Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.6.0.2
Segment Information
 12 Months Ended
Dec. 31, 2016
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 (table in thousands):
 
 
 
Dermatology
 
Pharmaceutical and
 
 
 
 
 
 
 
Products
 
Biotechnology
 
 
 
 
 
Year Ended December 31, 2016
 
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
 
 
 
 
 
 
 
 
(11,754)
 
 
(11,754)
 
Segment loss from operations
 
$
(4,451)
 
$
(59,319)
 
$
(1,431)
 
$
(65,201)
 
Segment assets
 
$
4,469
 
$
115,145
 
$
38,220
 
$
157,834
 
 
 
 
Dermatology
 
Pharmaceutical and
 
 
 
 
 
 
 
Products
 
Biotechnology
 
 
 
 
 
Year Ended December 31, 2015
 
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, 2016, three of the Company’s customers accounted for more than 10.0% of its total gross revenue in the amount of $ 1.9 million, $1.1 million, and $0.7 million, respectively.
 
At December 31, 2016, two of the Company’s customers 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.