What changed in this filing

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Item 1. Financial Statements

2022-11-14 compared with 2022-08-12 · 82 added, 66 removed, 418 unchanged (26% of the section changed)

3 unchanged sentences

Condensed Consolidated Balance Sheets

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Current assets:

1 unchanged sentence

Accounts receivable, net 15,232,697 6,877,346

Inventories 9,420,459 8,429,882

Inventories, net 10,647,529 8,429,882

Prepaid and other current assets 3,738,842 3,339,969

14 unchanged sentences

Revolving line of credit 17,700,000 15,000,000

Operating lease noncurrent liabilities — 90,016

Operating lease non-current liabilities — 90,016

Other long-term liabilities 9,279,208 7,488,844

4 unchanged sentences

100,000,000 shares authorized;

14,649,693 and 14,742,754 shares issued and outstanding as of June 30, 2022 and December 31, 2021 , respectively

14,436,583 and 14,742,754 shares issued and outstanding as of September 30, 2022 and December 31, 2021 , respectively

47,532,375 48,452,906

8 unchanged sentences

Condensed Consolidated Statements of Operations

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2022 2021 2022 2021

33 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Six months ended June 30,

Nine months ended September 30,

Cash flows from operating activities:

7 unchanged sentences

Decrease (increase) in cash surrender value of life insurance policies over premiums paid 708,293 ( 52,070 )

Gain on receivable of life insurance policy proceeds ( 611,330 ) —

Increase in noncash interest expense 7,608 33,943

Gain on forgiveness of debt — ( 2,187,140 )

Gain on receivable of life insurance policy proceeds ( 611,330 ) —

Net changes in assets and liabilities affecting operating activities:

9 unchanged sentences

Additions to property and equipment ( 255,676 ) ( 94,485 )

Settlement of patent litigation 21,757 —

Life insurance policy proceeds received 877,597 —

Note receivable investment funding — ( 200,000 )

27 unchanged sentences

Balance, June 30, 2021 14,926,059 $ 48,688,384 $ ( 735,625 ) $ ( 144,352 ) $ 47,808,407

Share-based compensation 875 162,167 — — 162,167

Repurchase of common shares ( 76,408 ) ( 237,616 ) — — ( 237,616 )

Net loss — — ( 1,055,278 ) ( 31,415 ) ( 1,086,693 )

Balance, September 30, 2021 14,850,526 $ 48,612,935 $ ( 1,790,903 ) $ ( 175,767 ) $ 46,646,265

Common stock Retained earnings (deficit) Noncontrolling interests Total equity

3 unchanged sentences

Repurchase of common shares ( 174,149 ) ( 566,043 ) — — ( 566,043 )

Net income (loss) — — ( 1,385,253 ) ( 17,180 ) ( 1,402,433 )

Net loss — — ( 1,385,253 ) ( 17,180 ) ( 1,402,433 )

Balance, March 31, 2022 14,730,760 $ 48,046,764 $ ( 7,023,853 ) $ ( 229,508 ) $ 40,793,403

2 unchanged sentences

Repurchase of common shares ( 83,317 ) ( 196,692 ) — — ( 196,692 )

Net income (loss) — — ( 1,335,620 ) ( 29,046 ) ( 1,364,666 )

Net loss — — ( 1,335,620 ) ( 29,046 ) ( 1,364,666 )

Balance, June 30, 2022 14,649,693 $ 47,822,319 $ ( 8,359,473 ) $ ( 258,554 ) $ 39,204,292

Return of common shares ( 180,000 ) ( 399,600 ) — — ( 399,600 )

Share-based compensation — 188,449 — — 188,449

Repurchase of common shares ( 33,110 ) ( 78,793 ) — — ( 78,793 )

Net loss — — ( 408,639 ) ( 14,587 ) ( 423,226 )

Balance, September 30, 2022 14,436,583 $ 47,532,375 $ ( 8,768,112 ) $ ( 273,141 ) $ 38,491,122

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

17 unchanged sentences

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”).

The results of operations for the three and six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the entire fiscal year or any future period.

The results of operations for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the entire fiscal year or any future period.

Discontinued Operations

11 unchanged sentences

Our clinical studies were impacted as fewer patients sought elective surgeries and our access to medical facilities was substantially limited.

During 2020, 2021 and the six months ended June 30, 2022, we carefully monitored our supply chain, including the flow of raw materials into the plants that manufacture our products as well as the batches of finished product emerging from those facilities.

During 2020, 2021 and the nine months ended September 30, 2022, we carefully monitored our supply chain, including the flow of raw materials into the plants that manufacture our products as well as the batches of finished product emerging from those facilities.

Several of our brands were negatively impacted by the lockdowns and postponement of physician office visits and elective procedures.

12 unchanged sentences

Companies will have to disclose additional information, including information they use to track credit quality by year of origination for most financing receivables.

Companies will apply the ASU’s provisions as a cumulative-effect adjustment, if any, to retained earnings as of the beginning of the first reporting period in which the guidance is adopted.

Companies will apply the ASU’s provisions as a cumulative-effect adjustment, if any, to retained earnings (deficit) as of the beginning of the first reporting period in which the guidance is adopted.

Related to ASU No.

19 unchanged sentences

(2) EARNINGS (LOSS) PER SHARE

The following table reconciles the numerator and denominator used to calculate diluted earnings (loss) per share for the six months ended June 30, 2022 and 2021:

Three months ended June 30,

The following table reconciles the numerator and denominator used to calculate diluted earnings (loss) per share for the three and nine months ended September 30, 2022 and 2021:

Three months ended September 30,

Net income (loss) from continuing operations $ ( 423,226 ) $ ( 1,583,480 )

6 unchanged sentences

Weighted-average shares outstanding – diluted 14,477,478 14,880,887

Six months ended June 30,

Nine months ended September 30,

Net income (loss) from continuing operations $ ( 3,190,325 ) $ ( 1,209,545 )

6 unchanged sentences

Weighted-average shares outstanding – diluted 14,618,975 15,139,904

As of June 30, 2022 and 2021, restricted stock awards and options to purchase 289,975 and 198,300 shares of common stock, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effect would be antidilutive.

As of September 30, 2022 and 2021, restricted stock awards and options to purchase 233,750 and 158,900 shares of common stock, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effect would be antidilutive.

Product Revenues

The Company accounts for revenues from contracts with customers under ASC 606, which became effective January 1, 2018.

The Company’s net revenues consisted of the following for the three and six months ended June 30, 2022 and 2021:

Three months ended June 30, Six months ended June 30,

The Company’s net revenues consisted of the following for the three and nine months ended September 30, 2022 and 2021:

Three months ended September 30, Nine months ended September 30,

2022 2021 2022 2021

9 unchanged sentences

Total net revenues $ 11,413,072 $ 8,072,540 $ 32,887,269 $ 27,665,182

The Omeclamox-Pak revenue for the second quarter of 2022 and 2021 was the result of Cumberland currently being out of commercial inventory of this product.

The Omeclamox-Pak revenue for the third quarter of 2022 and 2021 was the result of Cumberland currently being out of commercial inventory of this product.

The packager for our Omeclamox-Pak product encountered financial difficulties due to the impact of COVID-19.

1 unchanged sentence

Discussions with the packager are ongoing.

In the second quarter of 2022, the amounts noted were normal adjustments by channel partners.

Net revenue was impacted by product return adjustments.

In the third quarter of 2022, the amounts noted were normal adjustments by channel partners.

Net revenue was positively impacted by product return adjustments.

With regard to Vaprisol, we are in the process of transitioning to a new manufacturer, who was issued an FDA Form 483 in the second quarter of 2022.

Once these 483 related issues are satisfactorily resolved by the manufacturing plant, we will then resubmit our application to the FDA for approval.

Net revenue was impacted by product return adjustments.

Net revenue was negatively impacted by product return adjustments.

Other Revenues

6 unchanged sentences

The contractual payments associated with the partner’s achievement of regulatory approvals, sales milestones and royalties on future sales are recognized as revenue upon occurrence, or at such time that the Company has a high degree of confidence that the revenue would not be reversed in a subsequent period.

During the three and six months ended June 30, 2022, we recorded $ 0.3 million and $ 0.5 million, respectively, for milestone and international licensee payments as part of other revenue.

During the three and nine months ended September 30, 2022, we recorded $ 0.1 million and $ 0.6 million, respectively, for milestone and international licensee payments as part of other revenue.

Other revenues also include funding from federal grant programs including those secured from the FDA and from those secured by Cumberland Emerging Technologies Inc.

1 unchanged sentence

The Life Sciences Center is a research center that provides scientists with access to flexible lab space and other resources to develop biomedical products.

Grant revenue from these federal grant programs totaled approximately $ 0.04 million and $ 0.3 million for the three months ended June 30, 2022 and 2021, and approximately $ 0.08 million and $ 0.3 million for the six months ended June 30, 2022 and 2021, respectively.

Grant revenue from these federal grant programs totaled approximately $ 0.2 million and $ 0.02 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $ 0.3 million each for the nine months ended September 30, 2022 and 2021.

(4) INVENTORIES

5 unchanged sentences

When evidence indicates that the carrying value may not be recoverable, a charge is taken to reduce the inventory to its current net realizable value.

At June 30, 2022 and December 31, 2021, the Company had recognized and maintained cumulative net realizable value charges for potential obsolescence and discontinuance losses of approximately $ 1.0 million and $ 1.4 million, respectively.

At September 30, 2022 and December 31, 2021, the Company had recognized and maintained cumulative net realizable value charges for potential obsolescence and discontinuance losses of approximately $ 1.8 million and $ 1.4 million, respectively.

The Company is responsible for the purchase of the active pharmaceutical ingredient (“API”) for Kristalose and maintains the inventory at third-party packagers.

As that API is consumed in production, the value of the API is transferred from raw materials to finished goods.

API for the Company's Vaprisol brand is also included in the raw materials inventory at June 30, 2022 and December 31, 2021.

API for the Company's Vaprisol brand is also included in the raw materials inventory at September 30, 2022 and December 31, 2021.

Consigned inventory represents Authorized Generic inventory stored with our partner until shipment.

1 unchanged sentence

For the Sancuso acquisition, Cumberland acquired $ 3.0 million of work in progress non-current inventory.

At June 30, 2022 and December 31, 2021, total non-current inventory, including Vibativ, Sancuso and our clinical trial drug ifetroban, was $ 10.4 million and $ 9.0 million, respectively.

The Company had no Vibativ finished goods included in non-current inventory at June 30, 2022, and $ 0.5 million included at December 31, 2021.

The Company also has obtained $ 0.2 million and $ 0.4 million of finished goods in non-current inventory for API related to its ifetroban clinical initiatives at June 30, 2022 and December 31, 2021, respectively.

At June 30, 2022 and December 31, 2021 the Company's net inventories consisted of the following:

June 30, 2022 December 31, 2021

At September 30, 2022 and December 31, 2021, total non-current inventory, including Vibativ, Sancuso and our clinical trial drug ifetroban, was $ 7.5 million and $ 9.0 million, respectively.

The Company had no Vibativ finished goods included in non-current inventory at September 30, 2022, and $ 0.5 million included at December 31, 2021.

The Company also has obtained $ 0.2 million and $ 0.4 million of finished goods in non-current inventory for API related to its ifetroban clinical initiatives at September 30, 2022 and December 31, 2021, respectively.

At September 30, 2022 and December 31, 2021 the Company's net inventories consisted of the following:

September 30, 2022 December 31, 2021

Raw materials and work in process $ 11,738,972 $ 12,374,983

5 unchanged sentences

Cumberland’s significant operating leases include the lease of approximately 25,500 square feet of office space in Nashville, Tennessee for its corporate headquarters.

This lease currently expires in October 2022.

This lease expired in October 2022.

The Company's operating leases also include the lease of approximately 14,200 square feet of wet laboratory and office space in Nashville, Tennessee by CET, our majority-owned subsidiary, where it operates the CET Life Sciences Center.

5 unchanged sentences

The weighted-average incremental borrowing rate used to discount the present value of the remaining lease payments is 7.42 %.

The weighted-average remaining lease term at June 30, 2022 is 0.5 years.

On November 15, 2021, Cumberland entered into a lease, pursuant to which the Company will lease approximately 16,631 rentable square feet of space (the “Leased Premise”) at the new development Broadwest located in Nashville, Tennessee with 1600 West End Avenue Partners, LLC.

The weighted-average remaining lease term at September 30, 2022 is 0.4 years.

On November 15, 2021, Cumberland entered into a lease, pursuant to which the Company will lease approximately 16,631 rentable square feet of space (the “Leased Premise”) at the new Broadwest development located in Nashville, Tennessee with 1600 West End Avenue Partners, LLC.

The Leased Premise will serve as the Company's new corporate headquarters.

The initial term of the Lease is one hundred fifty-seven ( 157 ) months, with two consecutive options to renew for a period of five years each, and will commence on the earlier of November 1, 2022, the date on which Cumberland takes occupancy of the Leased Premise, or the date on which Cumberland receives a temporary or permanent certificate of occupancy for the Leased Premise.

Cumberland received approval for its building permit and began the construction on the Leased Premise in June 2022.

The initial term of the Lease is one hundred fifty-seven ( 157 ) months, with two consecutive options to renew for a period of five years each.

The Broadwest lease calls for monthly base rent, operating expense and parking payments.

In year 1, the base rent starts at $ 33.06 per square foot of rentable area.

The lease also provides for several months of free rent plus a tenant improvement allowance.

Cumberland received approval for its building permit and began construction on the Leased Premise in June 2022.

On October 25, 2022, Cumberland received final building approval and a certificate of occupancy for the Leased Premise.

Lease Position

At June 30, 2022 and December 31, 2021, the Company's lease assets and liabilities were as follows:

Right-of-Use Assets June 30, 2022 December 31, 2021

At September 30, 2022 and December 31, 2021, the Company's lease assets and liabilities were as follows:

Right-of-Use Assets September 30, 2022 December 31, 2021

Operating lease right-of-use assets $ 219,850 $ 1,024,200

Lease Liabilities June 30, 2022 December 31, 2021

Lease Liabilities September 30, 2022 December 31, 2021

Operating lease current liabilities $ 229,605 $ 969,677

1 unchanged sentence

Total $ 229,605 $ 1,059,693

As of June 30, 2022, cumulative future minimum sublease income under non-cancelable operating subleases totals approximately $ 0.3 million and will be paid through the leases ending in October 2022 and April 2023.

Excluding the Broadwest agreement, future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows:

Maturity of Lease Liabilities at June 30, 2022

As of September 30, 2022, cumulative future minimum sublease income under non-cancelable operating subleases totals approximately $ 0.2 million and will be paid through the leases ending in October 2022 and April 2023.

Excluding the Broadwest lease agreement, future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows:

Maturity of Lease Liabilities at September 30, 2022

Operating Leases

4 unchanged sentences

Rent expense and sublease income were as follows:

Six months ended June 30,

Nine months ended September 30,

Rent expense $ 861,398 $ 910,975

4 unchanged sentences

In January 2019, the Company's Board of Directors established the current $ 10 million repurchase program to replace the prior authorizations.

During the six months ended June 30, 2022 and June 30, 2021, the Company repurchased 257,466 shares and 250,129 shares of common stock, respectively, for approximately $ 0.8 million each period.

At June 30, 2022, approximately $ 4.0 million of common shares was left to repurchase under this program.

During the nine months ended September 30, 2022 and September 30, 2021, the Company repurchased 290,576 shares and 326,537 shares of common stock for approximately $ 0.8 million and $ 1.0 million, respectively.

At September 30, 2022, approximately $ 3.9 million of common shares was left to repurchase under this program.

Share purchases and sales

1 unchanged sentence

These purchases are designed to increase ownership in the Company by the members of the Board.

These purchases began in April 2022.

These purchases began in April 2022 and as of September 30, 2022, a total of 27,698 shares have been purchased through this trading plan.

In November 2017, Cumberland filed a Shelf Registration on Form S-3 with the SEC associated with the sale of up to $ 100 million in corporate securities.

8 unchanged sentences

that would allow the Company to issue shares of its common stock.

The Company did not issue any shares under an ATM during the six months ended June 30, 2022 or June 30, 2021.

The Company did not issue any shares under an ATM during the nine months ended September 30, 2022 or September 30, 2021.

Restricted Share Grants and Incentive Stock Options

During the six months ended June 30, 2022 and June 30, 2021, the Company issued 65,225 shares and 36,850 shares of restricted stock to employees, advisors and directors, respectively.

During the nine months ended September 30, 2022 and September 30, 2021, the Company issued 65,225 shares and 36,850 shares of restricted stock to employees, advisors and directors, respectively.

Restricted stock issued to employees and advisors generally cliff-vests on the fourth anniversary of the date of grant and for directors on the one-year anniversary of the date of grant.

During the six months ended June 30, 2022 and 2021, the Company also issued 169,800 and 173,350 incentive stock options, respectively, to employees that cliff-vest on the fourth anniversary of the date of grant, that are set to expire in 2032 and 2031.

During the nine months ended September 30, 2022 and 2021, the Company also issued 172,300 and 174,800 incentive stock options, respectively, to employees that cliff-vest on the fourth anniversary of the date of grant, that are set to expire in 2032 and 2031, respectively.

Stock compensation expense is presented as a component of general and administrative expense in the condensed consolidated statements of operations.

In the second quarter of 2022, we recorded a credit of $ 0.1 million to share-based compensation related to the forfeiture of unvested restricted stock awards.

For the nine months ended September 30, 2022, we recorded a credit of $ 0.1 million to share-based compensation related to the forfeiture of unvested restricted stock awards.

Debt Agreement

On June 30, 2022, the Company entered into the Eighth Amendment to the Revolving Credit Loan Agreement with Pinnacle Bank (the "Pinnacle Agreement") permitting the Maximum Funded Debt Ratio to be calculated on a rolling four-quarter basis to be no more than 3.00 to 1.00 for the second and third quarters of 2022 and 2.50 to 1.00 for each quarter thereafter.

For the quarter ended June 30, 2022, we slightly exceeded the Maximum Funded Debt Ratio, but we relied on our provision in the latest amendment to address it.

On September 29, 2022, the Company entered into the Ninth Amendment to the Revolving Credit Loan Agreement with Pinnacle Bank (as amended, the "Pinnacle Agreement") to update the Funded Debt Ratio to mean the ratio of (i) Funded Debt less the amount of Unrestricted Cash in excess of $ 8,500,000 , to (ii) EBITDA, as determined at the end of each fiscal quarter on a rolling four ( 4 ) quarter basis.

For the quarter ended September 30, 2022, we were in compliance with the Funded Debt Ratio financial covenant.

On June 30, 2022, the Company entered into the Eighth Amendment to the Revolving Credit Loan Agreement with Pinnacle Bank permitting the Maximum Funded Debt Ratio to be calculated on a rolling four-quarter basis to be no more than 3.00 to 1.00 for the second and third quarters of 2022 and 2.50 to 1.00 for each quarter thereafter.

On March 31, 2022, the Company and Pinnacle Bank entered into a Seventh Amendment to the Revolving Credit Loan Agreement to revise and update the Maximum Funded Debt Ratio financial covenant and to delete from the Pinnacle Agreement the Funded Debt to Tangible Capital Ratio financial covenant.

1 unchanged sentence

On December 31, 2021, the Company and Pinnacle Bank entered into the Fifth Amendment to the Revolving Credit Note and the Sixth Amendment to the Revolving Credit Loan Agreement in order to increase the principal amount of the Note from $ 15 million to $ 20 million.

On October 28, 2021, the Company and Pinnacle Bank entered into a Fourth Amendment to the Revolving Credit Note and Fifth Amendment ("Fifth Amendment") to the Revolving Credit Loan Agreement to renew the Revolving Credit Loan.

On October 28, 2021, the Company and Pinnacle Bank entered into a Fourth Amendment to the Revolving Credit Note and Fifth Amendment to the Revolving Credit Loan Agreement to renew the Revolving Credit Loan.

The original Pinnacle Agreement was dated July 2017.

3 unchanged sentences

The current pricing under the Pinnacle Agreement provides for an interest rate spread of 1.75 % to 2.75 % above LIBOR with a minimum LIBOR of 0.90 %.

The applicable interest rate under the Pinnacle Agreement was 3.87 % at June 30, 2022.

The applicable interest rate under the Pinnacle Agreement was 5.25 % at September 30, 2022.

In addition, a fee of 0.25 % per year is charged on the unused line of credit.

1 unchanged sentence

The parties have agreed on a process to determine a new interest rate benchmark at the point the LIBOR rate is expected to be discontinued over the next 12 to 24 months.

As of June 30, 2022 and December 31, 2021, the Company had $ 19.0 million and $ 15.0 million, respectively, in borrowings outstanding under its revolving credit facility.

As of September 30, 2022 and December 31, 2021, the Company had $ 17.7 million and $ 15.0 million, respectively, in borrowings outstanding under its revolving credit facility.

Borrowings under the line of credit are collateralized by substantially all of our assets.

6 unchanged sentences

(7) INCOME TAXES

As of June 30, 2022, the Company has approximately $ 56.6 million in federal net operating loss carryforwards including approximately $ 44.1 million of net operating loss carryforwards resulting from the exercise of nonqualified stock options.

As of September 30, 2022, the Company has approximately $ 56.6 million in federal net operating loss carryforwards including approximately $ 44.1 million of net operating loss carryforwards resulting from the exercise of nonqualified stock options.

These have historically been used to significantly offset income tax obligations.

26 unchanged sentences

Contingent consideration earned and accrued in operating expenses 631,608

Balance at June 30, 2022

The contingent consideration liability of $ 6.0 million was accounted for as $ 2.4 million of other current liabilities and $ 3.6 million of other long-term liabilities on the condensed consolidated balance sheet as of June 30, 2022.

Balance at September 30, 2022

The contingent consideration liability of $ 4.8 million was accounted for as $ 1.9 million of other current liabilities and $ 3.0 million of other long-term liabilities on the condensed consolidated balance sheet as of September 30, 2022.

In November 2016, the Company announced an agreement with the Nordic Group B.V.

9 unchanged sentences

The FDA approval also resulted in a $ 1.0 million milestone payment due to Nordic.

During December 2020, Cumberland introduced RediTrex and the launch that took place in late 2021 will result in a $ 1.0 million milestone payment due to Nordic.

This milestone payment is included as a current liability at June 30, 2022.

Effective July 12, 2022, the Company entered into an amendment to our agreement with Nordic for it to assume responsibility for RediTrex marketing authorization in the U.S.

During December 2020, Cumberland introduced RediTrex and the launch that took place in late 2021 resulted in a $ 1.0 million milestone payment due to Nordic.

Effective July 12, 2022, the Company entered into an amendment to our agreement with Nordic whereby they may assume responsibility for RediTrex marketing authorization in the U.S.

and the opportunity to commercialize the product in the U.S.

1 unchanged sentence

Cumberland will continue to distribute and support the product until then.

Nordic will return the 180,000 restricted Cumberland shares we previously issued to them, refund to Cumberland the milestone payment of $ 1 million we made associated with the brand's U.S.

In accordance with the terms of the amendment, Nordic has agreed to return the 180,000 restricted Cumberland shares we previously issued to Nordic which will be cancelled, refund to Cumberland the milestone payment of $ 1.0 million we made associated with the brand's U.S.

approval and issue a credit note in favor of the Company in the amount of $ 1.0 million for the unpaid milestone payment due from us for launch of the product line.

The companies will cooperate on any transition and Cumberland will receive a long-term royalty on any Nordic sales of the product.

Cumberland has approximately $ 2.5 million in net intangible assets related to RediTrex at June 30, 2022.

Sancuso Acquisition

26 unchanged sentences

Contingent consideration earned and accrued in operating expenses 430,317

Balance at June 30, 2022

Balance at September 30, 2022

The contingent consideration liability earned and accrued in operating expenses is paid to Kyowa Kirin quarterly.

The contingent consideration liability of $ 4.7 million was accounted for as $ 1.9 million of current liabilities and $ 2.8 million of other long-term liabilities on the condensed consolidated balance sheet as of June 30, 2022.

The contingent consideration liability of $ 4.5 million was accounted for as $ 1.9 million of current liabilities and $ 2.6 million of other long-term liabilities on the condensed consolidated balance sheet as of September 30, 2022.

Ethyol and Totect

13 unchanged sentences

The Company did not incur expenses associated with these payments from Clinigen.

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2022 2021 2022 2021

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements