Accounts Receivable

12 Months Ended

Dec. 31, 2024

5. Accounts Receivable

Accounts receivable, net consists of the following (in thousands):


	December 31, 2024			December 31, 2023
Accounts receivable – commercial
Accounts receivable, gross	$	22,879		$	20,199
Wholesaler distribution fees and prompt pay discounts		(4,186	)		(2,469	)
Reserve for returns		(8,858	)		(6,215	)
Allowance for credit losses		—			(157	)
Total accounts receivable – commercial, net		9,835			11,358
Accounts receivable – collaborations and services(1)		1,969			3,543
Total accounts receivable, net	$	11,804		$	14,901

___________________________

(1)

Includes the $1.1 million regulatory milestone payment receivable from Cipla. See Note 11 – Collaborations, Licensing and Other Arrangements – Cipla License and Distribution Agreement.

As of December 31, 2024 , there was no allowance for credit losses and doubtful accounts for commercial accounts receivable. As of December 31, 2023, the allowance for credit losses and doubtful accounts for commercial accounts receivable of $0.2 million was related to accounts receivable for Zealand Pharma US, Inc. As of December 31, 2024, the Company had three wholesale distributors representing approximately 73% of gross sales and 88% of commercial accounts receivable.

As of December 31, 2024 and 2023, there was no allowance for credit losses for accounts receivable for collaborations and services. The Company's collaboration partners, UT and Cipla, comprised 50% each of the collaboration and services net accounts receivable as of December 31, 2024. The December 31, 2023 balance was comprised 100% of UT. Approximately 98% of gross revenue from collaborations and services for the years ended December 31, 2024 and 2023 was attributable to UT.

The Company recognizes revenue net of gross-to-net adjustments. The activities and ending reserve balance consists of the following (in thousands):


	December 31, 2024			December 31, 2023
Prompt Pay Discount Reserve, Allowance for Wholesale Distribution Fees and Reserves for Returns:
Beginning balance	$	8,841		$	6,644
Provisions		20,336			18,977
Deductions		(16,133	)		(16,780	)
Ending balance	$	13,044		$	8,841