REVENUE RECOGNITION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||
| REVENUE RECOGNITION | NOTE 5 – REVENUE RECOGNITION
The Company’s sole source of revenue is product revenue from the sale of pharmaceutical products through wholesale distribution channels. ARBLI™ (SCN-102, Losartan Potassium Oral Suspension) received FDA approval in March 2025 and commenced commercialization in the third quarter of 2025. Revenue is recognized when control transfers to the wholesale distributor, generally upon delivery.
Revenue is measured at the net transaction price equal to the gross invoice price reduced by estimated variable consideration. Gross-to-net adjustments include:
Chargebacks. The difference between the invoice price charged to wholesale distributors and the lower contract price distributors extend to end-customers (retail pharmacies, hospitals, clinics). Estimated based on expected sell-through and contractual terms.
Wholesaler Rebates and Distribution Service Fees. Fees and rebates paid to wholesale distributors and group purchasing organizations (“GPOs”) under contractual arrangements. Estimated based on contracted rates and expected sales volumes.
Prompt Pay Discounts. Discounts offered to wholesale distributors for timely payment, estimated based on contractual terms.
Product Returns. Returns accepted under limited conditions (generally damaged, expired, or defective product). Returns have not been material to date given the early stage of ARBLI™ commercialization.
Estimates of variable consideration are reassessed each reporting period. Changes in estimates are recorded as adjustments to revenue in the period identified. Accrued gross-to-net liabilities are included within accrued liabilities on the consolidated balance sheets.
Revenue disaggregated by product for the years ended December 31, 2025 and 2024 is as follows:
Revenue for the year ended December 31, 2024 reflected residual pharmaceutical wholesale activity prior to the IPS disposition on April 30, 2025, which is classified as discontinued operations.
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