Quarterly report pursuant to Section 13 or 15(d)

REVENUES, NET

v3.22.1
REVENUES, NET
3 Months Ended
Mar. 31, 2022
Revenue From Contract With Customer [Abstract]  
REVENUES, NET

NOTE 3 — REVENUES, NET

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

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Endari®

 

$

3,048

 

 

$

5,176

 

Other

 

 

186

 

 

$

159

 

Revenues, net

 

$

3,234

 

 

$

5,335

 

 

The following table summarizes the revenue allowance and accrual activities for the three months ended March 31, 2022 and March 31, 2021 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of December 31, 2021

 

$

1,480

 

 

$

3,134

 

 

$

540

 

 

$

5,154

 

Provision related to sales in the current year

 

 

428

 

 

 

435

 

 

 

30

 

 

 

893

 

Adjustments related prior period sales

 

 

(10

)

 

 

13

 

 

 

(47

)

 

 

(44

)

Credit and payments made

 

 

(1,064

)

 

 

(453

)

 

 

(32

)

 

 

(1,549

)

Balance as of March 31, 2022

 

$

834

 

 

$

3,129

 

 

$

491

 

 

$

4,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Customer A

 

 

1

%

 

 

63

%

Customer B

 

 

46

%

 

 

17

%

Customer C

 

 

15

%

 

 

9

%

Customer D

 

 

16

%

 

 

Total

 

 

78

%

 

 

89

%

 

 

The Company is party to a distributor agreement with Telcon Pharmaceutical RF, Inc., or Telcon pursuant to which the Company 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 $10 million in upfront fees and agreement to purchase from the Company specified minimum quantities of the PGLG. 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 fees. The upfront fees are included in other long-term liabilities as unearned revenue as of both March 31, 2022 and December 31, 2021. Refer to Notes 6 and 11 for additional details.