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REVENUE
 6 Months Ended
Jun. 30, 2026
Revenues:  
REVENUE

NOTE 3 – REVENUE

 

Revenue comprises the following categories (in thousands):

 

   2026   2025   2026   2025 
   For the three months ended June 30,   For the six months ended June 30, 
   2026   2025   2026   2025 
                 
Product revenue, net  $11,380   $—   $20,100   $— 
License and other revenues   —    400    —    400 
Total revenues  $11,380   $400   $20,100   $400 

 

Allowances and discounts

 

Revenue from product sales is reduced at the time of recognition for payor rebates, prompt pay discounts and co-payment assistance, which are attributed to various commercial arrangements and government programs. The following table summarizes changes in allowances and discounts for the six months ended June 30, 2026 (in thousands):

  

   Rebates   Prompt Pay   Co-payment Assistance   Total 
                 
Balance at December 31, 2025  $727   $—   $—   $727 
Provisions   916    236    100    1,252 
Payments/Credits   (727)   (189)   (3)   (919)
Balance at June 30, 2026  $916   $47   $97   $1,060 

 

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) income.

 

 

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):

 

      
Deferred revenue balance as of December 31, 2025  $— 
Additions to deferred revenue during the period   677 
Revenue recognized during the period   — 
Deferred revenue balance as of June 30, 2026  $677