Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.22.2.2
REVENUES
 9 Months Ended
Sep. 30, 2022
Revenue From Contract With Customer [Abstract]  
REVENUES

NOTE 3 — REVENUES

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

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Endari®

 

$

4,763

 

 

$

5,590

 

 

$

12,072

 

 

$

17,186

 

Other

 

 

177

 

 

 

176

 

 

$

389

 

 

 

404

 

Revenues, net

 

$

4,939

 

 

$

5,766

 

 

$

12,460

 

 

$

17,590

 

 

The following table summarizes the revenue allowance and accrual activities for the nine months ended September 30, 2022 and September 30, 2021 (in thousands):

 

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of December 31, 2021

 

$

1,481

 

 

$

3,133

 

 

$

539

 

 

$

5,153

 

Provision related to sales in the current year

 

 

1,859

 

 

 

1,828

 

 

 

210

 

 

 

3,897

 

Adjustments related to prior period sales

 

 

(56

)

 

 

18

 

 

 

569

 

 

 

531

 

Credits and payments made

 

 

(2,379

)

 

 

(1,656

)

 

 

(977

)

 

 

(5,012

)

Balance as of September 30, 2022

 

$

905

 

 

$

3,323

 

 

$

341

 

 

$

4,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

$

134

 

 

$

2,119

 

 

$

473

 

 

$

2,726

 

Provision related to sales in the current year

 

 

2,374

 

 

 

2,627

 

 

 

188

 

 

 

5,189

 

Adjustments related to prior period sales

 

 

13

 

 

 

8

 

 

 

(111

)

 

 

(90

)

Credits and payments made

 

 

(1,217

)

 

 

(2,201

)

 

 

(20

)

 

 

(3,438

)

Balance as of September 30, 2021

 

$

1,304

 

 

$

2,553

 

 

$

530

 

 

$

4,387

 

 

 


 

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 September 30,

 

 

Nine months ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Customer A

 

 

9

%

 

 

31

%

 

 

23

%

 

 

47

%

Customer B

 

 

35

%

 

 

49

%

 

 

27

%

 

 

35

%

Customer C

 

 

13

%

 

 

12

%

 

 

12

%

 

 

10

%

Customer D

 

 

15

%

 

 

0

%

 

 

11

%

 

 

0

%

Customer E

 

 

14

%

 

 

0

%

 

 

7

%

 

 

0

%

 

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 a $10 million upfront fee 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 specified in the distributor agreement 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 fee is included in other long-term liabilities as unearned revenue as of September 30, 2022 and December 31, 2021. Refer to Note 6 and 11 and for additional transaction details.