LEASES

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

LEASES

LEASESAs of June 30, 2021, the Company has non-cancelable operating leases for its offices and certain office equipment. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice

is made to the Landlord no later than twelve months prior to the expiration of the initial term of the lease which is on December 31, 2023. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania. The Wayne, Pennsylvania office lease terminates in 2022 and will not be renewed. The Company relocated its corporate headquarters from Newark, California to Lake Forest, Illinois in 2018 and subsequently entered into two subleases which,

together, account for the entirety of the Newark facility. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain (loss) in the Condensed Consolidated Statements of Comprehensive Income.

The following table reflects lease expense for the three and six months ended June 30, 2021 and 2020 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statement Classification	2021		2020		2021		2020
Operating lease cost	Selling, general and administrative expenses	$	91	$	216	$	202	$	373
Operating lease cost	Other gain (loss), net	148		147		295		295
Total lease cost		$	239	$	363	$	497	$	668
Sublease Income	Other gain (loss), net	$	347	$	346	$	693	$	693

The following table reflects supplemental cash flow information related to leases for the three and six ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	697	606	1,462	1,224

The following table reflects supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 (in thousands):

	Financial Statement Classification	June 30, 2021		December 31, 2020
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,340	$	2,683
Noncurrent operating lease liabilities	Other long-term liabilities	1,290		2,815
Total lease liabilities		$	3,630	$	5,498

LEASES

LEASESAs of June 30, 2021, the Company has non-cancelable operating leases for its offices and certain office equipment. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice

is made to the Landlord no later than twelve months prior to the expiration of the initial term of the lease which is on December 31, 2023. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania. The Wayne, Pennsylvania office lease terminates in 2022 and will not be renewed. The Company relocated its corporate headquarters from Newark, California to Lake Forest, Illinois in 2018 and subsequently entered into two subleases which,

together, account for the entirety of the Newark facility. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain (loss) in the Condensed Consolidated Statements of Comprehensive Income.

The following table reflects lease expense for the three and six months ended June 30, 2021 and 2020 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statement Classification	2021		2020		2021		2020
Operating lease cost	Selling, general and administrative expenses	$	91	$	216	$	202	$	373
Operating lease cost	Other gain (loss), net	148		147		295		295
Total lease cost		$	239	$	363	$	497	$	668
Sublease Income	Other gain (loss), net	$	347	$	346	$	693	$	693

The following table reflects supplemental cash flow information related to leases for the three and six ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	697	606	1,462	1,224

The following table reflects supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 (in thousands):

	Financial Statement Classification	June 30, 2021		December 31, 2020
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,340	$	2,683
Noncurrent operating lease liabilities	Other long-term liabilities	1,290		2,815
Total lease liabilities		$	3,630	$	5,498