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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
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

 

 

March 31, 2024

 

 

March 31, 2023

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

 

U.S.

 

 

Non U.S.

 

 

Total

 

Product revenue, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HEPLISAV-B

 

$

46,699

 

 

$

1,146

 

 

$

47,845

 

 

$

43,451

 

 

$

-

 

 

$

43,451

 

Total product revenue, net

 

$

46,699

 

 

$

1,146

 

 

$

47,845

 

 

$

43,451

 

 

$

-

 

 

$

43,451

 

Other revenue

 

 

2,802

 

 

 

143

 

 

 

2,945

 

 

 

3,474

 

 

 

-

 

 

 

3,474

 

Total revenues

 

$

49,501

 

 

$

1,289

 

 

$

50,790

 

 

$

46,925

 

 

$

-

 

 

$

46,925

 

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

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

Largest customer

 

 

27

%

 

 

27

%

 

Second largest customer

 

 

19

%

 

 

22

%

 

Third largest customer

 

 

18

%

 

 

17

%

 

Contract Balances

The following table summarizes balances and activities in HEPLISAV-B product revenue allowance and reserve categories for the three months ended March 31, 2024 (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

 

Three months ended March 31, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable reserves (1)

 

$

7,011

 

 

$

13,375

 

 

$

(13,622

)

 

$

-

 

 

$

6,764

 

Revenue reserve accruals (2)

 

$

21,004

 

 

$

10,968

 

 

$

(9,698

)

 

$

-

 

 

$

22,274

 

 

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

When we perform services under our agreement with the DoD, we recognize product 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

 

 

Balance
at End of
Period

 

 

Three months ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract asset, included in other current assets (1)

 

$

1,389

 

 

$

2,802

 

 

$

(2,017

)

 

$

2,174

 

 

Contract asset, included in other assets (long term) (2)

 

$

71,307

 

 

$

-

 

 

$

-

 

 

$

71,307

 

 

 

(1) The $2.2 million of contract asset is derived from our agreement with the DoD.

(2) The Clover contract asset was included in 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.