Related Party Transactions

6 Months Ended

Dec. 31, 2018

Related Party Transactions

Related Party Transactions

Note 20.  Related Party Transactions

The Company had sales of $1.0 million and $1.2 million during the three months ended December 31, 2018 and 2017, respectively, to a generic distributor, Auburn Pharmaceutical Company (“Auburn”), which is a member of the Premier Buying Group. Sales to Auburn for the six months ended December 31, 2018 and 2017 were $1.5 million and $2.0 million, respectively.  Jeffrey Farber, a current board member, is the owner of Auburn.  Accounts receivable includes amounts due from Auburn of $849 thousand and $585 thousand at December 31, 2018 and June 30, 2018, respectively. 

The Company also had sales of $920 thousand and $516 thousand during the three months ended December 31, 2018 and 2017, respectively, to a generic distributor, KeySource, which is a member of the OptiSource Buying Group.  Sales to KeySource for the six months ended December 31, 2018 and 2017 were $1.5 million and $983 thousand, respectively.   Albert Paonessa, a current board member, was appointed the CEO of KeySource in May 2017.  Accounts receivable includes amounts due from KeySource of $605 thousand and $514 thousand as of December 31, 2018 and June 30, 2018, respectively.

The Company incurred expenses totaling $188 thousand and $369 thousand during the three and six months ended December 31, 2018, respectively, for online medical benefit services provided by a subsidiary of a variable interest entity.  See Note 13 “Commitments” for more information.  Accounts payable includes amounts due to the variable interest entity of $58 thousand as of June 30, 2018.  There were no amounts due to the variable interest entity as of December 31, 2018.