Description of Business

12 Months Ended

Dec. 31, 2024

1. Description of Business

Business — MannKind Corporation and its subsidiaries (the “Company”) is a biopharmaceutical company focused on the development and commercialization of innovative therapeutic products and devices to address serious unmet medical needs for those living with endocrine and orphan lung diseases. The Company’s signature technologies – Technosphere dry-powder formulations and Dreamboat inhalation devices – offer rapid and convenient delivery of medicines to the deep lung where they can exert an effect locally or enter the systemic circulation. The Company is currently commercializing Afrezza (insulin human) Inhalation Powder, an ultra rapid-acting inhaled insulin indicated to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults that require insulin. The first product to come out of the orphan lung disease pipeline, Tyvaso DPI (treprostinil) inhalation powder, received approval from the U.S. Food and Drug Administration (“FDA”) in May 2022 for the treatment of pulmonary arterial hypertension ("PAH") and for the treatment of pulmonary hypertension associated with interstitial lung disease ("PH-ILD"). The Company's development and marketing partner, United Therapeutics ("UT") began commercializing Tyvaso DPI in June 2022 and is obligated to pay a 10% royalty on net sales of the product, of which 9% is allocated to the Company and 1% to another party as detailed in Note 16 – Commitments and Contingencies. The Company also receives a margin on supplies of Tyvaso DPI that it manufactures for UT.

Basis of Presentation — The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.

Reclassifications — Certain amounts reported in prior years have been reclassified to conform with the current year presentation. The Company has combined selling expenses with general and administrative expenses as selling, general and administrative expenses in the consolidated statements of operations. Additionally, the Company has segregated the sold portion of royalty revenue from change in prepaid expenses and other current assets in the consolidated statements of cash flows.

Segment Information — Operating segments are identified as components of an enterprise which engage in business activities that result in revenue and expenses for which separate discrete financial information is available for evaluation by the chief operating decision-maker (the “CODM”) in making decisions regarding resource allocation and assessing performance on a regular basis. The CODM is comprised of the Company's CEO and CFO. To date, the Company has viewed its operations and manages its business as a single reportable segment operating in the United States of America.

The Company manufactures products using the Technosphere technology for commercial distribution and continues to pursue other product candidates through collaboration and internal research and development of its pipeline. The business and accounting policies of the Company's single reportable segment are the same as those described in Note 1 – Description of Business and Note 2 – Summary of Significant Accounting Policies. The measure of segment assets is reported as total assets in the consolidated balance sheets. No intra-entity sales or transfers are transacted within the Company.

The key metric utilized by the CODM to assess resource allocation and performance is the Company’s segment net income (loss), which is the same as the consolidated net income (loss) reported in the consolidated statements of operations. The CODM also analyzes the Company's consolidated net income (loss) to evaluate its return on segment assets and to establish budgets and forecasts. The table below shows the details

of the Company’s segment revenues and significant expense categories regularly provided to and reviewed by the CODM and other significant segment items included in consolidated net income (loss) in the consolidated statements of operations:


	Year Ended December 31,
Revenues	2024			2023			2022
Afrezza	$	64,041		$	54,914		$	43,316
V-Go		18,288			19,115			12,931
Collaborations and services		100,840			52,954			27,924
Royalties		102,335			71,979			15,599
Total revenues		285,504			198,962			99,770
Less significant segment expenses (income):
Cost of goods sold – commercial		17,429			20,863			16,003
Cost of revenue – collaborations and services		59,173			41,908			41,494
Research and development		45,893			31,283			19,721
Selling		49,191			51,776			53,753
General and administrative		45,138			42,538			37,720
Interest income, net		(12,615	)		(6,154	)		(2,513	)
Interest expense, net		37,981			25,161			24,769
Loss on settlement of debt		20,444			—			—
Other segment items(1)		(4,718	)		3,525			(3,777	)
Consolidated net income (loss)	$	27,588		$	(11,938	)	$	(87,400	)

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(1)

Includes primarily (gain) loss on foreign currency transaction and gain on bargain purchase, offset by loss on available-for-sale securities and income tax expense.