Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 120

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 16
Chunk 120
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        Total
         
        $
        24,047

        $
        45,025

8. Revenue Recognition

To date, our only source of revenue has been from the U.S. sales of VOQUEZNA products, which the Company began selling during the fourth quarter of 2023. The Company records its best estimate of chargebacks, sales discounts and other reserves to which customers are likely expected to be entitled to as contra accounts receivable charges, and within accrued expenses if payable to a third-party or related to product returns on the balance sheets. During the years ended December 31, 2024 and 2023, the 

F-25

Company recognized $55.3 million and $0.7 million, respectively, of net product revenues related to sales of VOQUEZNA, VOQUEZNA DUAL PAK and VOQUEZNA TRIPLE PAK. The following table provides a summary of the Company's revenue allowances and related accruals for the year ended December 31, 2024 which have been deducting in arriving at product revenues, net (in thousands): 

        Customer Credits, Discounts and Allowance

        Rebates, Returns and Co-Pay Assistance

        (contra accounts receivable)

        (accrued expenses)

        Total

        Balance as of January 1, 2024
         
        $
        332

        $
        972

        $
        1,304

        Accruals

        19,123

        53,765

        72,888

        Utilizations

        (13,796
        )

        (24,750
        )

        (38,546
        )

        Balance as of December 31, 2024
         
        $
        5,659

        $
        29,987

        $
        35,646

9. Income Taxes

For the years ended December 31, 2024 and 2023, the Company did not record a provision for income taxes due to a full valuation against its deferred taxes. A reconciliation between the provision for income taxes and income taxes computed using the U.S. federal statutory corporate tax rate is as follows (in thousands): 

        Years EndedDecember 31,

        2024

        2023

        Income taxes computed at the statutory rate
         
        $
        (70,209
        )
         
        $
        (42,334