Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

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Revenue from Contracts with Customers
 6 Months Ended
Mar. 31, 2024
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customers Note 4 – Revenue from Contracts with Customers

The Company generates 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 ENTADFI for the three and six months ended March 31, 2023. The following table presents net revenues from these three categories:

Three Months Ended

Six Months Ended

March 31,

March 31,

2024

2023

2024

2023

FC2

Global public health sector

$

3,537,994

$

2,434,287

$

5,045,001

$

4,771,284

U.S. prescription channel

597,307

4,146,160

1,231,026

4,309,164

Total FC2

4,135,301

6,580,447

6,276,027

9,080,448

ENTADFI

—

5,520

—

13,313

Net revenues

$

4,135,301

$

6,585,967

$

6,276,027

$

9,093,761

The following table presents net revenues by geographic area:

Three Months Ended

Six Months Ended

March 31,

March 31,

2024

2023

2024

2023

United States

$

1,237,629

$

4,787,258

$

2,593,718

$

5,596,635

South Africa

1,177,200

1,328,400

1,177,200

1,329,678

Mozambique

855,360

*

855,360

*

Other

865,112

470,309

1,649,749

2,167,448

Net revenues

$

4,135,301

$

6,585,967

$

6,276,027

$

9,093,761

*Less than 10% of total net revenues

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 $517,000 and $105,000 at March 31, 2024 and September 30, 2023, respectively.