Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Revenue From Contracts With Customers

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Note 4 - Revenue From Contracts With Customers
 9 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

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 nine months ended June 30, 2023. The following table presents net revenues from these three categories:

 

   

Three Months Ended

    

Nine Months Ended

  
   

June 30,

    

June 30,

  
   

2024

    

2023

    

2024

    

2023

  

FC2

                                

Global public health sector

   $ 3,402,328     $ 2,478,031     $ 8,447,329     $ 7,249,315  

U.S. prescription channel

     551,542       863,379       1,782,568       5,172,543  

Total FC2

     3,953,870       3,341,410       10,229,897       12,421,858  

ENTADFI

     —       (225 )     —       13,088  

Net revenues

   $ 3,953,870     $ 3,341,185     $ 10,229,897     $ 12,434,946  

 

The following table presents net revenues by geographic area:

 

   

Three Months Ended

    

Nine Months Ended

  
   

June 30,

    

June 30,

  
   

2024

    

2023

    

2024

    

2023

  
                                 

United States

   $ 1,107,009     $ 1,449,883     $ 3,700,727     $ 7,046,518  

South Africa

     —       612,000       1,177,200       1,941,678  

Mozambique

     1,317,480       *       2,172,840       *  

Other

     1,529,381       1,279,302       3,179,130       3,446,750  

Net revenues

   $ 3,953,870     $ 3,341,185     $ 10,229,897     $ 12,434,946  

*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 $333,000 and $105,000 at June 30, 2024 and September 30, 2023, respectively.