 

 

$

531

 

Credits and payments made

 

 

(2,379

)

 

 

(1,656

)

 

 

(977

)

 

$

(5,012

)

Balance as of September 30, 2022

 

$

905

 

 

$

3,323

 

 

$

341

 

 

$

4,569

 

 

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Customer A

 

 

32

%

 

 

8

%

 

 

20

%

 

 

23

%

Customer B

 

 

21

%

 

 

35

%

 

 

16

%

 

 

27

%

Customer C

 

 

12

%

 

 

13

%

 

 

9

%

 

 

12

%

Customer D

 

 

21

%

 

 

15

%

 

 

20

%

 

 

11

%

Customer E

 

 

5

%

 

 

0

%

 

 

14

%

 

 

4

%

 

On June 15, 2017, the Company entered into a distributor agreement with Telcon RF Pharmaceutical, Inc., or Telcon, pursuant to which it 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. Telcon had the right to terminate the distributor agreement in certain circumstances for failure to obtain such product registrations, in which event the Company is obliged to repay Telcon the $10 million upfront fee. In January 2023, Telcon terminated the distributor agreement, and the upfront fee of $10 million is included as unearned revenue in other current liabilities as of September 30, 2023 and December 31, 2022, respectively. See Notes 6 and 11 and for additional details of the Company's agreement with Telcon.