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REVENUE RECOGNITION AND RELATED ALLOWANCES
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND RELATED ALLOWANCES REVENUE RECOGNITION AND RELATED ALLOWANCES
Revenue Recognition
The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized 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 rare disease, generic, 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 sold are 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 Ended September 30,Nine Months Ended September 30,
Products and Services (in thousands)2024202320242023
Rare Disease
Sales of Cortrophin Gel$52,555 $29,734 $138,685 $70,368 
Sales of ILUVIEN and YUTIQ3,871 — 3,871 — 
Total sales of rare disease pharmaceutical products$56,426 $29,734 $142,556 $70,368 
Generics, Established Brands, and Other
Sales of generic pharmaceutical products$78,223 $70,593 $222,404 $197,623 
Sales of established brand pharmaceutical products, royalties, and other pharmaceutical services13,683 31,502 58,842 87,171 
Total sales of generic and established brand pharmaceutical products, royalties, and other pharmaceuticals services91,906 102,095 281,246 284,794 
Total net revenues$148,332 $131,829 $423,802 $355,162 
Three Months Ended September 30,Nine Months Ended September 30,
Timing of Revenue Recognition (in thousands)2024202320242023
Performance obligations transferred at a point in time$148,332 $131,829 $423,802 $354,787 
Performance obligations transferred over time— — — 375 
Total$148,332 $131,829 $423,802 $355,162 
In the three and nine months ended September 30, 2024 and 2023, the Company did not incur, and therefore did not defer, any material incremental costs to obtain or fulfill contracts. The Company recognized a decrease of $3.3 million to net revenue from performance obligations satisfied in prior periods during the nine months ended September 30, 2024, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. 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. Additionally, as of September 30, 2024, and December 31, 2023, there was deferred revenue of approximately $5.0 million and $0.0 million, respectively, recorded on the condensed consolidated balance sheets in accrued expenses and other.
As of September 30, 2024, the aggregate amount of the transaction price allocated to the remaining performance obligations for all open contract manufacturing customer contracts was $3.8 million, which consists of firm orders for contract manufactured products. The Company recognizes 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, 2024 and 2023, respectively:
Accruals for Chargebacks, Returns, and Other Allowances
(in thousands)ChargebacksGovernment
Rebates		ReturnsAdministrative
Fees and Other
Rebates		Prompt
Payment
Discounts
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 
Balance at December 31, 2023$84,208 $12,168 $29,678 $11,412 $4,865 
Impact of Alimera acquisition95 — 3,095 671 — 
Accruals/Adjustments403,201 19,757 28,737 44,622 17,159 
Credits Taken Against Reserve(410,508)(21,232)(24,442)(43,486)(17,218)
Balance at September 30, 2024 (1)$76,996 $10,693 $37,068 $13,219 $4,806 
______________________________________________
(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, pharmaceutical companies, hospitals, and healthcare providers.
During the three and nine months ended September 30, 2024, there were four customers that accounted for 10% or more of net revenues. During the three and nine months ended September 30, 2023, there were four customers that accounted for 10% or more of net revenues. As of September 30, 2024, accounts receivable from five customers totaled 71% of Accounts receivable, net.
The four customers represent the total percentage of net revenues as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Customer 120 %35 %26 %33 %
Customer 210 %12 %12 %13 %
Customer 314 %12 %12 %13 %
Customer 417 %13 %15 %10 %