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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue Recognition [Abstract]  
Revenue Recognition

8. Revenue Recognition

Disaggregation of Revenues

The following table disaggregates our product revenue, net by product and geographic region and disaggregates our other revenues by geographic region (in thousands):

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

June 30, 2023

 

 

June 30, 2022

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

Product revenue, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HEPLISAV-B

 

$

56,440

 

 

$

-

 

 

$

56,440

 

 

$

31,739

 

 

$

941

 

 

$

32,680

 

CpG 1018 adjuvant

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

222,640

 

 

 

222,640

 

Total product revenue, net

 

$

56,440

 

 

$

-

 

 

$

56,440

 

 

$

31,739

 

 

$

223,581

 

 

$

255,320

 

Other revenue

 

 

3,809

 

 

 

-

 

 

 

3,809

 

 

 

1,083

 

 

 

61

 

 

 

1,144

 

Total revenues

 

$

60,249

 

 

$

-

 

 

$

60,249

 

 

$

32,822

 

 

$

223,642

 

 

$

256,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

June 30, 2023

 

 

June 30, 2022

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

Product revenue, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HEPLISAV-B

 

$

99,891

 

 

$

-

 

 

$

99,891

 

 

$

52,549

 

 

$

941

 

 

$

53,490

 

CpG 1018 adjuvant

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

314,157

 

 

 

314,157

 

Total product revenue, net

 

$

99,891

 

 

$

-

 

 

$

99,891

 

 

$

52,549

 

 

$

315,098

 

 

$

367,647

 

Other revenue

 

 

7,283

 

 

 

-

 

 

 

7,283

 

 

 

2,689

 

 

 

120

 

 

 

2,809

 

Total revenues

 

$

107,174

 

 

$

-

 

 

$

107,174

 

 

$

55,238

 

 

$

315,218

 

 

$

370,456

 

 

Revenues from Major Customers and Collaboration Partners

All of our HEPLISAV-B sales in the U.S. are to certain wholesalers and specialty distributors whose principal customers include independent hospitals and clinics, integrated delivery networks, public health clinics and prisons, the Department of Defense, the Department of Veterans Affairs and retail pharmacies. All of our HEPLISAV-B sales in Germany are to one distributor.

The following table summarizes HEPLISAV-B product revenue from each of our three largest customers (as a percentage of total HEPLISAV-B net product revenue):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Largest customer

 

 

24

%

 

 

18

%

 

 

24

%

 

 

21

%

Second largest customer

 

 

21

%

 

 

18

%

 

 

23

%

 

 

18

%

Third largest customer

 

 

18

%

 

 

18

%

 

 

17

%

 

 

17

%

The following table summarizes CpG 1018 adjuvant product revenue from each of our three largest collaboration partners (as a percentage of total CpG 1018 adjuvant net product revenue):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Largest collaboration partner

 

 

0

%

 

 

41

%

 

 

0

%

 

 

38

%

Second largest collaboration partner

 

 

0

%

 

 

31

%

 

 

0

%

 

 

36

%

Third largest collaboration partner

 

 

0

%

 

 

23

%

 

 

0

%

 

 

22

%

Contract Balances

The following table summarizes balances and activities in HEPLISAV-B product revenue allowance and reserve categories for the six months ended June 30, 2023 (in thousands):

 

 

 

Balance at
Beginning
of Period

 

 

Provisions
related to
current
period sales

 

 

Credit or
payments
made during
the period

 

 

Adjustments related to prior periods

 

 

Balance
at End of
Period

 

Six months ended June 30, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable reserves (1)

 

$

8,179

 

 

$

26,738

 

 

$

(24,944

)

 

$

(229

)

 

$

9,744

 

Revenue reserve accruals (2)

 

$

10,552

 

 

$

21,319

 

 

$

(16,059

)

 

$

(50

)

 

$

15,762

 

 

(1)
Reserves are for chargebacks, discounts and other fees.
(2)
Accruals are for returns, rebates and other fees.

When we transfer control of CpG 1018 adjuvant that is reserved under the CEPI Agreement to Clover and perform services under our agreement with the DoD, we recognize revenue and a corresponding contract asset as our right to consideration is conditioned on something other than the passage of time. See Note 6 for further discussion. The following table summarizes balances and activities in our contract asset account (in thousands):

 

 

 

Balance at
Beginning
of Period

 

 

Additions

 

 

Subtractions

 

 

Reclassification (1)

 

 

Balance
at End of
Period

 

Six months ended June 30, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract asset, included in other current assets (2)

 

$

71,965

 

 

$

7,199

 

 

$

(6,255

)

 

$

(71,307

)

 

$

1,602

 

Contract asset, included in other assets (long term)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

71,307

 

 

$

71,307

 

 

 

(1)
The Clover contract asset was reclassified to long term assets to reflect the timing of expected long term demand for CpG 1018 adjuvant for Clover Product. See Note 6 for further discussion.
(2)
The $1.6 million of contract asset is derived from our agreement with the DoD.