SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Percentage of Revenue Comprised of the Three Largest Customers

The table below includes the percentage of revenues comprised by the Company’s three largest wholesalers in each period presented:


	Year Ended December 31,
	2022		2021		2020
Largest wholesaler	31	%	31	%	31	%
Second largest wholesaler	23	%	28	%	31	%
Third largest wholesaler	22	%	26	%	25	%
Total	76	%	85	%	87	%

The year ended December 31, 2022 included the first full-year of ZILRETTA net product sales. The Company began recognizing revenue from net product sales of ZILRETTA on November 19, 2021, the date of the Flexion Acquisition (as defined herein).

Schedule of Useful Lives by Asset Category

Useful lives by asset category are as follows:


Asset Category						Useful Life
Computer equipment and software						1 to 3 years
Office furniture and equipment						5 years
Manufacturing and laboratory equipment						5 to 10 years

Fixed assets, net, summarized by major category, consist of the following (in thousands):


	December 31,
	2022		2021
Machinery and equipment	$	118,684	$	117,264
Leasehold improvements	61,302		59,740
Computer equipment and software	15,360		13,197
Office furniture and equipment	2,420		2,883
Construction in progress (1)	103,226		80,557
Total	300,992		273,641
Less: accumulated depreciation	(117,480)		(85,240)
Fixed assets, net	$	183,512	$	188,401
(1) The increase of $22.7 million in construction in progress is related to progress in the expansion of the Company’s manufacturing facilities, including an EXPAREL capacity expansion project at the Company’s Science Center Campus in San Diego, California and a ZILRETTA capital project at Thermo Fisher Scientific Pharma Services’s site in Swindon, England.

For information on useful lives by asset category, refer to Note 2, Summary of Significant Accounting Policies.