Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.8.0.1
Segment Information
 9 Months Ended
Sep. 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.
 
 
 
Dermatology
 
Pharmaceutical
and
Biotechnology
 
 
 
 
 
 
 
($ in thousands)
 
Products
 
Product
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
Sales
 
Development
 
National
 
Consolidated
 
Net Revenue
 
$
2,170
 
$
350
 
$
44,366
 
$
46,886
 
Direct cost of goods
 
 
(505)
 
 
-
 
 
 
 
 
(505)
 
Sales and marketing costs
 
 
(2,786)
 
 
-
 
 
 
 
 
(2,786)
 
Research and development
 
 
 
 
 
(16,190)
 
 
 
 
 
(16,190)
 
General and administrative
 
 
(349)
 
 
(11,969)
 
 
 
 
 
(12,318)
 
National Expenses
 
 
-
 
 
-
 
 
(47,690)
 
 
(47,690)
 
Segment loss from operations
 
$
(1,470)
 
$
(27,809)
 
$
(3,324)
 
$
(32,603)
 
Segment assets
 
$
7,362
 
$
160,038
 
$
77,691
 
$
245,091
 
 
 
 
 
 
 
Pharmaceutical
and
 
 
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
 
 
($ in thousands)
 
Products
 
Product
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
Sales
 
Development
 
National
 
Consolidated
 
Net Revenue
 
$
429
 
$
546
 
$
-
 
$
975
 
Direct cost of goods
 
 
(41)
 
 
-
 
 
-
 
 
(41)
 
Sales and marketing costs
 
 
(1,244)
 
 
-
 
 
-
 
 
(1,244)
 
Research and development
 
 
-
 
 
(8,316)
 
 
-
 
 
(8,316)
 
General and administrative
 
 
(422)
 
 
(7,198)
 
 
-
 
 
(7,620)
 
Segment loss from operations
 
$
(1,278)
 
$
(14,968)
 
$
-
 
$
(16,246)
 
Segment assets
 
$
2,657
 
$
103,225
 
$
39,539
 
$
145,421
 
 
 
 
Dermatology
 
Pharmaceutical
and
Biotechnology
 
 
 
 
 
 
 
($ in thousands)
 
Products
 
Product
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Sales
 
Development
 
National
 
Consolidated
 
Net Revenue
 
$
8,309
 
$
1,393
 
$
132,563
 
$
142,265
 
Direct cost of goods
 
 
(1,852)
 
 
-
 
 
 
 
 
(1,852)
 
Sales and marketing costs
 
 
(7,663)
 
 
-
 
 
 
 
 
(7,663)
 
Research and development
 
 
 
 
 
(38,077)
 
 
 
 
 
(38,077)
 
General and administrative
 
 
(961)
 
 
(27,866)
 
 
 
 
 
(28,827)
 
National Expenses
 
 
-
 
 
-
 
 
(139,219)
 
 
(139,219)
 
Segment loss from operations
 
$
(2,167)
 
$
(64,550)
 
$
(6,656)
 
$
(73,373)
 
Segment assets
 
$
7,362
 
$
160,038
 
$
77,691
 
$
245,091
 
 
 
 
 
 
 
Pharmaceutical
and
 
 
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
 
 
($ in thousands)
 
Products
 
Product
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 
Sales
 
Development
 
National
 
Consolidated
 
Net Revenue
 
$
1,793
 
$
2,072
 
$
-
 
$
3,865
 
Direct cost of goods
 
 
(365)
 
 
-
 
 
-
 
 
(365)
 
Sales and marketing costs
 
 
(4,212)
 
 
-
 
 
-
 
 
(4,212)
 
Research and development
 
 
-
 
 
(24,559)
 
 
-
 
 
(24,559)
 
General and administrative
 
 
(1,338)
 
 
(19,864)
 
 
-
 
 
(21,202)
 
Segment loss from operations
 
$
(4,122)
 
$
(42,351)
 
$
-
 
$
(46,473)
 
Segment assets
 
$
2,657
 
$
103,225
 
$
39,539
 
$
145,421
 
 
Significant Customers
 
For the three months ended September 30, 2017, two of the Company’s customers each accounted for more than 10.0% of its total gross product revenue in the amount of $3.0 million and $1.7 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 nine months ended September 30, 2017, two of the Company’s customers each accounted for more than 10.0% of its total gross revenue in the amount of $6.7 million and $6.0 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 September 30, 2016, two of the Company’s customers accounted for more than 10.0% of its total product revenue in the amount of $0.2 million and $43,000, respectively. The revenue from these customers is captured in the product revenue, net line item within the Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2016, three of its customers accounted for more than 10.0% of its total revenue in the amount of $0.8 million, $0.3 million, and $0.3 million, respectively.
 
At September 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 $1.7 million and $1.5 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.