Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.20.4
Revenue from Contracts with Customers
 3 Months Ended
Dec. 31, 2020
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customers

Note 5 – 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



December 31,



2020

 

2019

FC2

 

 

 

 

 

U.S. prescription channel

$

 9,101,739 

 

$

 6,051,130 

Public health sector

 

 4,652,419 

 

 

 4,373,794 

Total FC2

 

 13,754,158 

 

 

 10,424,924 

PREBOOST®

 

 862,831 

 

 

 153,092 

Net revenues

$

 14,616,989 

 

$

 10,578,016 



The following table presents net revenue by geographic area:





 

 

 

 

 



Three Months Ended



December 31,



2020

 

2019



 

 

 

 

 

United States

$

 10,355,838 

 

$

 6,491,154 

United Arab Emirates

 

*

 

 

 1,605,000 

Other

 

 4,261,151 

 

 

 2,481,862 

Net revenues

$

 14,616,989 

 

$

 10,578,016 

*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 Company did not have significant contract liabilities at December 31, 2020 or September 30, 2020.