Revenues from Contracts with Customers

6 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

3. Revenues from Contracts with Customers

Net product sales in the BioPharma Rx Segment (which includes the ADHD Portfolio and the Pediatric Portfolio) consist of sales of prescription pharmaceutical products, principally to a limited number of wholesale distributors and pharmacies in the United States. Rx product revenue is recognized at the point in time that control of the product transfers to the customer which typically aligns with shipping terms (i.e., upon delivery), which is generally “free-on-board” destination when shipped domestically within the United States and “free-on-board” shipping point when shipped internationally consistent with the contractual terms.

The Company generates Consumer Health Segment revenue (consisting of the Consumer Health Portfolio) from sales of various consumer health products through e-commerce platforms and direct-to-consumer marketing channels utilizing its proprietary Beyond Human marketing and sales platform. Revenue is generally recognized “free-on-board” shipping point, as those are the agreed-upon contractual terms and align with the transfer of control. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by us from a customer are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales.

Savings offers, rebates and wholesaler chargebacks reflect the terms of underlying agreements, which may vary. Accordingly, actual amounts will depend on the mix of sales by product and contracting entity. Future returns may not follow historical trends. The Company’s periodic adjustments of its estimates are subject to timed delays between the initial product sale and ultimate reporting and settlement of deductions. The Company continually monitors these provisions and do not believe variances between actual and estimated amounts have been material.

Contract Balances. Contract liabilities primarily relate to advances or deposits received from the Company’s customers before revenue is recognized. As of December 31, 2022 and June 30, 2022, contract liabilities of $0.1 million and $0.4 million, respectively were included in accrued liabilities in the consolidated balance sheets.

Revenues by Segment. Net revenue disaggregated by segment for the three and six months ended December 31, 2022 and 2021 were as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
	(In thousands)
Rx Segment	$	18,029	$	14,643	$	36,681	$	28,526
Consumer Health Segment		8,250		8,482		17,253		16,496
Consolidated revenue	$	26,279	$	23,125	$	53,934	$	45,022

Revenues by Geographic location. The Company’s revenues are predominately within the United States, with minimal sales in Canada.