Composition of Other Balance Sheet Items

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Other Balance Sheet Items

Composition of Other Balance Sheet ItemsThe following details the composition of other balance sheet items (dollars in thousands for amounts in tables):

Accounts Receivable

As of December 31, 2022, and December 31, 2021, the Company has reduced gross accounts receivable by approximately $13.0 million and $13.5 million, respectively. Prompt pay discount and contractual service fees, which were originally recorded as reduction to revenues, represents estimated amounts not expected to be paid by our customers. The Company's customers are primarily pharmaceutical wholesalers and distributors and specialty pharmacies.

Inventories, net

Inventories consist of the following (dollars in thousands):

	December 31, 2022		December 31, 2021
Raw materials	$	24,820	$	7,325
Work in process	31,710		45,711
Finished goods	35,011		32,923
Total	$	91,541	$	85,959

Inventories as of December 31, 2022 include acquired inventory from the Adamas Acquisition. Refer to Note 3, Acquisition, for further discussion of the acquisition.

Property and Equipment, net

Property and equipment consists of the following (dollars in thousands):

	December 31, 2022		December 31, 2021
Lab equipment and furniture	$	12,127	$	12,287
Leasehold improvements	14,023		14,369
Software	883		4,776
Computer equipment	983		1,944
Construction-in-progress	206		33
	28,222		33,409
Less accumulated depreciation and amortization	(13,049)		(16,454)
Total	$	15,173	$	16,955

Depreciation and amortization expense on property and equipment was approximately $3.0 million, $2.6 million, and $4.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company retired certain fully depreciated property and equipment in the year ended December 31, 2022.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following (dollars in thousands):

	December 31, 2022		December 31, 2021
Accounts payable	$	10,543	$	9,331
Accrued compensation	16,963		28,068
Accrued professional & marketing fees	16,783		26,728
Accrued product costs	15,216		18,460
Accrued royalties (1)	12,022		13,821
Accrued clinical trial costs (2)	7,490		9,125
Operating lease liabilities, current portion (3)	6,791		6,477
Other accrued expenses	10,534		5,673
Total	$	96,342	$	117,683

(1) Refer to Note 16, Commitments and Contingencies.

(2) Includes preclinical and all clinical trial-related costs.

(3) Refer to Note 13, Leases.

Accrued Product Returns and Rebates

Accrued product returns and rebates consist of the following (dollars in thousands):

	December 31, 2022		December 31, 2021
Accrued product rebates	$	106,657	$	97,597
Accrued product returns	45,008		35,127
Total	$	151,665	$	132,724