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  "documentTitle": "Heska Corporation (HSKA)",
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      "kind": "callout",
      "text": "“Depressed”? That is quite an understatement given the $15 million decline represented 12% of reported revenue in 2019. And why does discussion of Tri-Heart reference its inclusion in different reported segments?",
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      "text": "\"Depressed\"? That is quite an understatement given the $15 million decline represented 12% of reported revenue in 2019. And why does discussion of Tri-Heart reference its inclusion in different reported segments?",
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      "text": "“Of our annual revenue, heartworm produced primarily for private-label accounted for approximately $1.7 million in 2019 and $16.8 million in both 2018 and 2017, respectively. The decrease in Other CCA revenue in 2019 was driven primarily by a $14.9 million decrease from contract manufactured heartworm preventive, Tri-Heart, as a result of reduced customer demand.”\n\n“We are party to an agreement with Merck Animal Health, which grants Merck Animal Health exclusive distribution and marketing rights for our canine heartworm preventive product, TRI-HEART Plus Chewable Tablets, ultimately sold to or through veterinarians in the United States. In 2019, Merck failed to market, sell and support our heartworm preventive product, which resulted in depressed OVP segment annual revenue.”",
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      "text": "“We generate revenue within our OVP segment through contract manufacturing agreements with customers. The timing of revenue recognition of our customer contracts are generally recognized upon shipment or acceptance by our customer, under the same guidelines noted above for other outright product sales”\n\n“For outright sales of products, revenue is recognized when control of the promised product or service is transferred to our customers... Heska’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily transfer control and record revenue for product sales upon shipment.”\n\n“We do not generally allow return of products or instruments.”",
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      "text": "Tri-Heart is a heartworm medication manufactured by Heska in its Des Moines, IA facility for Merck Animal Health. Heska’s Tri-Heart revenue declined 90% in 2019. In the Company’s 2019 10-K, Heska stated that the decline resulted from Merck’s failure to market the product and, thus, reduced customer demand. Importantly, Heska notes that the Company recognizes OVP revenue upon shipment or acceptance by the customer and generally does not allow returns.",
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      "text": "\"The decrease in Other CCA revenue in 2019 was driven primarily by a $14.9 million decrease from contract manufactured heartworm preventive, Tri-Heart, as a result of reduced customer demand.\" — Heska 2019 10-K",
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      "text": "Source: Heska 2019 10-K",
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      "text": "We Believe Investors Should Be Concerned by Inconsistent Disclosure Regarding Tri-Heart",
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