Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.21.2
REVENUES
3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]  
REVENUES

NOTE 3 — REVENUES

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

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Endari®

 

$

5,176

 

 

$

6,714

 

Other

 

 

159

 

 

 

240

 

Revenues, net

 

$

5,335

 

 

$

6,954

 

 

The following table summarizes the revenue allowance and accrual activities for the three months ended March 31, 2021 and March 31, 2020 (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

 

 

575

 

 

 

864

 

 

 

57

 

 

 

1,496

 

Adjustments related prior period sales

 

 

14

 

 

 

2

 

 

 

(37

)

 

 

(21

)

Credit and payments made

 

 

(281

)

 

 

(792

)

 

 

 

 

 

(1,073

)

Balance as of March 31, 2021

 

$

442

 

 

$

2,193

 

 

$

493

 

 

$

3,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

$

228

 

 

$

1,354

 

 

$

315

 

 

$

1,897

 

Provision related to sales in the current year

 

 

942

 

 

 

1,122

 

 

 

71

 

 

 

2,135

 

Adjustments related prior period sales

 

 

16

 

 

 

(44

)

 

 

(22

)

 

 

(50

)

Credit and payments made

 

 

(794

)

 

 

(709

)

 

 

 

 

 

(1,503

)

Balance as of March 31, 2020

 

$

392

 

 

$

1,723

 

 

$

364

 

 

$

2,479

 

 

The following table summarizes revenues attributable to each of our customers that accounted for 10% or more of our total revenues (as a percentage of net revenues):

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Customer A

 

 

63

%

 

 

54

%

Customer B

 

 

17

%

 

 

27

%

The Company is party to a distributor agreement with 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 us 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 return to Telcon the $10 million upfront fee. The upfront fee of $10 million is included in other long-term liabilities as unearned revenue as of March 31, 2021 and December 31, 2020.  Refer to Note 11 for additional details.