Revenue and Accounts Receivable

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Accounts Receivable

Note 5. – Revenue and Accounts Receivable

Disaggregation of Revenue

The Company disaggregates revenue from contracts with its patients by payors. The Company determines that disaggregating revenue into these categories achieves the disclosure objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. A reconciliation of disaggregated revenue is shown below.

Revenues by payor were as follows for the three months ended September 30, 2024 and 2023:

	Three Months Ended
	September 30,
	2024		2023
Medicare	$	3,719	$	3,830
Medicaid		1,726		1,650
Retail and Institutional Pharmacy		1,796		1,704
Private Insurance		467		1,170
Self-pay		197		180
Other		18		21
Total Net Revenues	$	7,923	$	8,555

The revenues for the three months ended September 30, 2023 includes $321 of prior period sales tax refunds.

The Company’s service specific revenue recognition policies are as follows:

Pharmacy

The Company’s revenue is derived primarily from providing pharmacy goods and services to patients and is recognized on the date goods and services are provided at amounts billable to individual patients, adjusted for estimates for variable consideration. Revenue is recognized when control of the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Each prescription claim represents a separate performance obligation of the Company, separate and distinct from other prescription claims under customer arrangements. Significant portions of the revenue from sales of pharmaceutical and medical products are reimbursed by the federal Medicare Part D program and, to a lesser extent, state Medicaid programs. The Company monitors its revenues and receivables from these reimbursement sources, as well as other third-party insurance payors, and reduces revenue at the revenue recognition date, to properly account for the variable consideration due to anticipated differences between billed and reimbursed amounts. Accordingly, the total net revenues and receivables reported in the Company’s condensed consolidated financial statements are recorded at the amount expected to be ultimately received from these payors.

Receivables and Provision for Credit Losses

The Company adopted Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 326, Financial Statements – Credit Losses (“Topic 326”) with an adoption date of July 1, 2023. This standard requires a financial asset (or a group of financial assets) measured at amortized cost basis, to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial assets. The Company evaluates the valuation of accounts receivable concessions allowances based upon its historical collection trends, as well as its understanding of the nature and collectability of accounts based on their age and other factors. The model is based on the credit losses expected to arise over the life of the asset based on the Company’s expectations as of the balance sheet date through analyzing historical customer data as well as taking into consideration current and estimated future economic trends. The Company adopted Topic 326 and determined it did not have a material financial impact.

The roll forward of the allowance for credit losses for the three months ended September 30, 2024 and 2023, was as follows:

	Three Months Ended			Three Months Ended
	September 30,			September 30,
	2024			2023
June 30, balance	$	240		$	532
Concession allowance expense		61			79
Write-offs		(45	)		(203	)
September 30, balance	$	256		$	408