Company: CRNX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-029050
Chunk: 282

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 282
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 approval of paltusotine in Japan, the Company will be eligible to receive certain sales-based royalties. Initially, the Company determined that the transaction price amounted to the upfront payment of $13.0 million. During the year ended December 31, 2024, the Company achieved a $1.0 million milestone for the first indication of the development milestones and as of December 31, 2024, the Company updated its estimated transaction price to $14.0 million and recorded a cumulative catch-up adjustment of $0.4 million during year ended  December 31, 2024. As there have been no sales to date, no sales-based milestones or royalties were recognized to date. Further, using the most-likely-method, the other developmental milestone payments continue to be considered fully constrained.The control of the license was transferred to Sanwa at the inception of the contract and the Company does not have an ongoing performance obligation to support or maintain the licensed intellectual property. Revenue allocated to the data exchange obligation is recognized over time using the cost-to-cost measure as this method represents a faithful depiction of progress toward the ongoing paltusotine studies in the U.S. and related data transfer. Revenue is recognized on a gross basis as the Company is the principal. Deferred revenue consisted of the following (in thousands):   

        Year Ended December 31,

        2024

        2023

        2022

        Deferred revenues at beginning of period
         
        $
        6,806

        $
        8,341

        $
        —

        Unearned revenue from cash received during the period, excluding amounts recognized as revenue during the period

        550

        —

        8,341

        Revenue recognized that was included in deferred revenues as of the beginning of the period

        (476
        )

        (1,535
        )

        —

        Deferred revenues at end of period

        6,880

        6,806

        8,341

        Less deferred revenue, current

        (2,176
        )

        (2,056
        )

        (2,240
        )

        Deferred revenue, non-current
         
        $
        4,704

        $
        4,750

        $
        6,101

      During the years ended December 31, 2024 , 2023, and 2022, $0.9 million, $1.5 million, and $4.