Divestiture of FYARRO

3 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

On December 19, 2024, the Company entered into the Divestiture Agreement with KAKEN, KAKEN PHARMACEUTICAL CO., LTD, and Aadi Subsidiary for the sale to KAKEN of 100% of the outstanding shares of capital stock of Aadi Subsidiary and thereby all of the Company’s assets related to the FYARRO Business. Per the terms and subject to the conditions of the Divestiture Agreement, KAKEN paid to the Company a cash payment of $102.4 million (following applicable purchase price adjustments under the Divestiture Agreement) at the closing of the FYARRO Divestiture on March 25, 2025.

We recorded a net gain on the sale of the divestiture of $87.4 million during the three months ended March 31, 2025 which has been recorded on the unaudited condensed consolidated statement of operations and comprehensive income (loss). The $87.4 million gain represents the aggregate consideration of $102.4 million, less the assets and liabilities transferred, which are listed below (in thousands):


	March 25, 2025
Assets
Current assets:
Cash and cash equivalents	$	(1,000)
Accounts receivable, net	(6,903)
Inventory	(5,141)
Prepaid expenses and other current assets	(866)
Total current assets	(13,910)
Property and equipment, net	(6,836)
Operating lease right-of-use assets	(707)
Other assets	(64)
Total assets	$	(21,517)
Current liabilities:
Accounts payable	$	(852)
Accrued liabilities	(4,951)
Operating lease liabilities, current portion	(201)
Total current liabilities	(6,004)
Operating lease liabilities, net of current portion	(536)
Total liabilities	(6,540)
Net assets disposed of	$	(14,977)

The Company evaluated various qualitative and quantitative factors related to the disposition of the FYARRO Business and determined the transaction did not meet the criteria for discontinued operations under ASC 205-20, and therefore no reclassification has been made to prior period statements.