REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2021

REVENUE RECOGNITION.

REVENUE RECOGNITION

NOTE 2 REVENUE RECOGNITION

Gross-to-Net Sales Adjustments

To date, our only source of product revenue has been from the U.S. sales of UKONIQ, which we began shipping to our customers in February 2021. We record our best estimate of sales discounts and allowances to which customers are likely to be entitled. The reconciliation of gross product sales to net product sales by each significant category of gross-to-net adjustments was as follows for the three months ended March 31, 2021:

(in thousands)
Gross product revenue	$	906
Gross-to-net adjustments:
Chargebacks and administrative fees		(75)
Government rebates and co-payment assistance		(37)
Trade discounts and allowances		(35)
Sales returns and allowances		(4)
Total gross-to-net adjustments(1)	$	(151)
Net product revenue	$	755

⁽¹⁾ As of March 31, 2021 approximately $0.1 million of estimated gross-net-accruals have been recorded as a reduction of accounts receivable, net and within accounts payable and accrued expenses on the condensed consolidated balance sheets.