Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations

Discontinued Operations

15. Discontinued Operations

The components of loss from discontinued operations as reported in the Company’s condensed consolidated statement of operations were as follows:

	Three Months Ended
	March 31,
	2020		2019
Revenues:
Product sales, net	$	—	$	3,778
Total revenue, net		—		3,778
Costs and expenses:
Cost of revenue		—		1,570
Research and development		—		276
Sales and marketing		257		9,688
General and administrative		1		869
Amortization of definite-lived intangible		—		1,659
Total costs and expenses		258		14,062
Loss from discontinued operations	$	(258)	$	(10,284)
Net loss from discontinued operations per share, basic and diluted	$	(0.01)	$	(0.25)
Weighted average common shares outstanding, basic and diluted		41,618,429		41,248,663

The following table presents the details of product sales, net included in discontinued operations:

	Three Months Ended
	March 31,
	2020		2019
ESKATA	$	—	$	72
RHOFADE		—		3,706
Total product sales, net	$	—	$	3,778

The following table presents information related to assets and liabilities reported as discontinued operations in the Company’s condensed consolidated balance sheet: 

	March 31,		December 31,
	2020		2019
Accounts receivable, net	$	—	$	4,966
Discontinued operations - current assets	$	—	$	4,966
Accounts payable	$	306	$	1,705
Accrued expenses		2,353		2,452
Discontinued operations - current liabilities	$	2,659	$	4,157

The following table presents certain non-cash items related to discontinued operations, which are included in the Company’s condensed consolidated statement of cash flows:

	Three Months Ended
	March 31,
	2020		2019
Depreciation and amortization	$	—	$	125
Stock-based compensation expense		—		590
Total non-cash items	$	—	$	715

The Company relied on Allergan Sales, LLC (“Allergan”) to distribute RHOFADE on its behalf pursuant to the terms of a transition services agreement.  Accounts receivable, net as of March 31, 2020 and December 31, 2019 included $0 and $4,966, respectively, related to amounts invoiced by Allergan for sales of RHOFADE.  In addition, during the three months ended March 31, 2020, in accordance with the asset purchase agreement with EPI Health, the Company received $5,241 from Allergan related to sales of RHOFADE that occurred after the date the Company sold RHOFADE to EPI Health.  Accordingly, the $5,241 is payable to EPI Health and is included in accrued expenses on the Company’s condensed consolidated balance sheet as of March 31, 2020.