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

12 Months Ended

Dec. 31, 2021

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



	Years Ended December 31,
	2021		2020		2019
Customer 1	29	%	31	%	32	%
Customer 2	23	%	24	%	25	%
Customer 3	16	%	19	%	23	%

Schedule of disaggregation of revenue and revenue recognized



Products and Services	Years Ended December 31,
(in thousands)	2021		2020		2019
Sales of generic pharmaceutical products	$	143,571	$	147,257	$	128,729
Sales of branded pharmaceutical products		47,561		47,960		63,767
Sales of contract manufactured products		10,042		9,221		11,139
Royalties from licensing agreements		11,795		1,396		807
Product development services		1,310		1,858		1,125
Other		1,857		783		980
Total net revenues	$	216,136	$	208,475	$	206,547



Timing of Revenue Recognition	Years Ended December 31,
(in thousands)	2021		2020		2019
Performance obligations transferred at a point in time	$	214,826	$	206,617	$	205,422
Performance obligations transferred over time		1,310		1,858		1,125
Total	$	216,136	$	208,475	$	206,547

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, 2021, 2020, and 2019:


	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, 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
Accruals/Adjustments		492,374		15,308		24,081		35,225		15,633
Credits Taken Against Reserve		(487,054)		(17,642)		(15,405)		(31,031)		(14,830)
Balance at December 31, 2021 (1)	$	94,066	$	5,492	$	35,831	$	13,100	$	4,642

(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, 2021, 2020, and 2019 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,
	2021		2020		2019		2021		2020		2019
Net (loss)/income	$	(42,603)	$	(22,548)	$	6,094	$	(42,603)	$	(22,548)	$	6,094
Net income allocated to participating securities		—		—		(97)		—		—		(97)
Dividends on Series A convertible preferred stock		(190)		—		—		(190)		—		—
Net (loss)/income allocated to common shares	$	(42,793)	$	(22,548)	$	5,997	$	(42,793)	$	(22,548)	$	5,997
Basic Weighted-Average Shares Outstanding		12,596		11,964		11,841		12,596		11,964		11,841
Dilutive effect of stock options and ESPP								—		—		103
Dilutive effect of Notes								—		—		96
Diluted Weighted-Average Shares Outstanding								12,596		11,964		12,040

(Loss)/Income per share	$	(3.40)	$	(1.88)	$	0.51	$	(3.40)	$	(1.88)	$	0.50

Schedule of revenue of revenue by geographic operations

The following table depicts our revenue by geographic operations during the following periods:


(in thousands)	Years Ended December 31,
Location of Operations	2021		2020		2019
United States	$	211,893	$	202,881	$	199,663
Canada		4,243		5,594		6,884
Total Revenue	$	216,136	$	208,475	$	206,547

Schedule of property and equipment by geographic location


(in thousands)	Years Ended December 31,
Location of Operations	2021		2020		2019
United States	$	211,893	$	202,881	$	199,663
Canada		4,243		5,594		6,884
Total Revenue	$	216,136	$	208,475	$	206,547