v3.26.1
Note 12 - Revenue From Product Sales
3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 12  Revenue From Product Sales

 

Net product sales consist of the following for the three months ended March 31, 2026 and 2025 (in thousands):

 

  

Three Months Ended

 
  

March 31,

 
  

2026

  

2025

 

Jelmyto

 $21,713  $20,254 

Zusduri

  29,246    

Total Revenue

 $50,959  $20,254 

 

All product sales of Jelmyto and Zusduri are recognized through the Company's arrangements with two customers as defined by ASC 606, both of which are third-party national specialty distributors. The Company's largest customer comprised approximately 58% of product sales for the three months ended  March 31, 2026, and over 85% of product sales for the three months ended March 31, 2025. The Company's largest customer comprised approximately 48% and 59% of accounts receivable at March 31, 2026 and  December 31, 2025, respectively. Net revenue recognized includes gross revenue and management’s estimate of returns, consideration paid to the customers, such as rebates, chargebacks relating to differences between the wholesale acquisition cost and the contracted price offered to the end consumer, chargebacks relating to 340B drug pricing programs and other government sponsored programs, Medicaid drug rebate programs, the Company’s copay assistance program, and Medicare refunds for discarded drug. The Company does not anticipate any Medicare refunds for discarded drug for Zusduri. The Company estimates these elements of variable consideration based on the contractual or statutory terms governing the arrangements and the Company’s historical experience, and constrains the net revenue recognized for product sales to the value that is not probable to be reversed when the uncertainty associated with the variable consideration is subsequently resolved. Reserves for chargebacks and returns are net settled and recognized as contra accounts receivable while the remaining reserves are recognized within other current liabilities on the condensed consolidated balance sheets. The following table shows the activity with respect to sales reserves for the period ended  March 31, 2026 and 2025 (in thousands):

 

  

Reserves related to government sponsored programs

  

Medicare refunds for discarded drug reserve

  

Other reserves

  

Total accrued sales reserves

 
                 

Balance as of December 31, 2025

 $1,530  $4,022  $3,849  $9,401 

Accruals

  5,605   884   6,545   13,034 

Utilizations

  (5,566)     (4,966)  (10,532)

Balance as of March 31, 2026

 $1,569  $4,906  $5,428  $11,903 
                 

Balance as of December 31, 2024

 $887  $7,729  $1,946  $10,562 

Accruals

  3,686   903   2,713   7,302 

Utilizations

  (3,889)  (3,809)  (2,926)  (10,624)

Balance as of March 31, 2025

 $684  $4,823  $1,733  $7,240