Revenue Recognition

9 Months Ended

Sep. 30, 2018

9. Revenue Recognition

Our source of product revenue for nine months ended September 30, 2018, consists of sales of HEPLISAV-B in the U.S. The following table summarizes balances and activity in each of the product revenue allowance and reserve categories for the nine months ended September 30, 2018 (in thousands):

	Chargebacks, discounts and other fees			Returns		Total
Balance at December 31, 2017	$	-		$	-	$	-
Provision related to current period sales		1,849			249		2,098
Credit or payments made during the period		(739	)		-		(739	)
Balance at September 30, 2018	$	1,110		$	249	$	1,359

At September 30, 2018, reserves for chargebacks and discounts totaling $0.9 million were recorded as reductions of accounts receivable while the remaining reserves balances totaling $0.5 million were recorded as accrued liabilities in the condensed consolidated balance sheets.