LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASES

    As of December 31, 2022, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). Unless renewed, the Lake Forest Lease will expire on January 31, 2024. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania, which terminated in February 2022.

    Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), which terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark Lease are accounted for in Other (loss) gain in the Consolidated Statements of Comprehensive Income (Loss). During the first quarter of 2022, the Company recognized a gain of $0.6 million from the early termination and settlement of a Newark Lease sublease.

The following table reflects lease expense and sublease income for the years ended December 31, 2022 and 2021 (in thousands):

		Year ended December 31,
	Financial Statement Classification	2022		2021
Operating lease cost	Selling, general and administrative expenses	$	158	$	307
Operating lease cost	Other (loss) gain	541		591
Total lease cost		$	699	$	898
Sublease income	Other (loss) gain	$	1,223	$	1,148

The following table reflects supplemental cash flow information related to leases for the years ended December 31, 2022 and 2021 (in thousands):

	Year ended December 31,
	2022		2021
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases	$	1,983	$	2,799

The following table reflects supplemental balance sheet information related to leases as of December 31, 2022 and 2021 (in thousands):

		December 31,
	Financial Statement Classification	2022		2021
Liabilities
Current operating lease liabilities	Other current liabilities	$	401	$	1,978
Noncurrent operating lease liabilities	Other long-term liabilities	—		397
Total lease liabilities		$	401	$	2,375

    The following table reflects other lease information as of December 31, 2022 and 2021:

	December 31,
	2022		2021
Weighted-average remaining lease term (years):
Operating leases	1.0		1.2
Weighted-average discount rate:
Operating leases	11.1	%	7.8	%

    The following table reflects future minimum lease payments under the Company’s non-cancelable operating leases as of December 31, 2022 (in thousands):

	Lease Payments
2023	$	421
Thereafter	—
Total lease payments	$	421
Less: Interest	20
Present value of lease liabilities	$	401

LEASES

LEASES

    As of December 31, 2022, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). Unless renewed, the Lake Forest Lease will expire on January 31, 2024. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania, which terminated in February 2022.

    Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), which terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark Lease are accounted for in Other (loss) gain in the Consolidated Statements of Comprehensive Income (Loss). During the first quarter of 2022, the Company recognized a gain of $0.6 million from the early termination and settlement of a Newark Lease sublease.

The following table reflects lease expense and sublease income for the years ended December 31, 2022 and 2021 (in thousands):

		Year ended December 31,
	Financial Statement Classification	2022		2021
Operating lease cost	Selling, general and administrative expenses	$	158	$	307
Operating lease cost	Other (loss) gain	541		591
Total lease cost		$	699	$	898
Sublease income	Other (loss) gain	$	1,223	$	1,148

The following table reflects supplemental cash flow information related to leases for the years ended December 31, 2022 and 2021 (in thousands):

	Year ended December 31,
	2022		2021
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases	$	1,983	$	2,799

The following table reflects supplemental balance sheet information related to leases as of December 31, 2022 and 2021 (in thousands):

		December 31,
	Financial Statement Classification	2022		2021
Liabilities
Current operating lease liabilities	Other current liabilities	$	401	$	1,978
Noncurrent operating lease liabilities	Other long-term liabilities	—		397
Total lease liabilities		$	401	$	2,375

    The following table reflects other lease information as of December 31, 2022 and 2021:

	December 31,
	2022		2021
Weighted-average remaining lease term (years):
Operating leases	1.0		1.2
Weighted-average discount rate:
Operating leases	11.1	%	7.8	%

    The following table reflects future minimum lease payments under the Company’s non-cancelable operating leases as of December 31, 2022 (in thousands):

	Lease Payments
2023	$	421
Thereafter	—
Total lease payments	$	421
Less: Interest	20
Present value of lease liabilities	$	401