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Revenues, Recognition and Allowances (Tables)
 6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The table below summarizes the effect of the adoption of ASC 606 on the Company's Condensed Consolidated Balance Sheet as of June 30, 2018:

 
As Reported
 
Balance Without Adoption of New Revenue Standard
 
Effect of Change Higher/(Lower)
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
     Accounts receivable, net
$
16,232

 
$
18,144

 
$
(1,912
)
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
     Accrued expenses
$
9,269

 
$
11,181

 
$
(1,912
)

The table below summarizes the effect of the adoption of ASC 606 on the Company's Condensed Consolidated Statement of Operations as of June 30, 2018:

 
Three months ended June 30,
 
Six months ended June 30,
 
As Reported
 
Balance Without Adoption of New Revenue Standard
 
Effect of Change Increase/(Decrease)
 
As Reported
 
Balance Without Adoption of New Revenue Standard
 
Effect of Change Increase/(Decrease)
 
 
 
 
 
 
 
 
 
 
 
 
Revenue, net
$
16,751

 
$
17,228

 
$
(477
)
 
$
31,296

 
$
32,408

 
$
(1,112
)
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
11,728

 
12,205

 
(477
)
 
21,053

 
22,165

 
(1,112
)
 
 
 
 
 
 
 
 
 
 
 
 
Gross margin
30
%
 
29
%
 
(1
)%
 
33
%
 
32
%
 
(1
)%
Disaggregation of Revenues
Net Sales (in thousands) for the three and six months ended June 30, 2018 and 2017 were as follows (prior-period amounts are not adjusted under the modified-retrospective method of adoption):
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Company product sales
$
15,179

 
$
15,888

 
$
28,415

 
$
32,324

Contract manufacturing sales
1,450

 
2,407

 
2,748

 
5,824

Research and development services and other income
122

 
113

 
$
133

 
$
151

Revenue, net
$
16,751

 
$
18,408

 
$
31,296

 
$
38,299



Disaggregated information for the Company product sales revenue has been recognized in the accompanying unaudited interim Condensed Consolidated Statements of Operations is presented below according to contract type (in thousands):
 
 
Three months ended June 30,
 
Six months ended June 30,
Company Product Sales
 
2018
 
2017
 
2018
 
2017
Topical
 
$
8,369

 
$
9,885

 
$
16,277

 
$
18,833

Injectables
 
6,810

 
6,003

 
12,138

 
13,491

Total
 
$
15,179

 
$
15,888

 
$
28,415

 
$
32,324
Schedule of Accounts, Notes, Loans and Financing Receivable
The Company's adjustments for the deductions to gross product sales are as follows (in thousands):
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Gross product sales
$
48,142

 
$
66,744

 
$
84,690

 
$
121,044

 
 
 
 
 
 
 
 
Deduction to gross product sales:
 

 
 

 
 

 
 

Chargebacks and billbacks
21,449

 
44,090

 
38,364

 
74,105

Wholesaler fees for service
477

 
—

 
1,112

 
—

Sales discounts and other allowances
11,037

 
6,766

 
16,799

 
14,615

Total reduction to gross product sales
$
32,963

 
$
50,856

 
$
56,275

 
$
88,720

 
 
 
 
 
 
 
 
Company product sales, net
$
15,179

 
$
15,888

 
$
28,415

 
$
32,324