Quarterly report [Sections 13 or 15(d)]

Revenues, net

v3.26.1
Revenues, net
 3 Months Ended
Mar. 31, 2026
Revenue From Contract With Customer [Abstract]  
Revenues, net

NOTE 3 — REVENUES, NET

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

 

For the three months ended March 31,

 

2026

 

 

2025

 

Endari® - US

$

1,376

 

 

70

%

 

$

2,055

 

 

86

%

Endari® - International

 

583

 

 

29

%

 

 

198

 

 

8

%

Other

 

23

 

 

1

%

 

 

153

 

 

6

%

Revenues, net

 

1,982

 

 

100

%

 

 

2,406

 

 

100

%

 

The following table summarizes the revenue allowance and accrual activities for the three months ended March 31, 2026 and March 31, 2025 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of January 1, 2026

 

$

1,029

 

 

$

8,129

 

 

$

178

 

 

$

9,336

 

Provision related to sales in the current year

 

 

127

 

 

 

532

 

 

 

17

 

 

 

676

 

Adjustments related to prior period sales

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Credits and payments made

 

 

(184

)

 

 

(373

)

 

 

—

 

 

 

(557

)

Balance as of March 31, 2026

 

$

972

 

 

$

8,288

 

 

$

195

 

 

$

9,455

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2025

 

$

1,135

 

 

$

6,812

 

 

$

138

 

 

$

8,085

 

Provision related to sales in the current year

 

 

192

 

 

 

746

 

 

 

27

 

 

 

965

 

Adjustments related to prior period sales

 

 

4

 

 

 

17

 

 

 

—

 

 

 

21

 

Credits and payments made

 

 

(251

)

 

 

(529

)

 

 

(81

)

 

 

(861

)

Balance as of March 31, 2025

 

$

1,080

 

 

$

7,046

 

 

$

84

 

 

$

8,210

 

 

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

 

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Customer A

 

 

13

%

 

 

20

%

Customer B

 

 

14

%

 

 

10

%

Customer C

 

 

16

%

 

 

30

%

Customer D

 

 

19

%

 

 

15

%

Customer E

 

 

26

%

 

 

1

%

 

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 $10 million upfront fee would become repayable to Telcon. In January 2023, Telcon terminated the distributor agreement, and the upfront fee of $10 million is included in other current liabilities as of March 31, 2026 and December 31, 2025. See Notes 5, 6 and 11 and 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 March 31, 2026 and December 31, 2025.