REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2022

REVENUE RECOGNITION.

REVENUE RECOGNITION

NOTE 2 - REVENUE RECOGNITION

Gross-to-Net Sales Adjustments

To date our only source of product revenue has been from the U.S. sales of UKONIQ, which we began shipping to our customers in February 2021. The voluntary withdrawal of UKONIQ from the U.S. market was announced on April 15, 2022. Effective May 31, 2022, UKONIQ was officially withdrawn from the market. We record our best estimate for sales discounts and allowances to which customers are likely to be entitled. The reconciliation of gross product sales to net product sales by each significant category of gross-to-net adjustments was as follows for the year ended December 31, 2022:

(in thousands)	Year ended
	December 31,		December 31,
	2022		2021
Gross product revenue	$	4,119	$	8,172
Gross-to-net adjustments:
Chargebacks and administrative fees		(367)		(840)
Trade discounts and allowances		(182)		(383)
Government rebates and co-payment assistance		(229)		(372)
Sales returns and allowances		(708)		(40)
Total gross-to-net adjustments(1)	$	(1,486)	$	(1,635)
Net product revenue	$	2,633	$	6,537

(1)As of December 31, 2022 and 2021, approximately $0.2 million and $0.4 million of estimated gross-to-net-accruals have been recorded as a reduction of accounts receivable, net and within accounts payable and accrued expenses on the consolidated balance sheets.