Product Revenue and Reserves for Variable Consideration

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Product Revenue and Reserves for Variable Consideration

Product Revenue and Reserves for Variable Consideration

To date, the Company’s only source of product revenue has been from the U.S. sales of Auryxia. Total net product revenue was $42.2 million and $36.8 million for the three months ended September 30, 2022 and 2021, respectively, and $127.4 million and $100.1 million for the nine months ended September 30, 2022 and 2021, respectively. The following table summarizes activity in each of the product revenue allowance and reserve categories for the nine months ended September 30, 2022 and 2021 (in thousands):

	Chargebacks and Discounts		Rebates, Fees and other Deductions		Returns		Total
Balance at December 31, 2021	$	1,278	$	26,625	$	475	$	28,378
Current provisions related to sales in current year	8,592		64,322		3,692		76,606
Adjustments related to prior year sales	(248)		33		—		(215)
Credits/payments made	(8,194)		(65,611)		(3,669)		(77,474)
Balance at September 30, 2022	$	1,428	$	25,369	$	498	$	27,295
Balance at December 31, 2020	$	802	$	39,912	$	649	$	41,363
Current provisions related to sales in current year	8,911		105,432		4,866		119,209
Adjustments related to prior year sales	(1)		(1,590)		—		(1,591)
Credits/payments made	(8,593)		(99,518)		(4,979)		(113,090)
Balance at September 30, 2021	$	1,119	$	44,236	$	536	$	45,891

Chargebacks, discounts and returns are recorded as a direct reduction of revenue on the unaudited condensed consolidated statement of operations with a corresponding reduction to accounts receivable on the unaudited condensed consolidated balance sheets. Rebates, distribution-related fees, and other sales-related deductions are recorded as a reduction in revenue on the unaudited condensed consolidated statement of operations with a corresponding increase to accrued liabilities or accounts payable on the unaudited condensed consolidated balance sheets.

Accounts receivable, net related to product sales was approximately $24.0 million and $24.6 million as of September 30, 2022 and December 31, 2021, respectively.