Prior Period Reclassification. Certain prior year amounts in the condensed consolidated statements of operations and statements of cash flows have been reclassified to conform to the current year presentation, including a reclassification made in the presentation of amortization of intellectual property, and a reclassification of fair value adjustment from contingent consideration. Amortization of intellectual property was previously included in research and development expenses and is currently recorded in amortization of intangible assets expenses on the condensed consolidated statements of operations. Gain or loss from the fair value of contingent consideration was previously included in Other expense, net, and is currently recorded in operating expenses on the condensed consolidated statements of operations. These reclassifications did not impact operating results or cash flows for the nine months ended March 31, 2023 and 2022 or its financial position as of March 31, 2023 or June 30, 2022.

Previously Reported Financial Statements

The classification of certain of the Company’s warrants was previously recorded as equity. These warrants according to Generally Accepted Accounting Principles in the United States (“GAAP”) should have been classified as derivative warrant liabilities at fair value and marked to market at each reporting period, with changes in fair value recorded in earnings. The affected filing periods include the quarterly unaudited financial statements as of March 31, 2022 and the audited financial statements as of June 30, 2022.

SEC Staff Accounting Bulletin No. 99, “Materiality,” and the Financial Accounting Standards Board (“FASB”), Statement of Financial Accounting Concepts No. 2 “Qualitative Characteristics of Accounting Information” indicate that quantifying and aggregating adjustments is only the beginning of an analysis of materiality and that both quantitative and qualitative factors must be considered in determining whether individual adjustments are material. The Company evaluated the adjustments and determined that the impact was not material to the condensed consolidated financial statements for the quarter ended March 31, 2022 and to the condensed consolidated balance sheet as of June 30, 2022. As a result, adjustments for the immaterial adjustments were applied to these periods for comparative purposes. The adjustments did not change the Company’s reported total assets, cash and cash equivalents, operating expenses, operating losses or cash flows from operations.

The condensed consolidated financial statements as of and for the three and nine months ended March 31, 2022 have been adjusted as shown in the following tables.


	Three Months Ended
	March 31, 2022
	As Previously
	Reported		Adjustment		As Adjusted

	(in thousands)
Statement of Operation data
Gain on derivative warrant liabilities	$	211	$	(218)	$	(7)
Total other (expense) income (1)	$	348	$	(218)	$	130
Loss before income tax	$	(53,073)	$	(218)	$	(53,291)
Net loss	$	(53,073)	$	(218)	$	(53,291)
Basic and diluted net loss per common share	$	(35.80)	$	(0.10)	$	(35.90)


Statement of Stockholders' Equity data
Issuance of common stock, net of issuance cost	$	7,034	$	(3,178)	$	3,856

Net loss by segment
Rx Segment	$	(52,311)	$	(218)	$	(52,529)
Consumer Health Segment		(762)		—		(762)
Consolidated net loss	$	(53,073)	$	(218)	$	(53,291)

(1) Includes reclassification of gain or loss from fair value of contingent consideration. See Prior Period Reclassification in Note 1 – Nature of Business, Financial Condition, Basis of Presentation.


	Nine Months Ended
	March 31, 2022
	As Previously
	Reported		Adjustment		As Adjusted

	(in thousands)
Statement of Operation data
Gain on derivative warrant liabilities	$	211	$	(218)	$	(7)
Total other (expense) income (1)	$	384	$	(218)	$	166
Loss before income tax	$	(92,582)	$	(218)	$	(92,800)
Net loss	$	(92,472)	$	(218)	$	(92,690)
Basic and diluted net loss per common share	$	(68.00)	$	(0.13)	$	(68.13)


Statement of Cash Flow data
Net loss	$	(92,472)	$	(218)	$	(92,690)
Gain on derivative warrant liabilities	$	(211)	$	218	$	7

Net loss by segment
Rx Segment	$	(88,359)	$	(218)	$	(88,577)
Consumer Health Segment		(4,113)		—		(4,113)
Consolidated net loss	$	(92,472)	$	(218)	$	(92,690)

(1) Includes reclassification of gain or loss from fair value of contingent consideration. See Prior Period Reclassification in Note 1 – Nature of Business, Financial Condition, Basis of Presentation.



	As of March 31, 2022
	As Previously
	Reported		Adjustment		As Adjusted

	(in thousands)
Statement of Stockholders' Equity data
Additional paid-in capital	$	331,915	$	(3,178)	$	328,737
Accumulated deficit		(270,771)		(218)		(270,989)
Total stockholders’ equity	$	61,144	$	(3,396)	$	57,748

The consolidated balance sheet and the consolidated statement of stockholders’ equity as of June 30, 2022 have been adjusted as shown in the table below.


	As of June 30, 2022
	As Previously
	Reported		Adjustment		As Adjusted

	(in thousands)
Derivative warrant liabilities	$	—	$	1,796	$	1,796
Total liabilities	$	91,531	$	1,784	$	93,315
Additional paid-in capital	$	334,560	$	(3,174)	$	331,386
Accumulated deficit	$	(288,472)	$	1,394	$	(287,078)
Total stockholders’ equity	$	46,092	$	(1,784)	$	44,308

Income Taxes

The Company calculates its quarterly income tax provision based on estimated annual effective tax rates applied to ordinary income (or loss) and other known items computed and recognized when they occur. There have been no changes in tax law affecting the tax provision during the three and nine months ended March 31, 2023.

An ownership change (generally a 50% change in equity ownership over a three-year period) could limit the Company’s ability to offset, post-change, U.S. federal taxable income. Section 382 of the Internal Revenue Code imposes an annual limitation on the amount of post-ownership change taxable income a corporation may offset with pre-ownership change net operating loss carryforwards and certain recognized built-in losses. The Company believes that previous acquisitions, financing transactions, and equity ownership changes in the past five years may have caused a limitation on its ability to use the pre-acquisition net operating loss carryovers. The ownership change scenario could result in increased future tax liability. The Company is in the process of analyzing the impact of any possible ownership change result of which may be a change to the Company’s net deferred tax asset or liability position.

Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted

Recent Adopted Accounting Pronouncements

Reference Rate Reform. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued if contract modifications are made on or before December 31, 2022. The Company adopted the guidance effective July 1, 2022 for the accounting of its LIBOR indexed revolving loans by prospectively applying the interest rate. The Company elected not to reassess the discount rate of its leases. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial position and results of operations.

Earnings Per Share. In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation – Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options”. The amendments in ASU 2021-04 provide guidance to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2021-04 and related updates did not have a material impact on its condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

Debt—Debt with Conversion and Other Options. In June 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)— “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for convertible instruments by removing major separation models currently required. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The amendments in this update are effective for public entities that are smaller reporting companies, as defined by the Securities and Exchange Commission (”SEC”), for the fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted through a modified retrospective or full retrospective method. The Company will adopt the guidance on July 1, 2024 and does not expect the adoption of the standard to have a material impact on the Company’s condensed consolidated financial position or results of operations.

Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” requiring the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of ASU 2016-13 is to provide additional information about the expected credit losses on financial instruments and other commitments to extend credit. The standard was effective for interim and annual reporting periods beginning after December 15, 2019. However, in October 2019, the FASB approved deferral of the adoption date for smaller reporting companies for fiscal periods beginning after December 15, 2022. The Company will adopt ASU 2016-13 for the fiscal year ended June 30, 2024. The Company is evaluating the impact of adoption of this standard and does not

anticipate the application of ASU 2016-13 will have a material impact on the Company’s condensed consolidated financial position or results of operations.

For a complete set of the Company’s significant accounting policies, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2022. There have been no significant changes to the Company’s significant accounting policies during the nine months ended March 31, 2023.