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REVENUE RECOGNITION AND RELATED ALLOWANCES
 6 Months Ended
Jun. 30, 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 June 30,Six Months Ended June 30,
Products and Services (in thousands)2024202320242023
Sales of generic pharmaceutical products$73,964 $63,317 $144,181 $127,030 
Sales of established brand pharmaceutical products, royalties, and other pharmaceutical services14,883 28,926 45,159 55,669 
Sales of rare disease pharmaceutical products49,193 24,304 86,130 40,634 
Total net revenues$138,040 $116,547 $275,470 $223,333 
Three Months Ended June 30,Six Months Ended June 30,
Timing of Revenue Recognition (in thousands)2024202320242023
Performance obligations transferred at a point in time$138,040 $116,547 $275,470 $222,958 
Performance obligations transferred over time— — — 375 
Total$138,040 $116,547 $275,470 $223,333 
In the three and six months ended June 30, 2024 and 2023, the Company did not incur, and therefore did not defer, any material incremental costs to obtain or fulfill contracts. The Company recognized a decrease of $1.5 million to net revenue from performance obligations satisfied in prior periods during the six months ended June 30, 2024, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. The Company recognized an increase of $5.0 million to net revenue from performance obligations satisfied in prior periods during the six months ended June 30, 2023, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. Additionally, as of June 30, 2024, and December 31, 2023, there was no deferred revenue recorded on the condensed consolidated balance sheets.
As of June 30, 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 six months ended June 30, 2024 and 2023, respectively:
Accruals for Chargebacks, Returns, and Other Allowances
(in thousands)ChargebacksGovernment
Rebates		ReturnsAdministrative
Fees and Other
Rebates		Prompt
Payment
Discounts
Balance at December 31, 2022$148,562 $10,872 $33,399 $9,442 $6,488 
Accruals/Adjustments290,826 11,100 5,995 25,606 11,028 
Credits Taken Against Reserve(362,253)(10,001)(9,596)(25,177)(12,653)
Balance at June 30, 2023 (1)$77,135 $11,971 $29,798 $9,871 $4,863 
Balance at December 31, 2023$84,208 $12,168 $29,678 $11,412 $4,865 
Accruals/Adjustments267,779 13,324 21,895 29,970 11,422 
Credits Taken Against Reserve(262,541)(13,168)(17,676)(29,656)(11,243)
Balance at June 30, 2024 (1)$89,446 $12,324 $33,897 $11,726 $5,044 
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(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 and six months ended June 30, 2024, there were four customers that accounted for 10% or more of net revenues. During the three months ended June 30, 2023, there were four customers that accounted for 10% or more of net revenues. During the six months ended June 30, 2023, there were three customers that accounted for 10% or more of net revenues. As of June 30, 2024, accounts receivable from these customers totaled 79% of Accounts receivable, net.
The four customers represent the total percentage of net revenues as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Customer 124 %32 %29 %32 %
Customer 212 %14 %12 %14 %
Customer 313 %13 %11 %13 %
Customer 417 %10 %15 %9 %