Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.21.1
Revenue from Contracts with Customers
 6 Months Ended
Mar. 31, 2021
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customers

Note 4 – Revenue from Contracts with Customers



The Company generates nearly all its revenue from direct product sales. Revenue from direct product sales is generally recognized when the customer obtains control of the product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Sales taxes and other similar taxes that the Company collects concurrent with revenue-producing activities are excluded from revenue.



The amount of consideration the Company ultimately receives varies depending upon sales discounts, and other incentives that the Company may offer, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The estimate of variable consideration requires significant judgment. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely upon an assessment of current contract sales terms and historical payment experience.



Product returns are typically not significant because returns are generally not allowed unless the product is damaged at time of receipt.



The Company’s revenue is from sales of FC2 in the U.S. prescription channel and direct sales of FC2 in the global public health sector, and also included sales of PREBOOST® medicated wipes for prevention of premature ejaculation before the sale of the PREBOOST® business. The following table presents net revenues from these three categories:





 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Six Months Ended



March 31,

 

March 31,



2021

 

2020

 

2021

 

2020

FC2

 

 

 

 

 

 

 

 

 

 

 

U.S. prescription channel

$

 10,312,742 

 

$

 6,952,627 

 

$

 19,414,481 

 

$

 13,003,757 

Global public health sector

 

 3,027,745 

 

 

 2,569,644 

 

 

 7,680,164 

 

 

 6,943,438 

Total FC2

 

 13,340,487 

 

 

 9,522,271 

 

 

 27,094,645 

 

 

 19,947,195 

PREBOOST®

 

 -

 

 

 420,833 

 

 

 862,831 

 

 

 573,925 

Net revenues

$

 13,340,487 

 

$

 9,943,104 

 

$

 27,957,476 

 

$

 20,521,120 



The following table presents net revenue by geographic area:





 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Six Months Ended



March 31,

 

March 31,



2021

 

2020

 

2021

 

2020



 

 

 

 

 

 

 

 

 

 

 

United States

$

 10,612,998 

 

$

 7,674,849 

 

$

 20,968,836 

 

$

 14,166,003 

Other

 

 2,727,489 

 

 

 2,268,255 

 

 

 6,988,640 

 

 

 6,355,117 

Net revenues

$

 13,340,487 

 

$

 9,943,104 

 

$

 27,957,476 

 

$

 20,521,120 



The Company’s performance obligations consist mainly of transferring control of products identified in the contracts which occurs either when: i) the product is made available to the customer for shipment; ii) the product is shipped via common carrier; or iii) the product is delivered to the customer or distributor, in accordance with the terms of the agreement. Some of the Company’s contracts require the customer to make advanced payments prior to transferring control of the products. These advanced payments create a contract liability for the Company. The balances of the Company’s contract liability, included in accrued expenses and other current liabilities on the accompanying unaudited condensed consolidated balance sheets, were approximately $140,000 and $6,000 at March 31, 2021 and September 30, 2020, respectively.