FENNEC PHARMACEUTICALS INC.

The following table summarizes the percentage of total product revenues for PEDMARK® in the United States and abroad by Customers who individually accounted for 10% or more of total product revenues earned in the three and nine months ended September 30, 2023, and 2022, respectively: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Specialty Distributors 2023 2022 2023 2022ASD 16% —% 24% —McKesson 19 — 16 —Subtotal-Specialty Distributors 35 — 40 —Direct Customers 65 — 60 — 100% —% 100% — The activities and ending allowance balances for each significant category of discounts and allowances for PEDMARK® (which constitute variable consideration) for the nine months ended September 30, 2023, was as follows: Chargebacks, Rebates, Customer Discounts for Fees/Credits Prompt pay and and Co-Pay In thousands Other allowances Assistance TotalsBalance at December 31, 2022 $ 71 $ 163 $ 234Provision related to sales made in: Current period 116 117 233Prior periods — — —Payments and customer credits issued (31) (66) (97)Balance at March 31, 2023 $ 156 $ 214 $ 370Provision related to sales made in: 246 148 394Current period — — —Prior periods — — —Payments and customer credits issued (193) (124) (317)Balance at June 30, 2023 $ 209 $ 238 $ 447Provision related to sales made in: Current period 334 180 514Prior periods — — —Payments and customer credits issued (307) (71) (378)Balance at September 30, 2023 $ 236 $ 347 $ 583 The allowances for chargebacks, fees due to Customers, rebates and discounts for prompt payment are recorded as a contra-asset to accounts receivable, while Medicaid rebates and return allowances are in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets.Trade ReceivablesThe Company records gross trade receivables at the time of product sale to its Customers.

The Company sells its product through the following specialty distributors: Amerisource Specialty Distribution (“ASD”), McKesson Plasma and Biologics, McKesson Specialty, and Cardinal Health Specialty (collectively the “Customers” and each a “Customer”).

The Company sells its product principally through the following specialty distributors: Amerisource Specialty Distribution (“ASD”), McKesson Plasma and Biologics, McKesson Specialty and Cardinal Health Specialty (collectively the “Customers” and each a “Customer”).