
	December 31,
(in thousands)	2020		2021		2022
Included in accrued expenses and other current liabilities:
Product return reserves and other product revenue allowances	$	1,956	$	4,557	$	5,051
Included in other long-term liabilities:
Product return reserves	4,048		3,360		3,132
Total understatement of product return reserves and other product revenue allowances	$	6,004	$	7,917	$	8,183

Further, as a result of the Product Return Reserve Errors, revenue was overstated by $0.1 million, $1.9 million and $0.6 million, and accounts receivable was understated by $1.1 million, $0.7 million and $0.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. The changes did not impact cash or ending cash balances in the Company’s consolidated balance sheets in the periods presented in this report or in previously issued annual and quarterly financial statements.

In addition to the Product Return Reserve Errors, the Company has corrected other immaterial misstatements in the revised consolidated financial statements for the years ended December 31, 2022, 2021 and 2020 and related quarterly periods, including a $1.4 million to goodwill in each of the years ended December 31, 2022, 2021 and 2020 related to an excess purchase commitment recorded in connection with the Keryx acquisition. The changes did not impact cash or ending cash balances in the Company’s consolidated balance sheets in the periods presented in this report or in previously issued annual and quarterly financial statements.

The Company assessed the materiality of the Product Return Reserve Errors, including the presentation on prior period consolidated financial statements in accordance with the SEC Staff Accounting Bulletin No. 99, Materiality, codified in ASC Topic 250, Accounting Changes and Error Corrections (ASC 250). Based on this assessment, the Company evaluated the materiality of the impacts caused by the Product Return Reserve Errors and concluded that they do not result in a material misstatement of the Company's previously issued consolidated financial statements but would materially misstate the Company’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023. As a result, the Company determined that it was necessary to revise the consolidated financial statements it previously issued with respect to the fiscal years ended December 31, 2022, 2021 and 2020 and filed an amendment to its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 with the SEC on August 28, 2023 to reflect the revisions.

The following tables reflect the impact of this revision on the Company’s condensed consolidated financial statements as of and for the three and six months ended June 30, 2022 (dollars in thousands, except per share amounts):


	June 30, 2022
Condensed Consolidated Balance Sheet	As Previously Reported		Adjustment		As Revised
Inventories	$	36,272	$	3,954	$	40,226
Accounts receivable, net	81,869		133		82,002
Total current assets	304,163		4,087		308,250
Goodwill	55,053		3,991		59,044
Total assets	$	521,804	$	8,078	$	529,882
Accrued expenses and other current liabilities	$	91,284	$	3,721	$	95,005
Total current liabilities	233,680		3,721		237,401
Other non-current liabilities	66,889		7,721		74,610
Total liabilities	459,504		11,442		470,946
Accumulated deficit	(1,493,496)		(3,363)		(1,496,859)
Total liabilities and stockholders' equity	$	521,804	$	8,078	$	529,882


Condensed Consolidated Statement of Operations and Comprehensive Income	Three Months Ended June 30, 2022
	As Previously Reported		Adjustment		As Revised
Product revenue, net	$	43,703	$	(394)	$	43,309
Selling, general and administrative	32,807		(567)		32,240
Operating income	33,902		173		34,075
Net income	$	29,276	$	173	$	29,449
Comprehensive income	$	29,276	$	173	$	29,449
Earnings per share - basic	$0.16		$	—	$0.16
Earnings per share - diluted	$0.15		$	—	$0.15


	Six Months Ended June 30, 2022
Condensed Consolidated Statement of Operations and Comprehensive Income	As Previously Reported		Adjustment		As Revised
Product revenue, net	$	85,151	$	(470)	$	84,681
Cost of goods sold, product	31,923		771		32,694
Selling, general and administrative	77,134		(328)		76,806
Operating loss	(24,591)		(913)		(25,504)
Net loss and comprehensive loss	(33,145)		(913)		(34,058)
Net loss per share - basic and diluted	$(0.18)		$(0.01)		$(0.19)


	June 30, 2022
Condensed Consolidated Statement of Stockholders' (Deficit) Equity	As Previously Reported		Adjustment		As Revised
Accumulated deficit	$	(1,493,496)	$	(3,363)	$	(1,496,859)
Net income	$	29,276	$	173	$	29,449


	Six Months Ended June 30, 2022
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
Net loss	$	(33,145)	$	(913)	$	(34,058)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in excess inventory purchase commitments	(773)		5,627		4,854
Changes in operating assets and liabilities:
Accounts receivable	(30,994)		573		(30,421)
Inventory	1,159		(5,521)		(4,362)
Other long-term assets	9,347		665		10,012
Accrued expenses and other current liabilities	(18,625)		(839)		(19,464)
Other non-current liabilities	(9,030)		408		(8,622)
Net cash used in operating activities	$	(52,280)	$	—	$	(52,280)

The following tables reflect the impact of this revision on the Company’s condensed consolidated financial statements as of and for the three months ended March 31, 2023 and 2022 (dollars in thousands, except per share amounts):


	March 31, 2023
Condensed Consolidated Balance Sheet	As Previously Reported		Adjustment		As Revised
Inventories	$	20,604	$	(194)	$	20,410
Accounts receivable, net	17,781		950		18,731
Prepaid expenses and other current assets	25,381		(678)		24,703
Total current assets	120,719		79		120,798
Goodwill	55,053		3,991		59,044
Total assets	$	276,858	$	4,070	$	280,928
Accrued expenses and other current liabilities	$	46,367	$	4,712	$	51,079
Total current liabilities	82,944		4,712		87,656
Other non-current liabilities	12,643		4,129		16,772
Total liabilities	291,210		8,841		300,051
Accumulated deficit	(1,579,130)		(4,773)		(1,583,903)
Total liabilities and stockholders' equity	$	276,858	$	4,070	$	280,928


	Three Months Ended March 31, 2023
Condensed Consolidated Statement of Operations and Comprehensive Income	As Previously Reported		Adjustment		As Revised
Product revenue, net	$	34,828	$	(122)	$	34,706
Cost of goods sold, product	10,473		705		11,178
Selling, general and administrative	25,221		(168)		25,053
Operating loss	(24,938)		(661)		(25,599)
Net loss	$	(26,217)	$	(661)	$	(26,878)
Comprehensive loss	$	(26,217)	$	(661)	$	(26,878)
Earnings per share - basic and diluted	$	(0.14)	$	(0.01)	$	(0.15)


	March 31, 2023
Condensed Consolidated Statement of Stockholders' (Deficit) Equity	As Previously Reported		Adjustment		As Revised
Accumulated deficit	$	(1,579,130)	$	(4,773)	$	(1,583,903)
Net loss	$	(26,217)	$	(661)	$	(26,878)


	Three Months Ended March 31, 2023
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
Net loss	$	(26,217)	$	(661)	$	(26,878)
Changes in operating assets and liabilities:
Accounts receivable	21,399		154		21,553
Accrued expenses and other current liabilities	(25,047)		(68)		(25,115)
Other non-current liabilities	—		573		573
Net cash used in operating activities	$	(17,538)	$	(2)	$	(17,540)


	March 31, 2022
Condensed Consolidated Balance Sheet	As Previously Reported		Adjustment		As Revised
Inventories	$	39,422	$	1,676	$	41,098
Accounts receivable, net	64,582		776		65,358
Total current assets	302,687		2,452		305,139
Goodwill	55,053		3,991		59,044
Total assets	$	535,356	$	6,443	$	541,799
Accrued expenses and other current liabilities	$	109,660	$	4,583	$	114,243
Total current liabilities	253,914		4,583		258,497
Other non-current liabilities	77,743		5,398		83,141
Total liabilities	509,240		9,981		519,221
Accumulated deficit	(1,522,772)		(3,536)		(1,526,308)
Total liabilities and stockholders' equity	$	535,356	$	6,443	$	541,799


	Three Months Ended March 31, 2022
Condensed Consolidated Statement of Operations and Comprehensive Income	As Previously Reported		Adjustment		As Revised
Product revenue, net	$	41,448	$	(76)	$	41,372
Cost of goods sold, product	22,333		772		23,105
Selling, general and administrative	44,327		239		44,566
Operating loss	(58,493)		(1,088)		(59,581)
Net loss	$	(62,421)	$	(1,088)	$	(63,509)
Comprehensive loss	$	(62,421)	$	(1,088)	$	(63,509)
Earnings per share - basic and diluted	$(0.35)		$	—	$(0.35)


	March 31, 2022
Condensed Consolidated Statement of Stockholders' (Deficit) Equity	As Previously Reported		Adjustment		As Revised
Accumulated deficit	$	(1,522,772)	$	(3,536)	$	(1,526,308)
Net loss	$	(62,421)	$	(1,088)	$	(63,509)


	Three Months Ended March 31, 2022
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
Net loss	$	(62,421)	$	(1,088)	$	(63,509)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in excess inventory purchase commitments	(773)		773		—
Changes in operating assets and liabilities:
Accounts receivable	(13,707)		(71)		(13,778)
Inventory	(5,247)		(3,243)		(8,490)
Other long-term assets	3,297		669		3,966
Accrued expenses and other current liabilities	4,426		2,960		7,386
Net cash used in operating activities	$	(21,620)	$	—	$	(21,620)


	December 31, 2021
Condensed Consolidated Statement of Stockholders' (Deficit) Equity	As Previously Reported		Adjustment		As Revised
Accumulated deficit	$	(1,460,351)	$	(2,448)	$	(1,462,799)
Net loss	$	(282,840)	$	816	$	(282,024)