Revenues

6 Months Ended

Jun. 30, 2019

Product Revenues

The Company accounts for revenues from contracts with customers under ASC 606, which became effective January 1, 2018. As part of the adoption of ASC 606, the Company applied the new standard on a modified retrospective basis analyzing open contracts as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606. As discussed in Note 10, during November 2018 Cumberland entered into an agreement to acquire the global responsibility for Vibativ. The product began contributing to Cumberland's net revenue during 2018.

The Company’s net revenues consisted of the following for the three and six months ended June 30, 2019 and 2018:


	Three months ended June 30,						Six months ended June 30,
	2019		2018		2019		2018
Products:
Acetadote	$	983,473	$	841,431	$	1,832,976	$	2,115,741
Omeclamox-Pak	478,604		89,952		678,141		231,344
Kristalose	3,476,807		3,203,743		6,785,050		6,473,097
Vaprisol	212,526		1,685,900		499,202		1,779,790
Caldolor	1,054,718		1,101,023		2,372,599		2,140,771
Ethyol	2,008,247		2,809,691		5,099,429		5,065,764
Totect	154,910		269,190		235,805		681,964
Vibativ	2,599,280		—		4,659,471		—
Other	612,035		162,794		1,320,674		262,858
Total net revenues	$	11,580,600	$	10,163,724	$	23,483,347	$	18,751,329

Other Revenues

During the three months ended June 30, 2019, Cumberland executed a License and Distribution agreement with HongKong WinHealth Pharma Group Co. Limited (“WinHealth”) for our Caldolor and Acetadotebrands in China and Hong Kong. In conjunction with these new arrangements, the Company terminated a previous License and Distribution agreement with Gloria Pharmaceuticals Co ("Gloria Pharmaceuticals") for the two brands. In addition, we also signed a new License and Distribution agreement with DB Pharm Korea Co., Ltd. (“DB Pharm”) for Vibativ in South Korea. As a result of these agreements, Cumberland recognized approximately $0.3 million of non-refundable up-front payments as other revenue in the consolidated statement of operations during the three months ended June 30, 2019. Cumberland's performance obligation was satisfied upon entering into the agreements to license each of the products intellectual property. CET grant revenue for the three and six months ended June 30, 2019 included in other revenue was $0.2 million and $0.8 million, respectively.

The Company has agreements with international partners for commercialization of the Company's products. The international agreements provide that each of the partners are responsible for seeking regulatory approvals for the products, and following approvals, each partner will handle ongoing distribution and sales in the respective international territories. The Company maintains responsibility for the intellectual property and product formulations. Under the international agreements, the Company is typically entitled to receive a non-refundable, up-front payment at the time each agreement is entered into as a result of providing the distinct intellectual property rights for the respective international territory. These agreements also provide for additional payments upon the partners' achievement of defined regulatory approvals, sales milestones or both. The Company may also be entitled to receive royalties on future sales of the products under the agreements and a transfer price on supplies. The contractual payments associated with the partners achievement of regulatory approvals, sales milestones and royalties on future sales are recognized as revenue upon occurrence, or at such time that the Company has a high degree of confidence that the revenue would not be reversed in a subsequent period.