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SEC Filings

10-Q
ATHENEX, INC. filed this Form 10-Q on 05/09/2019
Entire Document
 

 

 

 

 

December 31, 2018

 

 

 

(In Thousands)

 

 

 

Oncology

Innovation

Platform

 

 

Global Supply

Chain Platform

 

 

Commercial

Platform

 

 

Consolidated

Total

 

Accounts receivable, gross

 

$

 

 

$

7,814

 

 

$

18,247

 

 

$

26,061

 

Allowance for doubtful accounts, chargebacks, and

   other deductions

 

 

 

 

 

(9

)

 

 

(13,101

)

 

 

(13,110

)

Accounts receivable, net

 

$

 

 

$

7,805

 

 

$

5,146

 

 

$

12,951

 

 

As of March 31, 2019, $0.1 million of the deferred revenue balance relates to customer deposits made by customers of the Global Supply Chain Platform and is included within accrued expenses on the condensed consolidated balance sheet.     

As of December 31, 2018, the $0.2 million contract liability related to customer deposits made by customers of the Global Supply Chain Platform. The Company satisfied its performance obligations allocated to these contract liabilities during the three months ended March 31, 2019.   

There were no other material changes to contract balances during the three months ended March 31, 2019.

Practical expedients used

During the adoption of ASC 606, the Company applied the practical expedient in paragraph 606-10-10-4, the Portfolio Approach. This allowed the Company to apply the new revenue standard to a portfolio of contracts with similar characteristics because it reasonably expected that the effects on the financial statements of applying the guidance to the portfolio would not differ materially from applying the guidance to the individual contracts within that portfolio. The Company used this to determine the cumulative catch-up required under the modified retrospective transaction method. The Company used the portfolio approach for product sales under the Global Supply Chain Platform and product sales under the Commercial Platform. The Company did not use this approach for its out-licensing contracts, because each of those contracts have unique economic characteristics.

The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations related to the license of intellectual property (“IP”). This practical expedient is applied because the out-licensing agreements include sales-based royalties in exchange for the license of IP accounted for in accordance with Topic 606 and there is significant uncertainty surrounding the future variable consideration that could be received.

 

15. Commitments and Contingencies 

Future minimum payments under the non-cancelable operating lease consists of the following as of December 31, 2018 (in thousands):

 

Year ending December 31:

 

Minimum payments

 

2019

 

$

2,943

 

2020

 

 

2,466

 

2021

 

 

2,040

 

2022

 

 

1,902

 

2023

 

 

1,675

 

Thereafter

 

 

3,099

 

 

 

$

14,125

 

 

Legal Proceedings

From time to time, the Company may be subject to claims and litigation arising in the ordinary course of business. These claims could include assertions that the Company’s products infringe existing patents or claims that the use of its products has caused personal injuries. The Company intends to vigorously defend any such litigation that may arise under all defenses that would be available. Regardless of the outcome, litigation can have an adverse impact on us because of prosecution, defense and settlement costs, unfavorable awards, diversion of management resources and other factors.

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