Investments

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

6. Investments

The carrying values of the Company's investments, by category, were as follows (in millions):

Date	Equity Method (1)		Fair Value (2)		Measurement Alternative (3)		Total
December 31, 2024	$	0.9	$	1.8	$	0.9	$	3.6
December 31, 2023	$	0.9	$	—	$	0.9	$	1.8

(1) The Company's equity method investments as of both December 31, 2024 and 2023, were comprised of MediBeacon and Scaled Cell.

(2) The Company's fair value investment in common stock of a publicly traded company was purchased during the year ended December 31, 2024.

(3) The Company's measurement alternative method investment as of both December 31, 2024 and 2023, was comprised of Triple Ring.

The Company's share of net losses from its equity method investments was $2.3 million and $9.4 million for the years ended December 31, 2024 and 2023, respectively.

MediBeacon

Pansend accounts for its preferred stock investment in MediBeacon under the equity method of accounting, inclusive of any fixed maturity securities (notes) issued by MediBeacon to Pansend. During the year ended December 31, 2024, MediBeacon issued an aggregate $2.3 million of 12% convertible notes to Pansend with each note due to Pansend in three years from date of issuance. As a result of these note issuances with MediBeacon, during the year ended December 31, 2024, Pansend recognized $2.3 million of equity method losses which were previously unrecognized because Pansend's carrying amount of its investment in MediBeacon, including the notes, had been previously reduced to zero.

During the year ended December 31, 2023, as a result of note modifications and additional note issuances with MediBeacon, Pansend recognized $4.7 million of equity method losses which were previously unrecognized because Pansend's carrying amount of its investment in MediBeacon had been previously reduced to zero. In addition, as a result of an equity transaction in the first quarter of 2023 at MediBeacon with Huadong, Pansend's ownership in MediBeacon decreased from approximately 47.2% as of December 31, 2022, to approximately 46.2% subsequent to the transaction, and as a result, Pansend recognized a gain of $3.8 million, which was included in Other income, net, in the Consolidated Statement of Operations for the year ended December 31, 2023, and which increased Pansend's carrying amount of its investment in MediBeacon. Concurrently, Pansend recognized equity method losses of $3.8 million which were previously unrecognized because Pansend's carrying amount of its investment in MediBeacon had been previously reduced to zero. 

As of December 31, 2024 and 2023, MediBeacon's total outstanding principal amount of notes due to Pansend was $12.0 million and $9.7 million, respectively. Interest income earned by Pansend from the MediBeacon notes totaled $1.4 million and $0.5 million for the years ended December 31, 2024 and 2023, respectively, and the related accrued interest receivable was $1.7 million and $0.3 million as of December 31, 2024 and 2023, respectively.

As of December 31, 2024 and 2023, Pansend's carrying amount of its investment in MediBeacon remained at zero, inclusive for December 31, 2024 and 2023, of the $12.0 million and $9.7 million in convertible and secured promissory notes which were offset against recognized equity method losses, and Pansend has cumulative unrecognized equity method losses relating to MediBeacon of $17.0 million.

Subsequent to year end, in January 2025, MediBeacon received approval from the U.S. Food and Drug Administration ("FDA") for its Transdermal GFR Measurement System ("TGFR"). Pursuant to the terms of MediBeacon's convertible notes, upon the FDA approval, Pansend's convertible notes and the related accrued interest together totaling $12.9 million were converted into Series 3 Preferred Stock. In addition and concurrently, pursuant to its amended commercial partnership with Huadong and, as a result of FDA approval, a $7.5 million milestone payment from Huadong for MediBeacon preferred stock was in process. Once completed, these transactions will decrease Pansend's ownership in MediBeacon from approximately 45.9% prior to the transactions to approximately 44.7% subsequent to the transaction. On a fully diluted basis, Pansend's ownership in MediBeacon will decrease from 40.1% to 39.7%.

Marketable Securities

In October 2024, the Company purchased common shares in the open market of a publicly traded company for approximately $2.0 million, which represents less than 1% of the total outstanding common stock of the issuer. These securities are remeasured at fair value each reporting period using the externally quoted market price, a Level 1 input. For the year ended December 31, 2024, unrealized fair value losses of $0.2 million related to these securities were included in Other income, net in the Consolidated Financial Statements.

Triple Ring and Scaled Cell

On November 30, 2023, the Company sold the majority of its equity method investment in Triple Ring, in which it had held 25.8% interest and, in exchange, received 240,613 shares of Scaled Cell (valued at $0.9 million) and $5.0 million in cash proceeds. The Company recognized a loss of $0.2 million on the sale of the investment, which is reflected in Other income (expense), net, in the Consolidated Statement of Operations for the year ended December 31, 2023. Subsequent to the transaction, and as of December 31, 2023, the Company held a 7.2% common interest (1.9% on a fully diluted basis) in Triple Ring, which is accounted for using the measurement alternative method. As of December 31, 2024, the Company holds a 7.2% common interest (1.6% on a fully diluted basis). As of both December 31, 2024 and 2023, the Company still held 240,613 shares of Scaled Cell, representing a 20.1% interest. The Company accounts for its equity securities without readily determinable fair values under the measurement alternative election of ASC 321, Investments—Equity Securities, whereby the Company can elect to measure an equity security without a readily determinable fair value that does not qualify for the practical expedient to estimate fair value (net asset value) at its cost minus impairment, if any.

HMN

On March 6, 2023, the Company, through New Saxon 2019 Limited (“New Saxon”), an indirect subsidiary of GMH, closed on the sale of its remaining 19.0% interest in HMN to subsidiaries and an affiliate of Hengtong Optic-Electric Co Ltd. The sale was consummated pursuant to the terms of a supplemental agreement entered into by the parties in June 2022. During the year ended December 31, 2023, New Saxon received gross proceeds of $54.2 million and interest income of $0.5 million, of which $4.4 million was withheld for a foreign tax payment, and $15.9 million was distributed to GMH's non-controlling interest holders and redeemable non-controlling interest holders pursuant to the partnership agreement. New Saxon recognized a gain on sale of $12.2 million, which was included in Other income, net, in the Consolidated Statement of Operations for the year ended December 31, 2023. During the year ended December 31, 2024, a final distribution of $0.3 million was released to GMH's non-controlling interest holders pursuant to the partnership agreement, relating to amounts that were previously withheld for reserves and contingencies. Subsequently, both New Saxon and GMH were dissolved before the end of 2024, and the Company recognized no gain or loss on dissolution.