Note 15 - Dermadoctor Divestiture

12 Months Ended

Dec. 31, 2025

DERMAdoctor [Member]

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 15. DERMADOCTOR DIVESTITURE

On March 12, 2024, the Company entered into an agreement to sell 100% of the membership units of DERMAdoctor for a closing purchase price of $1.1 million (the “DERMAdoctor Divestiture”). The sale of the membership units closed, and the DERMAdoctor Divestiture occurred, on March 25, 2024. The accounting requirements for reporting the DERMAdoctor business as discontinued operations were met during the first quarter of 2024. Accordingly, the Consolidated Financial Statements and Notes to Consolidated Financial Statements reflect the results of the DERMAdoctor business as a discontinued operation for the years presented.

Revision of Prior-Period Financial Statements

During the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025, the Company identified an error in the presentation of the loss on the DERMAdoctor Divestiture and related divestiture proceeds in its previously issued consolidated financial statements for the year ended December 31, 2024. The loss on divestiture of approximately $0.9 million had been presented within continuing operations, and the related $1.1 million of proceeds from divestiture had been presented within investing activities of continuing operations in the Consolidated Statements of Cash Flows. In accordance with ASC 205-20-45-3 through 45-4, the gain or loss on disposal of a discontinued component and the related cash flows should be presented within discontinued operations. The Company has revised the prior-period presentation to reflect the loss on divestiture and related cash flows within discontinued operations. This revision affected the presentation of loss from continuing operations, loss from discontinued operations, related earnings per share from continuing operations and discontinued operations, and certain cash flow subtotals. Loss per share from continuing operations increased by $0.26 per share, with an equal offset to loss per share from discontinued operations. The revision did not affect total net loss, total net loss per share attributable to common stockholders, total assets, total liabilities, stockholders’ equity, total cash flows, or the Company’s financial position for the year ended December 31, 2024.

Results of DERMAdoctor’s operations

In accordance with the provisions of ASC 205-20, Presentation of Financial Statements: Discontinued Operations (“ASC 205-20”), the Company has not included in the results of continuing operations the results of operations of the discontinued operations in the Consolidated Statements of Operations. The results of DERMAdoctor’s operations for the years ended December 31, 2025 and 2024 have been reflected as discontinued operations in the Consolidated Statements of Operations and consist of the following (in thousands):

		For the years ended December 31,
		2025				2024 (As Revised)

Net sales		$	—			$	717
Cost of goods sold			—				493
Gross profit			—				224
Operating expenses:
Research and development			—				2
Sales and marketing			—				292
General and administrative			—				48
Total operating expenses			—				342
Operating loss			—				(118	)

Loss on divestiture			—				(871	)

Net loss from discontinued operations		$	—			$	(989	)

In accordance with the provisions of ASC 205-20, the Company has not included in the results of continuing operations the results of operations of the discontinued operations in the Consolidated Statements of Cash Flows. The results of DERMAdoctor for the years ended December 31, 2025 and 2024 have been reflected as discontinued operations in the Consolidated Statements of Cash Flows and consist of the following (in thousands):

		For the years ended December 31,
		2025				2024 (As Revised)

Operating activities:
Net loss from discontinued operations		$	—			$	(989	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash loss on divestiture			—				865
Changes in operating assets and liabilities:
Accounts receivable			—				(262	)
Inventory			—				183
Prepaid expenses and other current assets			—				(4	)
Other assets							15
Accounts payable and accrued liabilities			—				63
Operating lease liabilities			—				(31	)
Net cash used in operating activities, discontinued operations			—				(160	)

Investing activities:
Proceeds from divestiture			—				1,070
Cash transferred to New Age Investments, LLC			—				(46	)
Net cash provided by investing activities, discontinued operations			—				1,024

Net increase in cash and cash equivalents, discontinued operations		$	—			$	864