XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

REVENUE RECOGNITION AND RELATED ALLOWANCES | 3 Months Ended
--- | ---
Mar. 31, 2024
Revenue from Contract with Customer [Abstract] |
REVENUE RECOGNITION AND RELATED ALLOWANCES | REVENUE RECOGNITION AND RELATED ALLOWANCES Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized using the following steps: •Identification of the contract, or contracts, with a customer; •Identification of the performance obligations in the contract; •Determination of the transaction price, including the identification and estimation of variable consideration; •Allocation of the transaction price to the performance obligations in the contract; and •Recognition of revenue when we satisfy a performance obligation. Revenues are primarily derived from sales of generic, rare disease, and established brand pharmaceutical products, royalties, and other pharmaceutical services. Revenue is recognized when obligations under the terms of contracts with customers are satisfied, which generally occurs when control of the products sold are transferred to the customer. Variable consideration is estimated after the consideration of applicable information that is reasonably available. The Company generally does not have incremental costs to obtain contracts that would otherwise not have been incurred. The Company does not adjust revenue for the promised amount of consideration for the effects of a significant financing component because our customers generally pay us within 100 days. All revenue recognized in the accompanying unaudited interim condensed consolidated statements of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue:
|  | Three Months Ended
Products and Services |  | March 31, 2024 |  | March 31, 2023
(in thousands) |  |
Sales of generic pharmaceutical products |  | $ | 70,217 |  |  | $ | 63,713 |
Sales of established brand pharmaceutical products, royalties, and other pharmaceutical services |  | 30,276 |  |  | 26,743 |
Sales of rare disease pharmaceutical products |  | 36,937 |  |  | 16,330 |
Total net revenues |  | $ | 137,430 |  |  | $ | 106,786 |
|  | Three Months Ended
Timing of Revenue Recognition |  | March 31, 2024 |  | March 31, 2023
(in thousands) |  |
Performance obligations transferred at a point in time |  | $ | 137,430 |  |  | $ | 106,411 |
Performance obligations transferred over time |  | — |  |  | 375 |
Total |  | $ | 137,430 |  |  | $ | 106,786 |
In the three months ended March 31, 2024 and 2023, the Company did not incur, and therefore did not defer, any material incremental costs to obtain or fulfill contracts. The Company re cognized a decrease of $0.1 million to net revenue from performance obligations satisfied in prior periods during the three months ended March 31, 2024, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. We recognized an increase of $5.1 million t o net revenue from performance obligations satisfied in prior periods during the three months ended March 31, 2023, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. Additionally, as of March 31, 2024, and December 31, 2023, there was no deferred revenue recorded on the condensed consolidated balance sheet. As of March 31, 2024, the aggregate amount of the transaction price allocated to the remaining performance obligations for all open contract manufacturing customer contracts was $3.0 million, which consists of firm orders for contract manufactured products. The Company recognizes revenue for these performance obligations as they are satisfied, which is anticipated within six months. Variable consideration Sales of pharmaceutical products are subject to variable consideration due to chargebacks, government rebates, returns, administrative and other rebates, and cash discounts. Estimates for these elements of variable consideration require significant judgment. The following table summarizes activity in the condensed consolidated balance sheets for accruals and allowances for the three months ended March 31, 2024 and 2023, respectively:
| Accruals for Chargebacks, Returns, and Other Allowances
(in thousands) | Chargebacks |  | Government Rebates |  | Returns |  | Administrative Fees and Other Rebates |  | Prompt Payment Discounts
Balance at December 31, 2022 | $ | 148,562 |  |  | $ | 10,872 |  |  | $ | 33,399 |  |  | $ | 9,442 |  |  | $ | 6,488 |
Accruals/Adjustments | 146,113 |  |  | 4,461 |  |  | 4,640 |  |  | 12,026 |  |  | 5,483 |
Credits Taken Against Reserve | (193,859) |  |  | (6,726) |  |  | (3,931) |  |  | (12,018) |  |  | (6,538) |
Balance at March 31, 2023 (1) | $ | 100,816 |  |  | $ | 8,607 |  |  | $ | 34,108 |  |  | $ | 9,450 |  |  | $ | 5,433 |
Balance at December 31, 2023 | $ | 84,208 |  |  | $ | 12,168 |  |  | $ | 29,678 |  |  | $ | 11,412 |  |  | $ | 4,865 |
Accruals/Adjustments | 131,097 |  |  | 5,952 |  |  | 12,521 |  |  | 14,811 |  |  | 5,635 |
Credits Taken Against Reserve | (137,779) |  |  | (8,611) |  |  | (9,346) |  |  | (13,085) |  |  | (5,641) |
Balance at March 31, 2024 (1) | $ | 77,526 |  |  | $ | 9,509 |  |  | $ | 32,853 |  |  | $ | 13,138 |  |  | $ | 4,859 |
______________________________________________ (1)Chargebacks and Prompt Payment Discounts are included as an offset to accounts receivable in the unaudited interim condensed consolidated balance sheets. Administrative Fees and Other Rebates are included as an offset to accounts receivable or as accrued expenses and other in the unaudited interim condensed consolidated balance sheets. Returns are included in returned goods reserve in the unaudited interim condensed consolidated balance sheets. Government Rebates are included in accrued government rebates in the unaudited interim condensed consolidated balance sheets. Credit Concentration ANI's customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, and pharmaceutical companies. During the three months ended March 31, 2024, there were four customers that accounted for 10% or more of net revenues. During the three months ended March 31, 2023, there were three customers that accounted for 10% or more of net revenues. As of March 31, 2024, accounts receivable from these customers tot aled 81% of Accounts receivable, net. The four customers represent the total percentage of net revenues as follows:
| Three Months Ended
| March 31, 2024 |  | March 31, 2023
Customer 1 | 34 | % |  | 33 | %
Customer 2 | 13 | % |  | 15 | %
Customer 3 | 10 | % |  | 14 | %
Customer 4 | 13 | % |  | 7 | %

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration