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Note 3 - Revenue
 3 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 3 - Revenue

 

Net revenue from continuing operations consists of sales of prescription pharmaceutical products from the Company’s ADHD Portfolio and Pediatric Portfolio, principally to a limited number of wholesale distributors and pharmacies in the United States. Net revenue is recognized at the point in time that control of the product transfers to the customer, which typically aligns with shipping terms (i.e., upon delivery), generally “free-on-board” destination when shipped domestically within the United States, consistent with contractual terms.

 

Savings offers, rebates, and wholesaler chargebacks reflect the terms of underlying agreements, which may vary. Accordingly, actual amounts will depend on the mix of sales by product and contracting entity. Future returns may not follow historical trends. The Company’s periodic adjustments of its estimates are subject to time delays between the initial product sale, and the ultimate reporting and settlement of deductions. The Company entered into negotiations with a vendor related to certain variable interest accruals that reduce revenue for the Company’s ADHD Portfolio. As a result of these negotiations, the Company and the vendor agreed to a reduction to the liability purportedly owed by the Company of $3.3 million, which resulted in a decrease in the estimated variable consideration accrual as of September 30, 2024, and a related increase in net revenue of $3.3 million for the three months ended September 30, 2024.

 

Revenue by Product Portfolio

 

Net revenue disaggregated by significant product portfolio for the three months ended September 30, 2024, and 2023, were as follows:

 

  

Three Months Ended

 
  

September 30,

 
  

2024

  

2023

 
  

(in thousands)

 

ADHD Portfolio

 $15,264  $15,128 

Pediatric Portfolio

  1,293   2,565 

Other

  17   124 

Total net revenue

 $16,574  $17,817 

 

Other includes net revenue from various discontinued deprioritized products. The Consumer Health business was divested in the first quarter of fiscal 2025 and is reported within discontinued operations (see Note 20 – Discontinued Operations).

 

Revenue by Geographic Location

 

The Company’s net revenue is predominately within the United States, with insignificant international sales.