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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2021

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _______________ to _______________

Commission File Number: 001-00100

 

 

THERAPEUTICSMD, INC.

(Exact name of Registrant as specified in its Charter)

 

Nevada

87-0233535

(State or other jurisdiction

(I.R.S. Employer Identification No.)

of incorporation or organization)

 

 

 

951 Yamato Road, Suite 220

 

Boca Raton, Florida

33431

(Address of principal executive offices)

(Zip Code)

 

561-961-1900

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

Trading

 

Title of Each Class

symbol

Name of each exchange on which registered

Common Stock, par value $0.001 per share

TXMD

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large Accelerated Filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of August 4, 2021, there were 423,817,326 shares of the registrant’s common stock, par value $0.001 per share, outstanding.

 

 


 

Table of Contents

 

Part I – Financial Information

Page

Item. 1.

Financial Statements (Unaudited)

 

 

Consolidated Balance Sheets

1

 

Consolidated Statements of Operations

2

 

Consolidated Statements of Stockholders’ Equity (Deficit)

3

 

Consolidated Statements of Cash Flows

4

 

Notes to Unaudited Consolidated Financial Statements

5

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

27

Item 4.

Controls and Procedures

27

Part II – Other Information

 

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

29

Item 3.

Defaults Upon Senior Securities

29

Item 4.

Mine Safety Disclosures

30

Item 5.

Other Information

30

Item 6.

Exhibits

30

Signatures

31

 

 


 

 

Part I – Financial Information

Item 1.Financial Statements

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except per share data)

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(Unaudited)

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

111,424

 

 

$

80,486

 

Accounts receivable, net of allowance for credit losses of $1,273 and $1,118

   as of June 30, 2021 and December 31, 2020, respectively

 

 

33,481

 

 

 

32,382

 

Inventory

 

 

7,574

 

 

 

7,993

 

Prepaid and other current assets

 

 

7,178

 

 

 

7,543

 

Total current assets

 

 

159,657

 

 

 

128,404

 

Fixed assets, net

 

 

1,647

 

 

 

1,942

 

License rights and other intangible assets, net

 

 

40,206

 

 

 

41,445

 

Right of use assets

 

 

8,838

 

 

 

9,566

 

Other non-current assets

 

 

253

 

 

 

253

 

Total assets

 

$

210,601

 

 

$

181,610

 

Liabilities and stockholders' equity (deficit):

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

10,000

 

 

$

 

Accounts payable

 

 

14,565

 

 

 

21,068

 

Accrued expenses and other current liabilities

 

 

51,110

 

 

 

38,170

 

Total current liabilities

 

 

75,675

 

 

 

59,238

 

Long-term debt, net

 

 

175,261

 

 

 

237,698

 

Operating lease liabilities

 

 

8,381

 

 

 

8,675

 

Other non-current liabilities

 

 

358

 

 

 

 

Total liabilities

 

 

259,675

 

 

 

305,611

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

Stockholders' equity (deficit):

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001; 10,000 shares authorized, none issued

 

 

 

 

 

 

Common stock, par value $0.001; 600,000 shares authorized, 395,048 and 299,765

   issued and outstanding as of June 30, 2021 and December 31, 2020, respectively

 

 

395

 

 

 

300

 

Additional paid-in capital

 

 

911,511

 

 

 

754,644

 

Accumulated deficit

 

 

(960,980

)

 

 

(878,945

)

Total stockholders' deficit

 

 

(49,074

)

 

 

(124,001

)

Total liabilities and stockholders' equity (deficit)

 

$

210,601

 

 

$

181,610

 

 

The accompanying notes are an integral part of these consolidated financial statements.

1


 

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited - in thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Product revenue, net

 

$

23,001

 

 

$

10,701

 

 

$

42,633

 

 

$

22,952

 

License revenue

 

 

 

 

 

 

 

 

234

 

 

 

 

Total revenue, net

 

 

23,001

 

 

 

10,701

 

 

 

42,867

 

 

 

22,952

 

Cost of goods sold

 

 

4,132

 

 

 

4,400

 

 

 

8,819

 

 

 

7,115

 

Gross profit

 

 

18,869

 

 

 

6,301

 

 

 

34,048

 

 

 

15,837

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

32,164

 

 

 

29,887

 

 

 

56,188

 

 

 

68,683

 

General and administrative

 

 

19,873

 

 

 

18,710

 

 

 

38,256

 

 

 

37,103

 

Research and development

 

 

2,011

 

 

 

2,742

 

 

 

4,061

 

 

 

6,011

 

Total operating expenses

 

 

54,048

 

 

 

51,339

 

 

 

98,505

 

 

 

111,797

 

Loss from operations

 

 

(35,179

)

 

 

(45,038

)

 

 

(64,457

)

 

 

(95,960

)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense and other financing costs

 

 

(7,596

)

 

 

(7,027

)

 

 

(17,823

)

 

 

(13,289

)

Other income, net

 

 

123

 

 

 

89

 

 

 

245

 

 

 

424

 

Total other (expense), net

 

 

(7,473

)

 

 

(6,938

)

 

 

(17,578

)

 

 

(12,865

)

Loss before income taxes

 

 

(42,652

)

 

 

(51,976

)

 

 

(82,035

)

 

 

(108,825

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(42,652

)

 

$

(51,976

)

 

$

(82,035

)

 

$

(108,825

)

Loss per common share, basic and diluted

 

$

(0.11

)

 

$

(0.19

)

 

$

(0.22

)

 

$

(0.40

)

Weighted average common shares, basic and diluted

 

 

394,074

 

 

 

271,876

 

 

 

370,776

 

 

 

271,668

 

 

The accompanying notes are an integral part of these consolidated financial statements.

2


 

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Statements of Stockholders' Equity (Deficit)

(Unaudited - in thousands)

 

 

 

Common Stock

 

 

Additional

Paid in

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

Balance, January 1, 2021

 

 

299,765

 

 

$

300

 

 

$

754,644

 

 

$

(878,945

)

 

$

(124,001

)

Shares issued for sale of common stock, net of cost

 

 

92,870

 

 

 

93

 

 

 

150,806

 

 

 

 

 

 

150,899

 

Shares issued for exercise of warrants, net of cashless exercises

 

 

503

 

 

 

 

 

 

50

 

 

 

 

 

 

50

 

Shares issued for vested restricted stock units

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

 

2,957

 

 

 

 

 

 

2,957

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(39,383

)

 

 

(39,383

)

Balance, March 31, 2021

 

 

393,190

 

 

 

393

 

 

 

908,457

 

 

 

(918,328

)

 

 

(9,478

)

Shares issued for sale of common stock, net of cost

 

 

125

 

 

 

 

 

 

163

 

 

 

 

 

 

163

 

Shares issued for exercise of warrants

 

 

600

 

 

 

1

 

 

 

227

 

 

 

 

 

 

228

 

Shares issued for exercise of options

 

 

54

 

 

 

 

 

 

21

 

 

 

 

 

 

21

 

Shares issued for vested restricted stock units

 

 

929

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Shares issued for sale of common stock related to employee

   stock purchase plan

 

 

150

 

 

 

 

 

 

134

 

 

 

 

 

 

134

 

Share-based compensation

 

 

 

 

 

 

 

 

2,510

 

 

 

 

 

 

2,510

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(42,652

)

 

 

(42,652

)

Balance, June 30, 2021

 

 

395,048

 

 

$

395

 

 

$

911,511

 

 

$

(960,980

)

 

$

(49,074

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2020

 

 

271,177

 

 

$

271

 

 

$

704,351

 

 

$

(695,421

)

 

$

9,201

 

Shares issued for exercise of options

 

 

351

 

 

 

 

 

 

72

 

 

 

 

 

 

72

 

Shares issued for vested restricted stock units

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

 

2,366

 

 

 

-

 

 

 

2,366

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(56,849

)

 

 

(56,849

)

Balance, March 31, 2020

 

 

271,678

 

 

 

271

 

 

 

706,789

 

 

 

(752,270

)

 

 

(45,210

)

Shares issued for exercise of options

 

 

313

 

 

 

1

 

 

 

94

 

 

 

 

 

 

95

 

Shares issued for vested restricted stock units

 

 

303

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

 

3,003

 

 

 

 

 

 

3,003

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(51,976

)

 

 

(51,976

)

Balance, June 30, 2020

 

 

272,294

 

 

$

272

 

 

$

709,886

 

 

$

(804,246

)

 

$

(94,088

)

 

The accompanying notes are an integral part of these consolidated financial statements.

3


 

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited - in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(82,035

)

 

$

(108,825

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,061

 

 

 

2,019

 

Charges (credits) to provision for doubtful accounts

 

 

445

 

 

 

(182

)

Inventory charge

 

 

502

 

 

 

5,965

 

Debt financing fees

 

 

2,681

 

 

 

692

 

Non-cash operating lease expense, including impairment of $81 for the six months

   ended June 30, 2020

 

 

434

 

 

 

770

 

Share-based compensation

 

 

5,467

 

 

 

5,369

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,544

)

 

 

6,287

 

Inventory

 

 

(83

)

 

 

(4,277

)

Prepaid and other current assets

 

 

365

 

 

 

4,448

 

Accounts payable

 

 

(6,503

)

 

 

(1,911

)

Accrued expenses and other current liabilities

 

 

12,940

 

 

 

(5,420

)

Other non-current liabilities

 

 

358

 

 

 

 

Total adjustments

 

 

17,123

 

 

 

13,760

 

Net cash used in operating activities

 

 

(64,912

)

 

 

(95,065

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Payment of patent related costs

 

 

(423

)

 

 

(816

)

Purchase of fixed assets

 

 

(104

)

 

 

(26

)

Net cash used in investing activities

 

 

(527

)

 

 

(842

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of common stock, net of costs

 

 

151,062

 

 

 

 

Proceeds from exercise of options and warrants

 

 

299

 

 

 

166

 

Proceeds from sale of common stock related to employee stock purchase plan

 

 

134

 

 

 

 

Repayments of debt

 

 

(50,000

)

 

 

 

Borrowings of debt

 

 

 

 

 

50,000

 

Payment of debt financing fees

 

 

(5,118

)

 

 

(1,250

)

Net cash provided by financing activities

 

 

96,377

 

 

 

48,916

 

Net increase in cash

 

 

30,938

 

 

 

(46,991

)

Cash, beginning of period

 

 

80,486

 

 

 

160,830

 

Cash, end of period

 

$

111,424

 

 

$

113,839

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

14,284

 

 

$

12,032

 

 

The accompanying notes are an integral part of these consolidated financial statements.


4


 

TherapeuticsMD, Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

(Unaudited)

1.

Basis of presentation and summary of significant accounting policies

General

TherapeuticsMD, Inc., a Nevada corporation (the “Company”), and its consolidated subsidiaries are referred to collectively in this Quarterly Report on Form 10-Q (“10-Q Report”) as “TherapeuticsMD,” “we,” “our” and “us.”  This 10-Q Report includes our trademarks, trade names and service marks, such as TherapeuticsMD®, vitaMedMD®, BocaGreenMD®, IMVEXXY®, BIJUVA® and ANNOVERA®, which are protected under applicable intellectual property laws and are the property of, or licensed to, the Company. Solely for convenience, trademarks, trade names and service marks referred to in this 10-Q Report may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks. We do not intend our use or display of other parties’ trademarks, trade names or service marks to imply, and such use or display should not be construed to imply a relationship with, or endorsement or sponsorship of us by, these other parties.

We are 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. At TherapeuticsMD, we combine entrepreneurial spirit, clinical expertise, and business leadership to develop and commercialize health solutions that enable new standards of care for women. Our solutions range from a patient-controlled, long-lasting contraceptive to advanced hormone therapy pharmaceutical products. We also have a portfolio of branded and generic prescription prenatal vitamins under the vitaMedMD and BocaGreenMD brands.  Our portfolio of products focused on women’s health allows us to efficiently leverage our sales and marketing plan to grow our recently approved products.

Principles of consolidation

We prepared the consolidated financial statements included in this 10-Q Report following the requirements of the United States (“U.S.”) Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) can be condensed or omitted.

Revenues, expenses, assets, liabilities, and equities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. In our opinion, all adjustments necessary for a fair statement of the financial statements, which are of a normal and recurring nature, have been made for the interim periods reported. The information included in this 10-Q Report should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2020 Annual Report on Form 10-K (“2020 10-K Report”). Certain amounts in the consolidated financial statements and accompanying notes may not add due to rounding, and all percentages have been calculated using unrounded amounts.

Risks and uncertainties related to COVID-19

We continue to be subject to risks and uncertainties in connection with the COVID-19 pandemic. The extent of the future impact of the COVID-19 pandemic on our business continues to be highly uncertain and difficult to predict. We continue to provide an uninterrupted supply of our U.S. Food and Drug Administration (“FDA”) approved products and the vitaPearl™ family of products. We believe we have sufficient inventory of finished products to meet anticipated demand in the near future. Additionally, we believe we have sufficient active pharmaceutical ingredients (“API”) on hand for the continued manufacture of our products. The ultimate global recovery from the pandemic will be dependent on, among other things, actions taken by governments and businesses to contain and combat the virus, including any variant strains, the speed and effectiveness of vaccine production and global distribution, as well as how quickly, and to what extent, normal economic and operating conditions can resume on a sustainable basis globally.

Since the early phase of the COVID-19 pandemic, we have been using substantial virtual options to ensure business continuity. One of our subsidiaries, vitaCare Prescription Services, Inc. (“vitaCare Prescription Services”), a Florida corporation, assists patients in obtaining easy and convenient access to their prescriptions for products at a pharmacy of their choice, including via home delivery pharmacy options. We have also partnered with independent community pharmacies and multiple third-party online pharmacies and telemedicine providers that focus on contraception or menopause which provide patients real-time access to both diagnosis and treatment. We continue to support prescribers’ needs with samples and product materials through our sales force. If access is restricted, we have mailing options in place for these materials. We also have business continuity plans and infrastructure in place that allows for live virtual e-detailing of our products.

5


 

As part of our response to the COVID-19 pandemic, we implemented measures to reduce marketing expenses for 2020. We also implemented cost saving measures in 2020, which included negotiating lower fees or suspending services from third party vendors; implementing a company-wide hiring restriction; delaying or cancelling non-critical information technology projects; and eliminating non-essential travel, entertainment, meeting, and event expenses.

The full impact of the COVID-19 pandemic continues to evolve. However, we remain committed to the execution of our corporate goals, despite the ongoing COVID-19 pandemic, as demonstrated in part by the increase in product revenue throughout 2020. As of the date of issuance of these consolidated financial statements, the future extent to which the COVID-19 pandemic may continue to materially impact our financial condition, liquidity, or results of operations remains uncertain. We are continuing to assess the effect of the COVID-19 pandemic on our operations by monitoring the spread of COVID-19 and the various actions implemented to combat the pandemic throughout the world. Even after the COVID-19 pandemic has subsided, we may continue to experience adverse impacts to our business as a result of any economic recession or depression that has occurred or may occur in the future.

While we currently believe that our COVID-19 contingency plan has the ability to mitigate the effect of the COVID-19 pandemic on our business, the severity of the impact of the COVID-19 pandemic on our business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic, the duration of “social distancing” orders, the ability of our sales force to access healthcare providers to promote our products, increases in unemployment, which could reduce access to commercial health insurance for our patients, thus limiting payer coverage for our products, and the impact of the pandemic on our global supply chain, all of which are uncertain. Our future results of operations and liquidity could be materially adversely affected by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions, uncertain demand, and the impact of any initiatives or programs that we may undertake to address financial and operations challenges that we may face.

Significant accounting policies

The significant accounting policies we use for quarterly financial reporting are disclosed in Note 2, Summary of Significant Accounting Policies of the accompanying notes to the consolidated financial statements included in our 2020 10-K Report, and in the section below.

Accounting standards issued but not yet adopted

There have been no recently issued accounting standards not yet adopted by us which are expected, upon adoption, to have a material impact on our consolidated financial statements or processes.

Reclassification

Certain amounts, including type of operating expenses, reported in prior periods in the financial statements have been reclassified to conform to the current period’s presentation.

 

2.

Accounts receivable

We extend credit on an unsecured basis to most of our customers. Our exposure to credit losses may increase if our customers are adversely affected by changes in healthcare laws, coverage, and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 pandemic, or other customer-specific factors. While we actively manage our credit exposure and work to respond to both changes in our customers’ financial conditions or macroeconomic events, there can be no guarantee we will be able to mitigate all of these risks successfully. Although we have historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables in the future.

We review accounts receivable for uncollectible accounts and provide an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information, reasonable supportable forecasts and existing economic conditions and we record an allowance that presents the net amount expected to be collected. We evaluate trade accounts receivable for delinquency. We write off delinquent receivables against our allowance for doubtful accounts based on individual credit evaluations, the results of collection efforts, and specific circumstances of customers. We record recoveries of accounts previously written off when received as an increase in the allowance for doubtful accounts. To the extent data we use to calculate these estimates does not accurately reflect bad debts, adjustments to these reserves may be required.

6


 

The following sets forth activities in our allowance for credit losses (in thousands):

 

 

 

Total

 

Balance as of January 1, 2021

 

$

1,118

 

Charges to provision for credit losses

 

 

445

 

Write-off of uncollectible receivables

 

 

(290

)

Balance as of June 30, 2021

 

$

1,273

 

 

3.

Inventory

We have optimized the level of our inventory on hand, and we believe we have sufficient finished products to meet anticipated demand in the near future and sufficient raw materials for the continued manufacture of our finished products.  We rely on third parties to manufacture our finished products, and we have entered into long-term supply agreements for the manufacture of ANNOVERA, IMVEXXY, and BIJUVA, however, we do not have a long-term supply agreement for the manufacture of our prescription vitamins.  Additionally, we do not have long-term contracts for the supply of the API used in ANNOVERA and BIJUVA. If any of our third party contract manufacturers or any suppliers of the API experiences any significant difficulties in its respective manufacturing processes, do not comply with the terms of an agreement between us, or do not devote sufficient time, energy, and care to providing our manufacturing needs, we could experience significant interruptions in the supply of our products, which may have a material adverse impact on our revenue, results of operations and financial position.

Our inventory consisted of the following (in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Raw materials

 

$

4,533

 

 

$

4,423

 

Work in process

 

 

744

 

 

 

220

 

Finished products

 

 

2,297

 

 

 

3,350

 

Inventory

 

$

7,574

 

 

$

7,993

 

 

4.

Prepaid and other current assets

Our prepaid and other current assets consisted of the following (in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Insurance

 

$

540

 

 

$

2,568

 

Paragraph IV legal proceeding costs

 

 

2,660

 

 

 

 

Other

 

 

3,978

 

 

 

4,975

 

Prepaid and other current assets

 

$

7,178

 

 

$

7,543

 

 

5.

Fixed assets, net

Our fixed assets, net consisted of the following (in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Furniture and fixtures

 

$

1,407

 

 

$

1,407

 

Computer and office equipment

 

 

1,846

 

 

 

1,784

 

Computer software

 

 

454

 

 

 

412

 

Leasehold improvements

 

 

80

 

 

 

80

 

Fixed assets

 

 

3,787

 

 

 

3,683

 

Less: accumulated depreciation and

   amortization

 

 

2,140

 

 

 

1,741

 

Fixed assets, net

 

$

1,647

 

 

$

1,942

 

 

We recorded depreciation expense of $0.2 million for the three months ended June 30, 2021 and 2020, and $0.4 million for the six months ended June 30, 2021 and 2020.  

7


 

6.

License rights and other intangible assets, net

The following provides information about our license rights and other intangible assets, net (in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

 

 

 

 

 

Amount

 

 

Amortization