Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 8. Revenue Recognition

The Company’s Pharmaceutical Development segment recognizes revenues received from contracts with its customers by revenue source, as the Company believes it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow. The Company’s Finance Receivables segment does not have any revenues received from contracts with customers.

The following table provides the contract revenue recognized by revenue source for the three and nine months ended September 30, 2022 and 2021 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Pharmaceutical Development Segment
License Agreement(1)	$	5,103	$	176	$	5,235	$	10,786
Pharmaceutical Development and other		8		11		706		556
Total contract revenue	$	5,111	$	187	$	5,941	$	11,342

(1) $5.0 million of milestone revenue related to Enteris’s License Agreement with Cara was received during the nine months ended September 30, 2022.

The Company’s contract liabilities represent advance consideration received from customers and are recognized as revenue when the related performance obligation is satisfied.

The Company’s contract liabilities are presented as deferred revenues and are included in accounts payable and accrued liabilities in the consolidated balance sheets (in thousands):

	September 30, 2022		December 31, 2021
Pharmaceutical Development Segment
Deferred revenue	$	8	$	185
Total contract liabilities	$	8	$	185

During the nine months ended September 30, 2022, the Company recognized $0.2 million of 2021 deferred revenue from satisfaction of performance obligations. The Company did not have any contract assets nor did it have any contract liabilities related to the License Agreement as of September 30, 2022 or December 31, 2021.