Business concentrations

12 Months Ended

Dec. 31, 2022

Risks And Uncertainties [Abstract]

Business concentrations

14. Business concentrations

TherapeuticsMD was previously a women’s healthcare company with a mission of creating and commercializing innovative products to support the lifespan of women from pregnancy prevention through menopause. In December 2022, we changed our business to become a pharmaceutical royalty company, currently receiving royalties on products licensed to pharmaceutical organizations that possess commercial capabilities in the relevant territories. As part of the transformation that included License Agreement with Mayne Pharma, historical results of commercial operations have been reflected as discontinued operations in the Company’s consolidated financial statements for all periods prior to the Closing Date. Assets and liabilities associated with the commercial business are classified as assets and liabilities of discontinued operations in the Company’s consolidated balance sheets. Additional disclosures regarding discontinued operations are provided in Note 2.

In 2022, 98% of license revenue related to one customer - Mayne Pharma. In 2021, 100% of license revenue related to one customer - Theramex.

As of December 31, 2022, we had a royalty receivable of $1.5 million relating to the short-term portion of receivable from Mayne Pharma and $20.3 million relating to long term portion of royalty receivable which includes royalties recognized from the Minimum Annual Royalty (see L. Revenue Recognition above). As of December 31, 2022, we also recorded $1.0 million in prepaid royalties that we received from Mayne Pharma which were recorded in accrued expenses and other current liabilities.

As of December 31, 2022, three vendors each accounted for more than 10% of our accounts payable related to continued operations. As of December 31, 2021, one vendor accounted for 54.5% of our accounts payable balance at December 31, 2021 related to continued operations.