Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers:

The main types of revenue contracts are:

•Product sales-Product sales amounts relate to sales of BELBUCA, Symproic and BUNAVAIL. These sales are recognized as revenue when control is transferred to the wholesaler in an amount that reflects the consideration expected to be received. In March 2020 the Company announced it will discontinue marketing of BUNAVAIL in 2020.

•Product royalty revenues-Product royalty revenue amounts are based on sales revenue of the PAINKYL^TM product under the Company’s license agreement with TTY and the BREAKYL^TM product under the Company’s license agreement with Meda AB, which was acquired by Mylan N.V. (which we refer to herein as Mylan). Product royalty revenues are recognized when control of the product is transferred to the license partner in an amount that reflects the consideration expected to be received. Supplemental sales-based product royalty revenue may also be earned upon the subsequent sale of the product at agreed upon contractual rates.

•Contract revenue-Contract revenue amounts are related to milestone payments under the Company’s license agreements with its partners including any associated financing component.

The Company implemented ASC 606 January 1, 2018. As such, the accounting treatment for 606 is already reflected in the consolidated financials for the year ended December 31, 2019.

The beginning and ending balances of the Company’s accounts receivables with customers from contracts during the periods presented is as follows (in thousands):


	Balance at January 1, 2018		Year ended December 31, 2018		Balance at December 31, 2018
Accounts receivable with customers	$	8,987	$	4,640	$	13,627