| SCHEDULE OF ACCRUALS AND ALLOWANCES |
The following table summarizes activity and ending balances of the Company’s variable consideration provisions in the consolidated financial statements for the six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Accruals for Chargebacks, Returns, and Other Allowances | | Chargebacks | | Rebates | | Returns | | Administrative
Fees and Other
Rebates | | Co-Pay Assistance | | Prompt Pay
Discounts | | Total | | Balance at December 31, 2024(1) | $ | 960,000 | | | $ | 12,360,000 | | | $ | 1,449,000 | | | $ | 32,873,000 | | | $ | 9,612,000 | | | $ | 2,377,000 | | | $ | 59,631,000 | | | Accruals/adjustments | 11,163,000 | | | 11,128,000 | | | 4,615,000 | | | 40,093,000 | | | 30,771,000 | | | 2,346,000 | | | 100,116,000 | | | Credits taken against reserve | (7,706,000) | | | (7,696,000) | | | (4,828,000) | | | (53,480,000) | | | (37,193,000) | | | (3,185,000) | | | (114,088,000) | | | Balance at June 30, 2025(1) | $ | 4,417,000 | | | $ | 15,792,000 | | | $ | 1,236,000 | | | $ | 19,486,000 | | | $ | 3,190,000 | | | $ | 1,538,000 | | | $ | 45,659,000 | | | | | | | | | | | | | | | | | Balance at December 31, 2025(1) | $ | 11,027,000 | | | $ | 28,217,000 | | | $ | 8,018,000 | | | $ | 16,540,000 | | | $ | 2,085,000 | | | $ | 2,494,000 | | | $ | 68,381,000 | | | Accruals/adjustments | 9,032,000 | | | 20,934,000 | | | 2,177,000 | | | 70,944,000 | | | 10,870,000 | | | 1,698,000 | | | 115,655,000 | | | Credits taken against reserve | (12,036,000) | | | (15,468,000) | | | (5,834,000) | | | (63,632,000) | | | (12,743,000) | | | (3,258,000) | | | (112,971,000) | | | Balance at June 30, 2026(1) | $ | 8,023,000 | | | $ | 33,683,000 | | | $ | 4,361,000 | | | $ | 23,852,000 | | | $ | 212,000 | | | $ | 934,000 | | | $ | 71,065,000 | |
________________ (1)Chargebacks and other allowances are included as an offset to accounts receivable in the condensed consolidated balance sheets. Administrative Fees and Other Rebates, Prompt Pay Discounts and Returns are included as a reduction to accounts receivable, net of chargebacks and other allowances, or accrued expenses and other in the condensed consolidated balance sheets. Government rebates are included in accrued rebates and copay assistance in the condensed consolidated balance sheets.
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