REVENUE |
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| REVENUE | NOTE 3 – REVENUE
Revenue comprises the following categories (in thousands):
Concentration of credit risk
The Company’s total percentage of revenue was comprised of the following concentrations from its largest customers, based on whose revenue concentration is greater than 10% of total revenue in the periods disclosed below.
Allowances and discounts
Revenue from product sales is reduced at the time of recognition for payor rebates, co-payment assistance and prompt pay discounts, which are attributed to various commercial arrangements and government programs. The following table summarizes changes in allowances and discounts for the three months ended March 31, 2026 (in thousands):
Rebate and co-payment assistance accruals are included in accrued expenses on the condensed consolidated balance sheets. Prompt pay is recorded as an allowance against accounts receivable, net on the condensed consolidated balance sheets. Provision for rebates, prompt pay and other co-payment assistance are recorded as a reduction to product revenue, net on the condensed consolidated statements of operations and comprehensive loss.
Deferred revenue
The Company’s contracts can include the right to receive an outcomes-based rebate and a subsequent treatment discount of ZEVASKYN® under certain conditions. The Company has determined that the rebate and discount create a material right and allocates transaction consideration to ZEVASKYN® and the material right on a relative standalone selling price basis. The standalone selling price for ZEVASKYN® is the wholesale acquisition cost. The standalone selling price for the material right is determined by quantifying the discount a customer would receive upon exercise of the option adjusting for the likelihood the option will be exercised. Transaction consideration allocated to the material right is deferred and recognized when either (a) the subsequent purchase of ZEVASKYN® occurs, or (b) the time period during which a subsequent purchase of ZEVASKYN® could be made, expires.
The following table provides a summary of the activity on the deferred revenue (in thousands):
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