Product Revenue Reserves and Allowances

9 Months Ended

Sep. 30, 2019

Disclosure Of Product Revenue Reserves And Allowances [Abstract]

5.	Product Revenue Reserves and Allowances

The Company’s product revenues have been primarily from sales of YUTIQ and DEXYCU in the U.S., which it began shipping to its 3PL in February 2019 and March 2019, respectively.

Net product revenues by product for the three and nine months ended September 30, 2019 were as follows (in thousands):

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
YUTIQ	$	55	$	7,303
DEXYCU		954		1,638
Total product sales, net	$	1,009	$	8,941

During the three and nine months ended September 30, 2019, revenues from the Company’s single 3PL accounted for 39.0% and 76.0% of total revenues, respectively. Accounts receivable from the 3PL accounted for 93.0% of total accounts receivable at September 30, 2019. The Company recorded no allowance for doubtful accounts as of September 30, 2019.

The following table summarizes activity in each of the product revenue allowance and reserve categories for the nine months ended September 30, 2019 (in thousands):

	Chargebacks, Discounts			Government and Other
	and Fees			Rebates			Returns			Total
Beginning balance at January 1, 2019	$	—		$	—		$	—		$	—
Provision related to sales in the current year		833			161			367			1,361
Adjustments related to prior period sales		—			—			—			—
Deductions applied and payments made		(178	)		(105	)		(171	)		(454	)
Ending balance at September 30, 2019	$	655		$	56		$	196		$	907

Returns are recorded as a reduction of accounts receivable on the condensed consolidated balance sheets. Chargebacks, discounts and fees and rebates are recorded as a component of accrued expenses on the condensed consolidated balance sheets (See Note 7).