Factoring agreement

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Factoring agreement

Factoring agreement

The Company sells rights to future revenues associated with invoices issued upon delivery of drug product to QTCs. The Company sells 100% of the invoice, and the upfront purchase price is 90% of the invoice amount. The remaining 10% less applicable fees is payable when the factor receives full payment from the customer. The upfront payments are treated as a short-term liability, presented as due to factor on the Company's consolidated balance sheets until the right to consideration from the customer is deemed unconditional. The remaining invoice amount payable to the Company at infusion is considered a beneficial interest in the factored invoice and represents the extent of our continued involvement in the sale of invoices.

Due to Factor

For the three and nine months ending September 30, 2024, the Company collected $15.2 million and $50.6 million, respectively, in cash receipts prior to an unconditional right to consideration and derecognized $10.6 million and $43.7 million, respectively, of due to factor amounts as a result of patient drug product infusions. Amounts presented as due to factor on the condensed consolidated balance sheets would be subject to payment based on the repurchase requirements that exist prior to the infusion date in the factoring agreement.

Due from Factor

For the three and nine months ending September 30, 2024, the company obtained $1.2 million and $4.9 million, respectively, of beneficiary interest in invoices and collected $0.7 million and $3.5 million, respectively, in cash receipts. Uncollected amounts presented as due from factor on the consolidated balance sheets are net of accrued fees of $0.1 million. The maximum loss exposure is $1.2 million at September 30, 2024.

The total loss from the sale of customer invoices is estimated on the patient infusion date of the drug product and was $0.5 million and $1.4 million, respectively, for the three and nine months ending September 30, 2024. In addition to the loss from the sale of invoices, the Company has incurred $0.3 million and $0.8 million, respectively, in servicing fees for the three and nine months ending September 30, 2024.