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REVENUE RECOGNITION AND RELATED ALLOWANCES | 6 Months Ended
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Jun. 30, 2025
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 the Company satisfies a performance obligation. Revenues are primarily derived from sales of generic, rare disease, and brands portfolio 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 is 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 customers generally pay outstanding balances within 100 days. All revenue recognized in the accompanying unaudited 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) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Rare Disease and Brands |  |  |  |  |  |  |  |
Cortrophin Gel |  | $ | 81,647 |  |  | $ | 49,193 |  |  | $ | 134,497 |  |  | $ | 86,130 |
ILUVIEN and YUTIQ |  | 22,316 |  |  | — |  |  | 38,425 |  |  | — |
Rare Disease total net revenues |  | $ | 103,963 |  |  | $ | 49,193 |  |  | $ | 172,922 |  |  | $ | 86,130 |
Brands |  | 13,195 |  |  | 10,027 |  |  | 38,318 |  |  | 35,706 |
Rare Disease and Brands total net revenues |  | $ | 117,158 |  |  | $ | 59,220 |  |  | $ | 211,240 |  |  | $ | 121,836 |
Generics and Other |  |  |  |  |  |  |  |
Generic pharmaceutical products |  | $ | 90,297 |  |  | $ | 73,964 |  |  | $ | 188,975 |  |  | $ | 144,181 |
Royalties and other pharmaceutical services |  | 3,916 |  |  | 4,856 |  |  | 8,278 |  |  | 9,453 |
Generics and Other total net revenues |  | 94,213 |  |  | 78,820 |  |  | 197,253 |  |  | 153,634 |
Total net revenues |  | $ | 211,371 |  |  | $ | 138,040 |  |  | $ | 408,493 |  |  | $ | 275,470 |
In the three and six months ended June 30, 2025 and 2024, all of the Company's revenue was recognized at a point in time, when the performance obligation in the contracts with customers have been satisfied, generally when control of the products is transferred to the customer. The Company did not recognize any revenue associated with performance obligations satisfied over time. In the three and six months ended June 30, 2025 and 2024, the Company did not incur, and therefore did not defer, any material incremental costs to obtain or fulfill contracts. The Company re cognized an additional $2.0 million to net revenue from performance obligations satisfied in prior periods during the six months ended June 30, 2025, consisting primarily of revised estimates for variable consideration, including chargebacks, rebates, returns, and other allowances, related to prior period sales. The Company recognized a reduction of $1.5 million t o 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. As of June 30, 2025, the aggregate amount of the transaction price allocated to the remaining performance obligations for all open contract manufacturing customer contracts was $1.7 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 unaudited condensed consolidated balance sheets for accruals and allowances for the six months ended June 30, 2025 and 2024, 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, 2023 | $ | 84,208 |  |  | $ | 12,168 |  |  | $ | 29,678 |  |  | $ | 11,412 |  |  | $ | 4,865 |
Accruals/Adjustments | 267,779 |  |  | 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 |
Balance at December 31, 2024 | $ | 105,630 |  |  | $ | 18,714 |  |  | $ | 39,274 |  |  | $ | 19,588 |  |  | $ | 6,258 |
Accruals/Adjustments | 330,581 |  |  | 32,910 |  |  | 22,737 |  |  | 40,730 |  |  | 17,134 |
Credits Taken Against Reserve | (337,311) |  |  | (18,758) |  |  | (13,328) |  |  | (38,902) |  |  | (17,090) |
Balance at June 30, 2025 (1) | $ | 98,900 |  |  | $ | 32,866 |  |  | $ | 48,683 |  |  | $ | 21,416 |  |  | $ | 6,302 |
______________________________________________ (1)Chargebacks are included as an offset to accounts receivable, net of chargebacks and other allowances in the unaudited condensed consolidated balance sheets. Administrative Fees and Other Rebates and Prompt Payment Discounts are included as a reduction to accounts receivable, net of chargebacks and other allowances or accrued expenses and other in the unaudited condensed consolidated balance sheets. Returns are included in returned goods reserve in the unaudited condensed consolidated balance sheets. Government Rebates are included in accrued government rebates in the unaudited condensed consolidated balance sheets. Credit Concentration ANI’s customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, pharmaceutical companies, hospitals, and healthcare providers. During the three and six months ended June 30, 2025, there were three and four customers, respectively, that accounted for 10% or more of net revenues. During the three and six months ended June 30, 2024, there were four customers that accounted for 10% or more of net revenues. As of June 30, 2025, accounts receivable from four customers totaled 69% 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,
| 2025 |  | 2024 |  | 2025 |  | 2024
Customer 1 | 18 | % |  | 24 | % |  | 21 | % |  | 29 | %
Customer 2 | 9 | % |  | 12 | % |  | 10 | % |  | 12 | %
Customer 3 | 11 | % |  | 13 | % |  | 12 | % |  | 11 | %
Customer 4 | 20 | % |  | 17 | % |  | 18 | % |  | 15 | %

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- 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 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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