Scienture Holdings, Inc. Revenue Disclosure
NOTE 5 – REVENUE RECOGNITION
The Company’s sole source of revenue is product revenue from the sale of pharmaceutical products through wholesale distribution channels. ARBLI™ (SCN-102, Losartan Potassium Oral Suspension) received FDA approval in March 2025 and commenced commercialization in the third quarter of 2025. Revenue is recognized when control transfers to the wholesale distributor, generally upon delivery.
Revenue is measured at the net transaction price equal to the gross invoice price reduced by estimated variable consideration. Gross-to-net adjustments include:
Chargebacks. The difference between the invoice price charged to wholesale distributors and the lower contract price distributors extend to end-customers (retail pharmacies, hospitals, clinics). Estimated based on expected sell-through and contractual terms.
Wholesaler Rebates and Distribution Service Fees. Fees and rebates paid to wholesale distributors and group purchasing organizations (“GPOs”) under contractual arrangements. Estimated based on contracted rates and expected sales volumes.
Prompt Pay Discounts. Discounts offered to wholesale distributors for timely payment, estimated based on contractual terms.
Product Returns. Returns accepted under limited conditions (generally damaged, expired, or defective product). Returns have not been material to date given the early stage of ARBLI™ commercialization.
Estimates of variable consideration are reassessed each reporting period. Changes in estimates are recorded as adjustments to revenue in the period identified. Accrued gross-to-net liabilities are included within accrued liabilities on the consolidated balance sheets.
Revenue disaggregated by product for the years ended December 31, 2025 and 2024 is as follows:
| Product | Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||
| ARBLI™ (SCN-102, Losartan Potassium Oral Suspension) | $ | 431,609 | $ | |||||
| Legacy TrXade product revenues | 136,643 | |||||||
| Total revenues | $ | 431,609 | $ | 136,643 | ||||
Revenue for the year ended December 31, 2024 reflected residual pharmaceutical wholesale activity prior to the IPS disposition on April 30, 2025, which is classified as discontinued operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2022 | Mar 27, 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.