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REVENUE RECOGNITION AND RELATED ALLOWANCES
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND RELATED ALLOWANCES REVENUE RECOGNITION AND RELATED ALLOWANCES
Revenue Recognition
We recognize revenue using the following steps:
•Identification of the contract, or contracts, with a customer;
•Identification of the performance obligations in the contract;
•Determination of the transaction price, including the identification and estimation of variable consideration;
•Allocation of the transaction price to the performance obligations in the contract; and
•Recognition of revenue when we satisfy a performance obligation.
We derive our revenues primarily from sales of generic, rare disease, and established brand pharmaceutical products, royalties, and other pharmaceutical services. Revenue is recognized when our obligations under the terms of our contracts with customers are satisfied, which generally occurs when control of the products we sell is transferred to the customer. We estimate variable consideration after considering applicable information that is reasonably available. We generally do not have incremental costs to obtain contracts that would otherwise not have been incurred. We do not adjust revenue for the promised amount of consideration for the effects of a significant financing component because our customers generally pay us within 100 days.
All revenue recognized in the accompanying unaudited interim condensed consolidated statements of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue:
Three Months EndedSix Months Ended
Products and ServicesJune 30,
2023		June 30,
2022		June 30,
2023		June 30,
2022
(in thousands)
Sales of generic pharmaceutical products$63,317 $49,863 $127,030 $98,970 
Sales of established brand pharmaceutical products, royalties, and other pharmaceutical services28,926 13,790 55,669 27,868 
Sales of rare disease pharmaceutical products24,304 10,202 40,634 11,494 
Total net revenues$116,547 $73,855 $223,333 $138,332 
Three Months EndedSix Months Ended
Timing of Revenue RecognitionJune 30,
2023		June 30,
2022		June 30,
2023		June 30,
2022
(in thousands)
Performance obligations transferred at a point in time$116,547 $73,324 $222,958 $137,235 
Performance obligations transferred over time— 531 375 1,097 
Total$116,547 $73,855 $223,333 $138,332 
In the three and six months ended June 30, 2023 and 2022, we did not incur, and therefore did not defer, any material incremental costs to obtain or fulfill contracts. We recognized an increase of $5.0 million to net revenue from performance obligations satisfied in prior periods during the six months ended June 30, 2023, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. We recognized a decrease of $3.7 million to net revenue from performance obligations satisfied in prior periods during the six months ended June 30, 2022, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. As of June 30, 2023 and December 31, 2022, we did not have any contract assets related to revenue recognized based on percentage of completion but not yet billed. Our deferred revenue balance as of June 30, 2023, December 31, 2022, and December 31, 2021 was immaterial. For the three and six months ended June 30, 2023, we did not recognize deferred revenue. For the three and six months ended June 30, 2022, we recognized less than $0.1 million of revenue that was included in deferred revenue as of December 31, 2021. Deferred revenue is included in accrued expenses and other in the unaudited interim condensed consolidated balance sheets.
As of June 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations for all open contract manufacturing customer contracts was $4.1 million, which consists of firm orders for contract manufactured products. We will recognize revenue for these performance obligations as they are satisfied, which is anticipated within six months.
Variable consideration
Sales of our pharmaceutical products are subject to variable consideration due to chargebacks, government rebates, returns, administrative and other rebates, and cash discounts. Estimates for these elements of variable consideration require significant judgment.
The following table summarizes activity in the condensed consolidated balance sheets for accruals and allowances for the six months ended June 30, 2023 and 2022, respectively:
Accruals for Chargebacks, Returns, and Other Allowances
(in thousands)ChargebacksGovernment
Rebates		ReturnsAdministrative
Fees and Other
Rebates		Prompt
Payment
Discounts
Balance at December 31, 2021$94,066 $5,492 $35,831 $13,100 $4,642 
Accruals/Adjustments320,191 9,356 15,057 20,701 10,494 
Credits Taken Against Reserve(274,714)(5,408)(15,989)(19,283)(8,938)
Balance at June 30, 2022 (1)$139,543 $9,440 $34,899 $14,518 $6,198 
Balance at December 31, 2022$148,562 $10,872 $33,399 $9,442 $6,488 
Accruals/Adjustments290,826 11,100 5,995 25,606 11,028 
Credits Taken Against Reserve(362,253)(10,001)(9,596)(25,177)(12,653)
Balance at June 30, 2023 (1)$77,135 $11,971 $29,798 $9,871 $4,863 
______________________________________________
(1)Chargebacks and Prompt Payment Discounts are included as an offset to accounts receivable in the unaudited interim condensed consolidated balance sheets. Administrative Fees and Other Rebates are included as an offset to accounts receivable or as accrued expenses and other in the unaudited interim condensed consolidated balance sheets. Returns are included in returned goods reserve in the unaudited interim condensed consolidated balance sheets. Government Rebates are included in accrued government rebates in the unaudited interim condensed consolidated balance sheets.
Credit Concentration
Our customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, and pharmaceutical companies.
During the three months ended June 30, 2023, we had four customers that accounted for 10% or more of net revenues. During the six months ended June 30, 2023 and the three and six months ended June 30, 2022, we had three customers that accounted for 10% or more of net revenues. As of June 30, 2023, accounts receivable from these customers totaled 84% of accounts receivable, net.
The three customers represent the total percentage of net revenues as follows:
Three Months EndedSix Months Ended
June 30,
2023		June 30,
2022		June 30,
2023		June 30,
2022
Customer 132 %23 %32 %27 %
Customer 214 %19 %14 %19 %
Customer 313 %15 %13 %14 %
Customer 410 %6 %9 %4 %