NOTE 16. REVENUES FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Net Revenues

The Company has the following actively marketed products, EmrosiTM, Qbrexza®, Amzeeq®, Zilxi®, Accutane®, Exelderm®, Targadox®, and Luxamend®. All of the Company’s product revenues are recorded in the U.S.

Revenues by product are summarized as follows:

  ​ ​ ​

Year Ended December 31, 

($ in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

EmrosiTM

$

14,745

$

Qbrexza®

25,014

25,114

Accutane®

12,882

19,407

Foam franchise products (Amzeeq® & Zilxi®)

5,859

6,652

Other / legacy

2,739

3,961

Total product revenues

$

61,239

$

55,134

The Company recognized other revenue as follows:

  ​ ​ ​

Year Ended December 31, 

($ in thousands)

2025

  ​ ​ ​

2024

Milestone payment from Cutia

$

$

1,000

Cutia supply agreement

 

606

Royalties on sales of Amzeeq by Cutia

13

Total other revenue

$

619

$

1,000

Other revenue for the year ended December 31, 2025 reflects the supply of Amzeeq to Cutia and sales-based royalties earned on the net sales of Amzeeq by Cutia. In August 2025, the Company began supplying Cutia with Amzeeq for Cutia’s commercial use. See Note 5 to the Consolidated financial statements for further details on the Cutia Agreement. Other revenue for the year ended December 31, 2024 reflects a $1.0 million milestone payment from Cutia triggered by the November 11, 2024 marketing approval Cutia received for topical 4% minocycline foam from the NMPA of the PRC.

Significant Customers

As of December 31, 2025, none of the Company’s customers accounted for more than 10.0% of its total accounts receivable balance. As of December 31, 2024, one of the Company’s customers accounted for more than 10.0% of its total accounts receivable balance at 10.3%.

For the year ended December 31, 2025 and 2024, none of the Company’s customers accounted for more than 10.0% of its total gross product revenue.

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 27, 2025
2023Mar 29, 2024
2022Mar 31, 2023

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.