Discontinued Operations

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenues:
Product sales, net	$	—	$	4,979	$	—	$	8,757
Total revenue, net		—		4,979		—		8,757
Costs and expenses:
Cost of revenue		—		1,709		—		3,279
Research and development		—		103		1		380
Sales and marketing		27		6,805		283		16,499
General and administrative		—		893		1		1,763
Amortization of definite-lived intangible		—		1,660		—		3,319
Total costs and expenses		27		11,170		285		25,240
Loss from discontinued operations	$	(27)	$	(6,191)	$	(285)	$	(16,483)
Net loss from discontinued operations per share, basic and diluted	$	(0.00)	$	(0.15)	$	(0.01)	$	(0.40)
Weighted average common shares outstanding, basic and diluted		42,133,646		41,274,808		41,876,037		41,261,808

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
ESKATA	$	—	$	272	$	—	$	344
RHOFADE		—		4,707		—		8,413
Total product sales, net	$	—	$	4,979	$	—	$	8,757

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

	June 30,		December 31,
	2020		2019
Accounts receivable, net	$	—	$	4,966
Discontinued operations - current assets	$	—	$	4,966
Accounts payable	$	36	$	1,705
Accrued expenses		2,253		2,452
Discontinued operations - current liabilities	$	2,289	$	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:

	Six Months Ended
	June 30,
	2020		2019
Depreciation and amortization	$	—	$	3,552
Stock-based compensation expense		—		806
Total non-cash items	$	—	$	4,358

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 June 30, 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 June 30, 2020, in accordance with the asset purchase agreement with EPI Health (see Note 13 for additional information), the Company received cash from Allergan related to sales of RHOFADE that occurred after the date the Company sold RHOFADE to EPI Health.  Accordingly, the Company had $4,950 payable to EPI Health, which is included in accrued expenses on the Company’s condensed consolidated balance sheet as of June 30, 2020.