NRX Pharmaceuticals, Inc. Revenue Disclosure

Note 3. Revenue and accounts receivable

 

Revenue for the year ended December 31, 2025 is derived from services rendered to patients for outpatient behavioral health care, interventional psychiatry, and pain management procedures. The Company’s services have no fixed duration and can generally be terminated by the patient or the Company at any time; therefore, each treatment or visit is considered its own stand-alone contract.

 

The Company disaggregates revenue from contracts with customers by service type and by payor, as management believes this best depicts the nature, amount, timing, and uncertainty of revenue and cash flows.

 

Revenue by Service Type (in thousands):

 

		For the Year Ended December 31, 2025
Procedures income		$	371
Therapy services			854
Total net patient service revenue		$	1,225

 

Revenue by payor (in thousands):

 

		For the Year Ended December 31, 2025
Commercial Insurance		$	736
Medicare			181
Self-Pay			308
Total net patient service revenue		$	1,225

 

The Company receives payments from the following sources: (i) commercial insurers; (ii) the federal government under the Medicare program administered by the Centers for Medicare and Medicaid Services (CMS) and other programs; (iii) state governments under Medicaid and related programs; and (iv) individual patients and clients.

 

The Company determines the transaction price based on established billing rates reduced by contractual adjustments, discounts, and implicit price concessions, which represent amounts the Company does not expect to collect based on historical experience and other relevant factors. Contractual adjustments and discounts are based on contractual agreements with commercial insurance and Medicare, discount policies, and historical experience. Implicit price concessions are based on historical collection experience. Most of the Company’s services have contracts containing variable considerations, such as contractual adjustments, discounts, and implicit price concessions, which are estimated and reflected as reductions to revenue in the period the services are provided. However, it is unlikely a significant reversal of revenue will occur when the uncertainty is resolved, and therefore, the Company includes the variable consideration in the estimated transaction price. Subsequent changes resulting from a patient’s ability to pay are recorded as credit loss expense, which is included in other operating expenses. For the year ended December 31, 2025, current expected credit loss recovery was less than $0.1 million reflecting additional allowance for credit losses following the acquisition of Dura.

 

The Company derives a significant portion of its revenue from Medicare, and other payors that receive discounts from established billing rates. The Medicare regulations and various managed care contracts under which these discounts must be estimated are complex, subject to interpretation and adjustment, and may include multiple reimbursement mechanisms for different types of services provided. Management estimates the transaction price on a payor specific basis given its interpretation of the applicable regulations or contract terms. The services authorized and provided and related reimbursement are often subject to interpretation that could result in payments that differ from the Company’s estimates.

 

Accounts Receivable and allowance for credit loss

 

Accounts Receivable (in thousands):

 

		December 31, 2025
Accounts receivable, gross		$	314
Less: allowance for credit losses			(153	)
Accounts receivable, net		$	161

 

Allowance for credit losses roll-forward (in thousands):

 

Beginning balance as of December 31, 2024		$	—
Acquisition of Dura (September 8, 2025)			113
Provision (recovery) for expected credit losses			40
Write-offs, net of recoveries			—
Ending Balance as of December 31, 2025		$	153

 

Accounts Receivable by payor (in thousands):

 

		December 31, 2025
Commercial insurance		$	147
Medicare			24
Self-pay			143
Accounts receivable, gross		$	314

 

Estimation inputs and credit quality information (summary):

 

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Receivables are pooled by payer class and aging; loss rates reflect historical experience updated for current conditions and reasonable‑and‑supportable forecasts with reversion to long‑run averages beyond the forecast horizon. The Company does not suspend recognition of revenue on a “nonaccrual” basis for trade receivables.