Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information
20. Segment Information
 
The Company operates in three reportable segments, Dermatology Product Sales, Pharmaceutical and Biotechnology Product Development and National. The accounting policies of the Company’s segments are the same as those described in Note 2. The following tables summarize, for the periods indicated, operating results by reportable segment:
 
Cost of goods sold is directly related to product sales only. Revenues derived from co-promote revenue had no cost of goods sold
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
and
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
($ in thousands)
 
Products
 
Product
 
 
 
 
 
Three Months Ended June 30, 2017
 
Sales
 
Development
 
National
 
Consolidated
 
Net Revenue
 
$
4,054
 
$
350
 
$
46,293
 
$
50,697
 
Direct cost of goods
 
 
(878)
 
 
-
 
 
-
 
 
(878)
 
Sales and marketing costs
 
 
(2,610)
 
 
-
 
 
-
 
 
(2,610)
 
Research and development
 
 
-
 
 
(13,483)
 
 
-
 
 
(13,483)
 
General and administrative
 
 
(293)
 
 
(8,231)
 
 
-
 
 
(8,524)
 
National Expenses
 
 
-
 
 
-
 
 
(48,395)
 
 
(48,395)
 
Segment loss from operations
 
$
273
 
$
(21,364)
 
$
(2,102)
 
$
(23,193)
 
Segment assets
 
$
5,447
 
$
167,787
 
$
76,612
 
$
249,846
 
 
 
 
Dermatology
 
Pharmaceutical and
 
 
 
 
 
Products
 
Biotechnology Product
 
 
 
Three Months Ended June 30, 2016
 
Sales
 
Development
 
Consolidated
 
Net Revenue
 
$
982
 
$
1,248
 
$
2,230
 
Direct cost of goods
 
 
(324)
 
 
-
 
 
(324)
 
Sales and marketing costs
 
 
(1,998)
 
 
-
 
 
(1,998)
 
Research and development
 
 
-
 
 
(8,407)
 
 
(8,407)
 
General and administrative
 
 
-
 
 
(6,637)
 
 
(6,637)
 
 
 
 
 
 
 
 
 
 
 
 
Segment loss from operations
 
$
(1,340)
 
$
(13,796)
 
$
(15,136)
 
Segment assets
 
$
3,058
 
$
95,004
 
$
98,062
 
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
and
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
($ in thousands)
 
Products
 
Product
 
 
 
 
 
Six Months Ended June 30, 2017
 
Sales
 
Development
 
National
 
Consolidated
 
Net Revenue
 
$
6,139
 
$
1,043
 
$
88,197
 
$
95,379
 
Direct cost of goods
 
 
(1,347)
 
 
-
 
 
-
 
 
(1,347)
 
Sales and marketing costs
 
 
(4,877)
 
 
-
 
 
-
 
 
(4,877)
 
Research and development
 
 
-
 
 
(21,887)
 
 
-
 
 
(21,887)
 
General and administrative
 
 
(612)
 
 
(15,897)
 
 
-
 
 
(16,509)
 
National Expenses
 
 
-
 
 
-
 
 
(91,529)
 
 
(91,529)
 
Segment loss from operations
 
$
(697)
 
$
(36,741)
 
$
(3,332)
 
$
(40,770)
 
Segment assets
 
$
5,447
 
$
167,787
 
$
76,612
 
$
249,846
 
 
 
 
Dermatology
 
Pharmaceutical and
 
 
 
 
 
Products
 
Biotechnology
 
 
 
Six Months Ended June 30, 2016
 
Sales
 
Product Development
 
Consolidated
 
Net Revenue
 
$
1,364
 
$
1,526
 
$
2,890
 
Direct cost of goods
 
 
(324)
 
 
-
 
 
(324)
 
Sales and marketing costs
 
 
(3,884)
 
 
-
 
 
(3,884)
 
Research and development
 
 
-
 
 
(16,243)
 
 
(16,243)
 
General and administrative
 
 
-
 
 
(12,666)
 
 
(12,666)
 
 
 
 
 
 
 
 
 
 
 
 
Segment loss from operations
 
$
(2,844)
 
$
(27,383)
 
$
(30,227)
 
Segment assets
 
$
3,058
 
$
95,004
 
$
98,062
 
 
Significant Customers
 
For the three months ended June 30, 2017, two of the Company’s customers each accounted for more than 10.0% of its total gross revenue in the amount of $4.2 million and $2.2 million, respectively. The revenue from these customers is captured in the product revenue, net line item within the Condensed Consolidated Statements of Operations. For the six months ended June 30, 2017, two of the Company’s customers each accounted for more than 10.0% of its total gross revenue in the amount of $5.3 million and $3.8 million, respectively. The revenue from these customers is captured in the product revenue, net line item within the Condensed Consolidated Statements of Operations.
 
For the three months ended June 30, 2016, three of our customers accounted for more than 10.0% of our total revenue in the amount of $0.3 million, $0.3 million, and $0.3 million, respectively. The revenue from these customers is captured in the product revenue, net line item within the Condensed Consolidated Statement of Operations. For the six months ended June 30, 2016, three of our customers accounted for more than 10.0% of our total revenue in the amount of $0.6 million, $0.3 million, and $0.3 million, respectively.
 
At June 30, 2017, two of the Company’s customers each accounted for more than 10.0% of its total accounts receivable balance in the amount of $2.1 million and $0.7 million, respectively.
 
At December 31, 2016, two of the Company’s customers each accounted for more than 10.0% of its total accounts receivable balance in the amount of $1.1 million and $0.5 million, respectively.
 
Net Revenue from Pharmaceutical and Biotechnology Product Development represents collaboration revenue from TGTX in connection with Checkpoint, which is classified as related party revenue.