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

12 Months Ended

Dec. 31, 2022

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



	Years Ended December 31,
	2022		2021		2020
Customer 1	26	%	29	%	31	%
Customer 2	18	%	23	%	24	%
Customer 3	15	%	16	%	19	%

Schedule of disaggregation of revenue and revenue recognized



Products and Services	Years Ended December 31,
(in thousands)	2022		2021		2020
Sales of generic pharmaceutical products	$	210,121	$	143,571	$	147,257
Sales of established brand pharmaceutical products		39,463		47,561		47,960
Sales of rare disease pharmaceutical products		41,686		—		—
Sales of contract manufactured products		16,106		10,042		9,221
Royalties from licensing agreements		5,367		11,795		1,396
Product development services		2,949		1,310		1,858
Other		693		1,857		783
Total net revenues	$	316,385	$	216,136	$	208,475



Timing of Revenue Recognition	Years Ended December 31,
(in thousands)	2022		2021		2020
Performance obligations transferred at a point in time	$	313,436	$	214,826	$	206,617
Performance obligations transferred over time		2,949		1,310		1,858
Total	$	316,385	$	216,136	$	208,475

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, 2022, 2021, and 2020:


	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, 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
Accruals/Adjustments		642,409		20,657		23,252		42,044		21,302
Credits Taken Against Reserve		(587,913)		(15,277)		(25,684)		(45,702)		(19,456)
Balance at December 31, 2022 (1)	$	148,562	$	10,872	$	33,399	$	9,442	$	6,488

(1)Chargebacks are included as an offset 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 lives


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, 2022, 2021, and 2020 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,
	2022		2021		2020		2022		2021		2020
Net loss	$	(47,896)	$	(42,603)	$	(22,548)	$	(47,896)	$	(42,603)	$	(22,548)
Net income allocated to participating securities		—		—		—		—		—		—
Dividends on Series A convertible preferred stock		(1,625)		(190)		—		(1,625)		(190)		—
Net loss available to common shareholders	$	(49,521)	$	(42,793)	$	(22,548)	$	(49,521)	$	(42,793)	$	(22,548)
Basic Weighted-Average Shares Outstanding		16,260		12,596		11,964		16,260		12,596		11,964
Dilutive effect of stock options and ESPP								—		—		—
Diluted Weighted-Average Shares Outstanding								16,260		12,596		11,964

Loss per share	$	(3.05)	$	(3.40)	$	(1.88)	$	(3.05)	$	(3.40)	$	(1.88)