DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

The Company determined that the sale of the MST Franchise represented a strategic shift that had a major effect on the business and therefore the MST Franchise met the criteria for classification as discontinued operations. Accordingly, the MST Franchise is reported as discontinued operations in accordance with ASC 205-20, Discontinued Operations. In accordance with ASC 205-20, only expenses specifically identifiable and related to a business to be disposed may be presented in discontinued operations. Historically, research and development, marketing, and general and administrative expenses in discontinued operations included corporate costs incurred directly to solely support the MST Franchise.

For the three months ended June 30, 2025 and 2024, the loss from discontinued operations, net of income taxes was $8 thousand and $11 thousand, respectively. For the six months ended June 30, 2025 and 2024, the loss from discontinued operations, net of income taxes was $16 thousand and $19 thousand, respectively. In all periods presented, the loss from discontinued operations, net of income taxes consisted solely of general and administrative expenses.

There were no non-cash items related to discontinued operations for the six months ended June 30, 2025 and 2024.

The milestone payments for sales of ZILXI, AMZEEQ and FCD105 represent contingent consideration. Contingent consideration has been accounted for as a gain contingency in accordance with ASC 450, Contingencies, and will be recognized in earnings in the period when realizable.