PRODUCT REVENUE, NET |
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| PRODUCT REVENUE, NET | NOTE 4—PRODUCT REVENUE, NET The Company’s product revenue, net was generated from sales of DANYELZA and consists of the following (in thousands):
The Company recognized royalty revenue from the distribution partners of $2,756,000 and $2,620,000 in the three months ended June 30, 2024 and 2023, respectively. The Company recognized royalty revenue from the distribution partners of $3,218,000 and $3,387,000 in the six months ended June 30, 2024 and 2023, respectively. Product sales to certain customers that accounted for more than 10% of total product revenue, net, for the three and six months ended June 30, 2024 and 2023 consists of the following:
As of June 30, 2024, the Company had recorded on the Consolidated Balance Sheets accounts receivable of approximately $22,191,000, of which $3,431,000 represents an unbilled portion to which the Company has unconditional rights to collect the consideration, and accrued liabilities of $300,000 both related to product sales to the Company’s distributor in Western Europe, WEP. Revenue from product sales is recorded as net of applicable provisions for rebates, chargebacks, discounts, distribution-related fees and other sales-related deductions. Accruals for chargebacks and discounts are recorded as a direct reduction to accounts receivable. Accruals for rebates, distribution-related fees without contractual right of offset and other sales-related deductions are recorded within accrued liabilities. As of June 30, 2024, the Company had recorded accounts receivable allowances of approximately $613,000 and accrued liabilities of approximately $1,681,000 related to product sales. As of December 31, 2023, the Company had recorded accounts receivable allowances of approximately $492,000 and accrued liabilities of $2,309,000 related to product sales. An analysis of the change in reserves for discounts and allowances is summarized as follows (in thousands):
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