Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.8.0.1
Segment Information
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment Information
22. 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 ($ in thousands):
 
 
 
 
 
 
Pharmaceutical
and
 
 
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
Products
Sales
 
Product
Development
 
National
 
Consolidated
 
Net Revenue
 
$
15,520
 
$
1,725
 
$
170,339
 
$
187,584
 
Direct cost of goods
 
 
(3,658)
 
 
-
 
 
-
 
 
(3,658)
 
Sales and marketing costs
 
 
(10,410)
 
 
-
 
 
-
 
 
(10,410)
 
Research and development
 
 
-
 
 
(52,486)
 
 
-
 
 
(52,486)
 
General and administrative
 
 
(1,140)
 
 
(39,347)
 
 
-
 
 
(40,487)
 
National expenses
 
 
-
 
 
-
 
 
(181,751)
 
 
(181,751)
 
Segment profit (loss) from operations
 
$
312
 
$
(90,108)
 
$
(11,412)
 
$
(101,208)
 
Segment assets
 
$
9,644
 
$
187,941
 
$
48,365
 
$
245,950
 
 
 
 
 
 
 
Pharmaceutical
and
 
 
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
Products
Sales
 
Product
Development
 
National
 
Consolidated
 
Net Revenue
 
$
3,587
 
$
2,570
 
$
10,323
 
$
16,480
 
Direct cost of goods
 
 
(790)
 
 
-
 
 
-
 
 
(790)
 
Sales and marketing costs
 
 
(5,774)
 
 
-
 
 
-
 
 
(5,774)
 
Research and development
 
 
-
 
 
(35,134)
 
 
-
 
 
(35,134)
 
General and administrative
 
 
(1,474)
 
 
(26,755)
 
 
-
 
 
(28,229)
 
National expenses
 
 
-
 
 
-
 
 
(12,263)
 
 
(12,263)
 
Segment loss from operations
 
$
(4,451)
 
$
(59,319)
 
$
(1,940)
 
$
(65,710)
 
Segment assets
 
$
4,469
 
$
115,145
 
$
51,117
 
$
170,731
 
 
 
 
 
 
 
Pharmaceutical
and
 
 
 
 
 
 
 
 
 
Dermatology
 
Biotechnology
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
Products
Sales
 
Product
Development
 
National
 
Consolidated
 
Net Revenue
 
$
273
 
$
590
 
$
-
 
$
863
 
Direct cost of goods
 
 
-
 
 
-
 
 
-
 
 
-
 
Sales and marketing costs
 
 
(2,850)
 
 
-
 
 
-
 
 
(2,850)
 
Research and development
 
 
-
 
 
(29,810)
 
 
-
 
 
(29,810)
 
General and administrative
 
 
(1,682)
 
 
(17,052)
 
 
-
 
 
(18,734)
 
Segment loss from operations
 
$
(4,259)
 
$
(46,272)
 
$
-
 
$
(50,531)
 
Segment assets
 
$
1,965
 
$
116,542
 
$
-
 
$
118,610
 
 
Corporate pre-tax loss consists of certain expenses that have not been allocated to reportable segments.
 
Significant Customers
 
For the year ended December 31, 2017, three of the Company’s customers each accounted for more than 10.0% of its total gross product revenue in the amount of $10.8 million, $7.7 million, and $5.4 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 year ended December 31, 2016, three of the Company’s customers each accounted for more than 10% of its total gross revenue in the amount of $1.9 million, $1.1 million, and $0.7 million respectively.
 
For the year ended December 31, 2015, 100% of net revenue related to co-promotion revenue.
 
At December 31, 2017, three of the Company’s customers each accounted for more than 10.0% of its total accounts receivable balance in the amount of $1.9 million, $1.5 million, and $0.9 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.