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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



	Years Ended December 31,
	2020		2019		2018
Customer 1	31	%	32	%	33	%
Customer 2	24	%	25	%	23	%
Customer 3	19	%	23	%	21	%

Schedule of disaggregation of revenue and revenue recognized



Products and Services	Years Ended December 31,
(in thousands)	2020		2019		2018
Sales of generic pharmaceutical products	$	147,257	$	128,729	$	117,451
Sales of branded pharmaceutical products		47,960		63,767		60,554
Sales of contract manufactured products		9,221		11,139		9,119
Royalties from licensing agreements		1,396		807		12,504
Product development services		1,858		1,125		1,019
Other⁽¹⁾		783		980		929
Total net revenues	$	208,475	$	206,547	$	201,576

(1)	Primarily includes laboratory services and royalties on sales of contract manufactured products



Timing of Revenue Recognition	Years Ended December 31,
(in thousands)	2020		2019		2018
Performance obligations transferred at a point in time	$	206,617	$	205,422	$	200,557
Performance obligations transferred over time		1,858		1,125		1,019
Total	$	208,475	$	206,547	$	201,576

Schedule of accruals and allowances

The following table summarizes activity in the consolidated balance sheets for accruals and allowances for the years ended December 31, 2020, 2019, and 2018:


	Accruals for Chargebacks, Returns, and Other Allowances
							Administrative		Prompt
			Government				Fees and Other		Payment
(in thousands)	Chargebacks		Rebates		Returns		Rebates		Discounts
Balance at December 31, 2018 (1)	$	39,007	$	8,974	$	12,552	$	7,353	$	2,009
Accruals/Adjustments		260,771		17,549		19,105		36,874		10,789
Credits Taken Against Reserve		(249,896)		(17,622)		(15,062)		(35,946)		(10,249)
Balance at December 31, 2019 (1)	$	49,882	$	8,901	$	16,595	$	8,281	$	2,549
Accruals/Adjustments		408,265		14,240		30,333		37,588		14,347
Credits Taken Against Reserve		(369,401)		(15,315)		(19,773)		(36,963)		(13,057)
Balance at December 31, 2020 (1)	$	88,746	$	7,826	$	27,155	$	8,906	$	3,839

(1)Chargebacks are included as a reduction to accounts receivable, net of chargebacks and other allowances in the consolidated balance sheets. Administrative Fees and Other Rebates and Prompt Payment Discounts are included as a reduction to accounts receivable, net of chargebacks and other allowances or accrued expenses and other in the consolidated balance sheets. Returns are included in returned goods reserve in the consolidated balance sheets. Government Rebates are included in accrued government rebates in the consolidated balance sheets.

Schedule of property, plant and equipment, useful life


Buildings and improvements	20	-	40	years
Machinery, furniture, and equipment	1		10	years

Schedule of Earnings per share, basic and diluted

Earnings per share for the years ended December 31, 2020, 2019, and 2018 are calculated for basic and diluted earnings (loss) per share as follows:


	Basic						Diluted
(in thousands, except per share amounts)	Years Ended December 31,						Years Ended December 31,
	2020		2019		2018		2020		2019		2018
Net (loss)/income	$	(22,548)	$	6,094	$	15,494	$	(22,548)	$	6,094	$	15,494
Net income allocated to restricted stock		—		(97)		(154)		—		(97)		(154)
Net (loss)/income allocated to common shares	$	(22,548)	$	5,997	$	15,340	$	(22,548)	$	5,997	$	15,340
Basic Weighted-Average Shares Outstanding		11,964		11,841		11,677		11,964		11,841		11,677
Dilutive effect of stock options and ESPP								—		103		95
Dilutive effect of Notes								—		96		—
Diluted Weighted-Average Shares Outstanding								11,964		12,040		11,772

(Loss)/Earnings per share	$	(1.88)	$	0.51	$	1.31	$	(1.88)	$	0.50	$	1.30

Schedule of revenue from company's revenue by geographic operations

The following table depicts the Company’s revenue by geographic operations during the following periods:


(in thousands)	Years Ended December 31,
Location of Operations	2020		2019		2018
United States	$	202,881	$	199,663	$	196,886
Canada		5,594		6,884		4,690
Total Revenue	$	208,475	$	206,547	$	201,576

Schedule of company's property and equipment, net according to geographic location

The following table depicts the Company’s property and equipment, net according to geographic location as of:


(in thousands)	December 31, 2020		December 31, 2019
United States	$	26,960	$	26,708
Canada		14,309		13,843
Total property and equipment, net	$	41,269	$	40,551