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REVENUE RECOGNITION AND RELATED ALLOWANCES
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND RELATED ALLOWANCES REVENUE RECOGNITION AND RELATED ALLOWANCES
Revenue Recognition
The Company recognizes 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.
Revenues are primarily derived from sales of generic, rare disease, and established brand pharmaceutical products, royalties, and other pharmaceutical services. Revenue is recognized when obligations under the terms of contracts with customers are satisfied, which generally occurs when control of the products we sell is transferred to the customer. Variable consideration is estimated after the consideration of applicable information that is reasonably available. The Company generally does not have incremental costs to obtain contracts that would otherwise not have been incurred. The Company does 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 EndedNine Months Ended
Products and ServicesSeptember 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
(in thousands)
Sales of generic pharmaceutical products$70,593 $53,136 $197,623 $152,106 
Sales of established brand pharmaceutical products, royalties, and other pharmaceutical services31,502 18,083 87,171 45,951 
Sales of rare disease pharmaceutical products29,734 12,602 70,368 24,096 
Total net revenues$131,829 $83,821 $355,162 $222,153 
Three Months EndedNine Months Ended
Timing of Revenue RecognitionSeptember 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
(in thousands)
Performance obligations transferred at a point in time$131,829 $82,318 $354,787 $219,553 
Performance obligations transferred over time— 1,503 375 2,600 
Total$131,829 $83,821 $355,162 $222,153 
In the three and nine months ended September 30, 2023 and 2022, the Company did not incur, and therefore did not defer, any material incremental costs to obtain or fulfill contracts. The Company recognized an increase of $8.5 million to net revenue from performance obligations satisfied in prior periods during the nine months ended September 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 $2.6 million to net revenue from performance obligations satisfied in prior periods during the nine months ended September 30, 2022, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales.
As of September 30, 2023, there were no contract assets recorded which were related to revenue recognized based on percentage of completion but not yet billed. For the three and nine months ended September 30, 2023, no deferred revenue was recognized. For the three and nine months ended September 30, 2022, less than $0.1 million of deferred revenue was recognized 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 September 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations for all open contract manufacturing customer contracts was $4.0 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 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 nine months ended September 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/Adjustments480,626 14,104 18,751 30,475 15,746 
Credits Taken Against Reserve(480,203)(10,851)(20,598)(28,766)(15,751)
Balance at September 30, 2022 (1)$94,489 $8,745 $33,984 $14,809 $4,637 
Balance at December 31, 2022$148,562 $10,872 $33,399 $9,442 $6,488 
Accruals/Adjustments437,671 16,998 13,048 40,815 17,024 
Credits Taken Against Reserve(501,841)(16,947)(15,009)(39,316)(18,366)
Balance at September 30, 2023 (1)$84,392 $10,923 $31,438 $10,941 $5,146 
______________________________________________
(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
ANI's customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, and pharmaceutical companies.
During the three and nine months ended September 30, 2023, there were four customers that accounted for 10% or more of net revenues. During the three and nine months ended September 30, 2022, there were three customers that accounted for 10% or more of net revenues. As of September 30, 2023, accounts receivable from these customers totaled 85% of accounts receivable, net.
The three customers represent the total percentage of net revenues as follows:
Three Months EndedNine Months Ended
September 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
Customer 135 %23 %33 %26 %
Customer 212 %17 %13 %18 %
Customer 312 %16 %13 %15 %
Customer 413 %7 %10 %5 %