Annual report [Section 13 and 15(d), not S-K Item 405]

Revenues, Net

v3.26.1
Revenues, Net
 12 Months Ended
Dec. 31, 2025
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,

 

2025

 

 

2024

 

Endari® - US

$

9,048

 

 

73

%

 

$

13,478

 

 

81

%

Endari® - International

 

3,180

 

 

25

%

 

 

2,669

 

 

16

%

Other

 

225

 

 

2

%

 

 

506

 

 

3

%

Revenues, net

 

12,453

 

 

100

%

 

 

16,653

 

 

100

%

The following table summarizes the revenue allowance and accrual activities for the years ended December 31, 2025 and 2024 (in thousands). Approximately $33 thousand of trade discounts, allowances and charge-backs and returns are included in accounts receivable, net and $8.5 million of trade discounts, allowances and charge-backs, government rebates and other incentives, and returns are included in accounts payable and accrued expenses in the consolidated balance sheets:

 

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

 

 

1,228

 

 

 

3,566

 

 

 

153

 

 

 

4,947

 

Adjustments related to prior period sales

 

 

(72

)

 

 

23

 

 

 

47

 

 

 

(2

)

Credit and payments made

 

 

(1,233

)

 

 

(2,435

)

 

 

(925

)

 

 

(4,593

)

Balance as of December 31, 2024

 

 

1,135

 

 

 

6,812

 

 

 

138

 

 

 

8,085

 

Provision related to sales in the current year

 

 

836

 

 

 

3,033

 

 

 

111

 

 

 

3,980

 

Adjustments related to prior period sales

 

 

(2

)

 

 

32

 

 

 

 

 

 

30

 

Credit and payments made

 

 

(940

)

 

 

(1,748

)

 

 

(71

)

 

 

(2,759

)

Balance as of December 31, 2025

 

$

1,029

 

 

$

8,129

 

 

$

178

 

 

$

9,336

 

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,

 

 

2025

 

 

2024

 

Customer A

 

 

13

%

 

 

22

%

Customer B

 

 

23

%

 

 

23

%

Customer C

 

 

14

%

 

 

8

%

Customer D

 

 

12

%

 

 

18

%

Total

 

 

62

%

 

 

71

%

 

The Company is a party to a 2017 distributor agreement and 2018 amended 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 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 as of December 31, 2025 and 2024. Refer to Notes 11 and 12 for additional details of the Company’s agreements with Telcon.

 

In December 2025, the Company entered into a license and exclusive distribution agreement to NIT in which the Company granted NIT an exclusive license to sell the Company's rights to market, sell, and distribute Endari® and any generic

equivalents, or the Product in sickle cell disease in the U.S. and Canada. Under the agreement, the Company received a portion of upfront fee of $3 million which is included in unearned revenue in other current liabilities as of December 31, 2025.