Related Party Transactions

3 Months Ended

Sep. 30, 2018

Related Party Transactions

Related Party Transactions

Note 20.  Related Party Transactions

The Company had sales of $503 thousand and $834 thousand during the three months ended September 30, 2018 and 2017, respectively, to a generic distributor, Auburn Pharmaceutical Company (“Auburn"), which is a member of the Premier Buying Group.  Jeffrey Farber, a current board member, is the owner of Auburn.  Accounts receivable includes amounts due from Auburn of $506 thousand and $585 thousand at September 30, 2018 and June 30, 2018, respectively. 

The Company also had sales of $546 thousand and $467 thousand during the three months ended September 30, 2018 and 2017, respectively, to a generic distributor, KeySource, which is a member of the OptiSource Buying Group.  Albert Paonessa, a current board member, was appointed the CEO of KeySource in May 2017.  Accounts receivable includes amounts due from KeySource of $594 thousand and $514 thousand as of September 30, 2018 and June 30, 2018, respectively.

The Company incurred expenses totaling $181 thousand during the three months ended September 30, 2018 for online medical benefit services provided by a subsidiary of a variable interest entity.  See Note 13 “Commitments” for more information.  Accounts payable includes amounts due to the variable interest entity of $58 thousand as of June 30, 2018.  There were no amounts due to the variable interest entity as of September 30, 2018.