REVENUES

Product Revenues

The Company’s net revenues consisted of the following for the three and six months ended June 30, 2014 and 2013:



	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Products:
Acetadote	$	3,063,819	$	4,146,974	$	5,784,905	$	11,398,968
Omeclamox-Pak	1,344,869		—		2,484,290
Kristalose	3,559,313		2,041,043		6,935,370		4,158,293
Vaprisol	1,071,433		—		1,369,765
Caldolor	626,684		615,547		1,129,082		1,025,971
Other	84,050		277,524		140,000		755,988
Total net revenues	$	9,750,168	$	7,081,088	$	17,843,412	$	17,339,220

As discussed in Note 10, the Company acquired rights to two new products and both Omeclamox-Pak and Vaprisol contributed to Cumberland's net revenue during 2014. On October 28, 2013, Cumberland entered into an agreement with Pernix Therapeutics ("Pernix") to distribute and promote Omeclamox-Pak. Under the terms of the agreement, effective October 1, 2013, the Company began to record the revenue of this product and effective January 2014 Cumberland began distributing Omeclamox-Pak and promoting it to gastroenterologists across the United States. On February 28, 2014, Cumberland entered into an agreement with Astellas Pharma US, Inc. ("Astellas") to acquire certain product rights, intellectual property and related assets of Vaprisol. The Company began selling Vaprisol in March 2014 and launched promotional efforts for the brand in May 2014.

In November 2012, the Company entered into a settlement agreement with Paddock Laboratories, LLC ("Paddock") and Perrigo Company ("Perrigo") involving an Acetadote patent. As part of the agreement, Cumberland supplies Perrigo with an Authorized Generic version of the Company's Acetadote product. The Company's revenue generated by sales of it's Authorized Generic distributed by Perrigo is included in the Acetadote product revenue presented above. The Company's share of Authorized Generic revenue was $1.8 million and $2.1 million for the second quarter of 2014 and 2013, respectively, and $3.2 million and $5.0 million for the six months ended June 30, 2014 and 2013, respectively.

Other Revenues

In the second quarter of 2013, the Company entered into two agreements for the registration and commercialization of Caldolor outside the United States and amended its agreement with Harbin Gloria Pharmaceuticals Co., Ltd ("Gloria") to extend Gloria's territory. Earlier in 2013, the Company entered into three agreements with international partners for commercialization of certain of its products into additional international territories. As a result of these agreements, Cumberland recognized approximately $0.6 million of non-refundable up-front payments as other revenue in the consolidated statement of operations during the first half of 2013.

During the full year of 2013, the Company entered into a total of six new agreements and amended one agreement with international partners. The agreements entered into during 2013 provide that each of the partners are responsible for seeking regulatory approvals for the products, and following approvals, will handle ongoing distribution and sales in the respective international territories. The Company maintains responsibility for the intellectual property and product formulation. Under the licensing agreements, Cumberland is entitled to receive additional milestone payments upon the partners' achievement of defined regulatory approvals and sales milestones. The Company will recognize revenue for these substantive milestones using the milestone method. The 2013 agreements provide for up to $0.6 million in milestone payments related to regulatory approvals and up to $4.0 million in milestone payments related to total and annual product sales. As of June 30, 2014, Cumberland has not recognized any revenues related to milestones associated with the new agreements. The Company is also entitled to receive royalties on future sales of the products under the agreements.