Revenues and Trade Receivables, Net

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenues and Trade Receivables, Net

Revenues and Trade Receivables, Net

The Company’s revenue was comprised of the following:

	Year Ended December 31,
	2023		2022
Manufacture and supply revenue	$	43,805	$	36,378
License and royalty revenue	5,376		2,351
Co-development and research fees	1,402		1,293
Proprietary product sales, net	—		7,658
Revenues	$	50,583	$	47,680

Disaggregation of Revenue

The following table provides disaggregated net revenue by geographic area:

	Year Ended December 31,
	2023		2022
United States	$	37,104	$	40,792
Ex-United States	13,479		6,888
Revenues	$	50,583	$	47,680

Trade and other receivable, net consist of the following:

	December 31,
	2023		2022
Accounts receivable	$	5,570	$	3,274
Contract and other receivables	2,915		2,139
Less: allowance for bad debt	(14)		(40)
Less: sales-related allowances	—		(669)
Trade and other receivables, net	$	8,471	$	4,704

Contract and other receivables totaled $2,915 and $2,139 as of December 31, 2023 and 2022, respectively, consisting primarily of contract assets and other receivables. Contract assets consist of products and services provided under specific contracts to customers for which earnings processes have been met. Sales-related allowances as of December 31, 2022 were estimated in relation to revenues recognized for sales of Sympazan prior to the licensing agreement the Company entered into with Assertio in October 2022. See details in Note 6, Material Agreements.

The following table presents the changes in the allowance for doubtful accounts:

	December 31,
	2023		2022
Allowance for doubtful accounts at beginning of the period	$	40	$	40
Allowance expense (reduction)	(26)		—
Write-downs charged against the allowance	—		—
Allowance for doubtful accounts at end of the period	$	14	$	40

The allowance for doubtful accounts was $14 and $40 for each of the years ending December 31, 2023 and 2022. There was a reduction of $26 to the allowance for doubtful accounts for the year ended December 31, 2023. There were no additions to or write-downs for the year ended December 31, 2022.

The following table presents the changes in sales-related allowances:

	December 31,
	2023		2022
Beginning Balance	$	669	$	605
Provision related to sales in 2022	—		1,365
Credits and payments	(87)		(1,301)
Reclassifications	$	(582)	$	—
Ending Balance	$	—	$	669

Total reductions of gross product sales from sales-related allowances and accruals were $0 the year ended December 31, 2023 due to the outlicensing of Sympazan. Accruals for returns allowances and prompt pay discounts are reflected as a direct reduction of trade receivables and accruals for wholesaler service fees, co-pay support redemptions and rebates as current liabilities. The accrued balances relative to these provisions included in Trade and other receivables, net and Accrued expenses were $0 and $645, respectively, as of December 31, 2023, and $669 and $1,012, respectively, as of December 31, 2022. See Note 13, Accrued Expenses.

Concentration of Major Customers

Customers are considered major customers when net revenue exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. For the year ended December 31, 2023, Indivor represented approximately 80% of total revenue. As of December 31, 2023, Indivor and Zevra Therapeutics, Inc. represented 65% and 13%, respectively, of total trade and other receivables. For the year ended December 31, 2022, Indivor represented approximately 76% of total revenue. As of December 31, 2022, Indivior represented 80% of total trade and other receivables.