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Product Revenue and Reserve and Allowances
6 Months Ended
Jun. 30, 2022
Revenue From Contract With Customer [Abstract]  
Product Revenue and Reserve and Allowances
5.
Product Revenue and Reserve and Allowances

The Company sells the Product principally to a limited number of customers consisting of telemedicine and online pharmacies, that in turn resell the Product to end-user patients and healthcare providers. Patients are required to have a prescription in order to purchase the Product in the United States.

Revenue for the three and six months ended June 30, 2022 and 2021 consisted of the following (in thousands):

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Roman Health Pharmacy LLC

$

6,916

 

 

$

2,037

 

 

$

13,415

 

 

$

4,931

 

GoGoMeds

 

2,057

 

 

 

140

 

 

 

3,072

 

 

 

230

 

CMS

 

 

 

 

 

 

 

 

 

 

119

 

Total

$

8,973

 

 

$

2,178

 

 

$

16,487

 

 

$

5,279

 

Roman Health Pharmacy LLC ("Ro")

On June 14, 2022, the Company entered into a Third Amended and Restated Supply and Distribution Agreement with Ro, pursuant to which the parties amended their previous agreement that granted Ro exclusive telehealth distributor rights to sell Plenity in the United States in the mail order/online pharmacy channel. Pursuant to the amendment, the Company received $15.0 million in cash from Ro as a pre-buy commitment to purchase units of Plenity, which was recorded to deferred income upon receipt in the accompanying condensed consolidated balance sheets.

At June 30, 2022 and December 31, 2021, the Company recorded a deferred income balance of $32.5 million and $31.0 million, respectively, in current liabilities in the accompanying condensed consolidated balance sheets with respect to Ro.

GoGoMeds ("GGM")

At June 30, 2022 and December 31, 2021, the Company recorded an accounts receivable balance of $1.3 million and $0.8 million, respectively, prior to reserves and allowances (see below), in the accompanying condensed consolidated balance sheets with respect to GGM.

CMS Bridging DMCC ("CMS")

At June 30, 2022 and December 31, 2021, the discounted time-based milestone had a balance of $4.2 million and $4.1 million, respectively, included in other assets in the accompanying condensed consolidated balance sheets. The royalties and other commercial milestones will only be recognized in the periods in which the applicable subsequent sales occur.

Reserves and Allowances

The following table summarizes the activity in the product revenue reserve and allowance during the six months ended June 30, 2022 and 2021 (in thousands):

 

 

2022

 

 

2021

 

Balance at December 31,

 

$

82

 

 

$

14

 

Provision related to product sales

 

 

1,193

 

 

 

326

 

Credits and payments made

 

 

(1,154

)

 

 

(324

)

Balance at June 30,

 

$

121

 

 

$

16

 

At June 30, 2022 and 2021, product related reserve and allowances comprised solely contractual adjustments owed to the Company’s telehealth and online pharmacy partners, which were netted to accounts receivable in the Company’s condensed consolidated balance sheets for the year. Through June 30, 2022, there had been no product related reserves or allowances owed to other parties, including the federal and state governments or their agencies.