v3.26.1
Revenues, net
 6 Months Ended
Jun. 30, 2026
Revenue From Contract With Customer [Abstract]  
Revenues, net

NOTE 3 — REVENUES, NET

Revenues, net by category were as follows (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Endari® - US

 

$

6,001

 

 

 

95

%

 

$

2,323

 

 

 

83

%

 

$

7,377

 

 

 

89

%

 

$

4,378

 

 

 

84

%

Endari® - International

 

 

295

 

 

 

5

%

 

 

474

 

 

 

16

%

 

 

878

 

 

 

11

%

 

 

672

 

 

 

13

%

Other

 

 

22

 

 

 

0

%

 

 

20

 

 

 

1

%

 

 

45

 

 

 

0

%

 

 

173

 

 

 

3

%

Revenues, net

 

 

6,318

 

 

 

100

%

 

 

2,817

 

 

 

100

%

 

 

8,300

 

 

 

100

%

 

 

5,223

 

 

 

100

%

 

The following table summarizes the revenue allowance and accrual activities for the six months ended June 30, 2026 and June 30, 2025 (in thousands):

 

 

Trade Discounts, Allowances and Chargebacks

 

 

Government Rebates and Other Incentives

 

 

Returns

 

 

Total

 

Balance as of January 1, 2026

 

$

1,029

 

 

$

8,129

 

 

$

178

 

 

$

9,336

 

Provision related to sales in the current year

 

 

208

 

 

 

751

 

 

 

31

 

 

 

990

 

Adjustments related to prior period sales

 

 

(7

)

 

 

(6

)

 

 

—

 

 

 

(13

)

Credits and payments made

 

 

(329

)

 

 

(640

)

 

 

—

 

 

 

(969

)

Balance as of June 30, 2026

 

$

901

 

 

$

8,234

 

 

$

209

 

 

$

9,344

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2025

 

$

1,135

 

 

$

6,812

 

 

$

138

 

 

$

8,085

 

Provision related to sales in the current year

 

 

390

 

 

 

1,595

 

 

 

55

 

 

 

2,040

 

Adjustments related to prior period sales

 

 

(2

)

 

 

27

 

 

 

—

 

 

 

25

 

Credits and payments made

 

 

(566

)

 

 

(980

)

 

 

(93

)

 

 

(1,639

)

Balance as of June 30, 2025

 

$

957

 

 

$

7,454

 

 

$

100

 

 

$

8,511

 

 

The following table summarizes revenues attributable to each of the customers that accounted for 10% or more of our net revenues in any of the periods shown:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Customer A

 

 

75

%

 

 

—

 

 

 

57

%

 

 

—

 

Customer B

 

 

4

%

 

 

12

%

 

 

6

%

 

 

16

%

Customer C

 

 

4

%

 

 

15

%

 

 

7

%

 

 

28

%

Customer D

 

 

3

%

 

 

27

%

 

 

6

%

 

 

13

%

Customer E

 

 

7

%

 

 

17

%

 

 

9

%

 

 

16

%

Customer F

 

 

—

 

 

 

14

%

 

 

6

%

 

 

8

%

 

 

On June 15, 2017, the Company entered into a distributor agreement with Telcon RF Pharmaceutical, Inc., or Telcon, pursuant to which it granted Telcon exclusive rights to the Company’s prescription grade L-glutamine (“PGLG”) oral powder for the treatment of diverticulosis in South Korea, Japan and China in exchange for Telcon’s payment of a $10 million upfront fee and agreement to purchase from the Company specified minimum quantities of the PGLG. Telcon had the right to terminate the distributor agreement in certain circumstances for failure to obtain such product registrations, in which event the $10 million upfront fee would become repayable to Telcon. In January 2023, Telcon terminated the distributor agreement, and the upfront fee of $10 million is included in other current liabilities as of June 30, 2026 and December 31, 2025. See Notes 5, 6 and 11 for additional details of the Company's agreements with Telcon.

 

In December 2025, the Company entered into a license and exclusive distribution agreement to NIT in which the Company granted NIT an exclusive license to sell the Company's rights to market, sell, and distribute Endari® and any generic equivalents, or the Product in sickle cell disease in the U.S. and Canada. As the agreement became effective on May 15, 2026, the Company transferred 3,000 cartons of Endari®, and received remaining upfront fee, of which $4.6 million was recognized as Endari® - US revenues on the Effective Date and remaining balance will be amortized over 3 years. As of June 30, 2026, $1.2 million and $2.2 million of unearned revenue is included in other current liabilities and other long term liabilities, respectively. As of December 31, 2025, $3.0 million was included in unearned revenue in other current liabilities. The Company recognized royalty fee of approximately $148,000 as Endari® - US revenues for the three and six months ended June 30, 2026. No royalty fees were recognized for the three and six months ended June 30, 2025.