Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.24.2.u1
REVENUES
 3 Months Ended
Mar. 31, 2024
Revenue From Contract With Customer [Abstract]  
REVENUES

NOTE 3 — REVENUES

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

 

 

Three months ended March 31,

 

 

 

2024

 

 

2023

 

Endari®

 

$

2,344

 

 

$

6,515

 

Other

 

 

162

 

 

 

238

 

Revenues, net

 

$

2,506

 

 

$

6,753

 

The following table summarizes the revenue allowance and accrual activities for the three months ended March 31, 2024 and March 31, 2023 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of December 31, 2023

 

$

1,212

 

 

$

5,658

 

 

$

863

 

 

$

7,733

 

Provision related to sales in the current year

 

 

205

 

 

 

577

 

 

 

25

 

 

 

807

 

Adjustments related to prior period sales

 

 

(50

)

 

 

51

 

 

 

—

 

 

 

1

 

Credits and payments made

 

 

(529

)

 

 

(553

)

 

 

(645

)

 

 

(1,727

)

Balance as of March 31, 2024

 

$

838

 

 

$

5,733

 

 

$

243

 

 

$

6,814

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2022

 

$

1,358

 

 

$

3,718

 

 

$

415

 

 

$

5,491

 

Provision related to sales in the current year

 

 

425

 

 

 

819

 

 

 

106

 

 

 

1,350

 

Adjustments related to prior period sales

 

 

(213

)

 

 

130

 

 

 

—

 

 

 

(83

)

Credits and payments made

 

 

(716

)

 

 

(597

)

 

 

(150

)

 

 

(1,463

)

Balance as of March 31, 2023

 

$

854

 

 

$

4,070

 

 

$

371

 

 

$

5,295

 

 

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

 

 

 

Three months ended March 31,

 

 

2024

 

 

2023

 

Customer A

 

 

46

%

 

 

20

%

Customer B

 

 

39

%

 

 

15

%

Customer D

 

 

2

%

 

 

16

%

Customer F

 

 

1

%

 

 

23

%

 

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 March 31, 2024 and December 31, 2023. See Notes 6, 11 and 12 and for additional details of the Company's agreements with Telcon.