Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Operating segments are defined as components of an entity for which separate discrete financial information is available for evaluation by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. For the year ended December 31, 2024, the Company has identified one operating and reportable segment. The Company defines its operating segment based on internally reported financial information that is regularly reviewed by the CODM to analyze financial performance, make decisions, and allocate resources. The Company's Chief Executive Officer (“CEO”) is the CODM. The Company manages its operations as a single segment for purposes of assessing performance and making operating decisions. This segment encompasses the development and advancement of a product pipeline for the treatment of severe allergic reactions, including anaphylaxis, and the Adrenaverse epinephrine prodrug pipeline platform. Additionally, the Company serves as the exclusive manufacturer for its proprietary product, Libervant, and four licensed commercialized products.

The CODM reviews the segment's profit or loss based on net loss reported on the Statements of Operations and Comprehensive Loss. The CODM also considers forecast-to-actual variances on a monthly basis for expenses deemed significant. Furthermore, the CODM reviews the segment's assets based on total assets reported on the Balance Sheets. All long-lived assets are held in the United States. While the Company generated $57,561 and $50,583 in revenues in 2024 and 2023, respectively, management expects the Company to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials, ultimately seeking regulatory approval. The CODM uses cash forecast models to guide investment decisions and assess entity-wide operating results and performance. Net loss is used to monitor budget and rolling forecasts versus actual results. The CODM views specific categories within research and development expenses, selling expenses, and general and administrative expenses as significant due to their direct correlation with cash burn and profitability.

The following table reconciles reported revenues to net loss under the significant expense principle for the years ended December 31, 2024, and 2023:

	Year Ended December 31,
	2024		2023
Revenues	$	57,561	$	50,583
Costs and expenses:
Total Manufacture and Supply Expenses	17,872		20,831
R&D Project expenses:
Anaphylm project expenses	9,471		5,826
AQST-108 project expenses	786		—
Libervant project expenses	2		(887)
R&D other expenses:
Personnel costs1	7,724		6,231
Other2	2,297		1,934
Total Research and Development Expenses	20,280		13,104
Selling expenses:
Personnel costs1	2,382		864
Other3	5,164		775
Total Selling expenses	7,546		1,639
General & Administrative expenses:
Personnel costs1	21,064		10,770
Other4	21,570		19,341
Total General and Administrative Expenses	42,634		30,111
Total Selling, General and Administrative Expenses	50,180		31,750
Total costs and expenses	88,332		65,685
Loss from operations	(30,771)		(15,102)
Other (expenses) income	(13,380)		7,477
Net loss before income taxes	(44,151)		(7,625)
Income taxes benefits (expense)	14		(245)
Net loss	$	(44,137)	$	(7,870)
Comprehensive loss	$	(44,137)	$	(7,870)

1 - Personnel costs include payroll expenses, share-based compensation expenses and severance

2 - Other Research and Development expenses include preclinical, consulting, maintenance, and testing fees

3 - Other Selling expenses include commercialization and other related expenses

4 - Other General and Administrative expenses include legal/patent fees, insurance fees, IT expenses, investor relations expenses, regulatory fees, facility and other costs