Revenues from Contracts with Customers

9 Months Ended

Mar. 31, 2023

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. 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 the Company from customers 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 does not believe variances between actual and estimated amounts have or will be material.

Revenues by Segment. Net revenue disaggregated by segment for the three and nine months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2023		2022		2023		2022
	(In thousands)
Rx Segment	$	13,805	$	13,862	$	50,486	$	42,388
Consumer Health Segment		8,928		10,337		26,181		26,833
Consolidated revenue	$	22,733	$	24,199	$	76,667	$	69,221

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