v3.22.2.2
Note 6 - Revenue From Contracts With Customers
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

6. Revenue from Contracts with Customers

 

The following table summarizes revenue from contracts with customers for the three and nine months ended September 30, 2022 and 2021, into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors (in thousands):

 

   

Three months ended
September 30, 2022

    

Nine months ended
September 30, 2022

  

Product sales:

                

DSUVIA

   $ 478     $ 1,364  

DZUVEO

     29       155  

Total product sales

   $ 507     $ 1,519  

 

   

Three months ended
September 30, 2021

    

Nine months ended
September 30, 2021

  

Product sales:

                

DSUVIA

   $ 160     $ 733  

Zalviso

     —       270  

Total product sales

     160       1,003  
                 

Contract and collaboration revenue:

                

License revenue

     1,696       1,696  

Non-cash royalty revenue related to Royalty Monetization (Note 9)

     —       83  

Royalty revenue

     —       28  

Other revenue

     6       6  

Total revenues from contract and other collaboration

     1,702       1,813  

Total revenue

   $ 1,862     $ 2,816  

 

For additional details on the Company’s accounting policy regarding revenue recognition, refer to Note 1 “Organization and Summary of Significant Accounting Policies - Revenue from Contracts with Customers” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

 

Product Sales

 

The Company’s commercial launch of DSUVIA in the United States occurred in the first quarter of 2019. Zalviso was sold in Europe by the Company’s collaboration partner, Grünenthal, through May 12, 2021, at which time, due to the termination of the Grünenthal Agreements, the rights to market and sell Zalviso in Europe reverted back to the Company. In July 2022, the European Marketing Authorization for Zalviso was withdrawn. DZUVEO sales in Europe by the Company’s collaboration partner, Aguettant, have recently commenced.

 

Contract and Other Collaboration

 

Contract and other collaboration revenue includes revenue under the Grünenthal Agreements related to research and development services, non-cash royalty revenue related to the Royalty Monetization and royalty revenue for sales of Zalviso in Europe and license revenue recognized under the DZUVEO Agreement. For the three and nine months ended September 30, 2022, the Company did not record any contract and other collaboration revenue.

 

Contract Liabilities

 

A contract liability of $1.2 million was recorded on the condensed consolidated balance sheets as deferred revenue as of September 30, 2022, $0.1 million of which represented the current portion, for the portion of the upfront fee received under the DZUVEO Agreement allocated to the material right for discounted price on future optional product supply which has not yet been satisfied. The material right contract liability will be recognized over the period the discount on future product supply is made available.

 

The following table presents changes in the Company’s contract liability for the nine months ended September 30, 2022 and 2021 (in thousands):

 

Balance at January 1, 2022

   $ 1,237  

Deductions for performance obligations satisfied:

        

In current period

     (43 )

Balance at September 30, 2022

   $ 1,194  

 

Balance at January 1, 2021

   $ 49  

Additions(1)

     1,237  

Deductions for performance obligations satisfied:

        

In current period

     (49 )

Balance at September 30, 2021

   $ 1,237  

 

(1) Deferred revenue under the DZUVEO Agreement with Aguettant.