Revenue

As described in Note

“Organization and Summary of Significant Accounting Policies,” the Company has entered into the Amended Agreements with Grünenthal related to Zalviso and began its commercial launch of DSUVIA in the

first

quarter of

2019.

June 30, 2019,

approximately

$3.3

million of deferred revenue is attributable to the discount on future manufacturing services, which the Company expects to be recognized through

2029.

For additional detail on the Company’s accounting policy regarding revenue recognition, refer to Note

“Organization and Summary of Significant Accounting Policies - Revenue from Contracts with Customers.”

The following table presents changes in the Company’s contract liability for the

six

months ended

June 30, 2019:

	Balance at Beginning of the Period		Additions		Deductions			Balance at the end of the Period
	(in thousands)
Contract liability:
Deferred revenue	$	3,463	$	131	$	(280	)	$	3,314

During the

three

and

six

months ended

June 30, 2019,

the Company recognized the following revenue (in thousands):

	Three months ended June 30, 201 9		Six months ended June 30, 201 9
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied – Amended Agreements	$	79	$	158
New activities in the period from performance obligations satisfied:
Performance obligations satisfied – Amended Agreements		649		677
Total revenue from performance obligations satisfied		728		835
Royalty revenue		158		269
Net product sales		55		102
Total revenue	$	941	$	1,206