3. Discontinued Operations

DSUVIA Agreement

On March 12, 2023, the Company entered into an Asset Purchase Agreement, or the DSUVIA Agreement, with Vertical Pharmaceuticals, LLC, a wholly owned subsidiary of Alora Pharmaceuticals, LLC, or Alora, for Alora’s acquisition of all assets related to DSUVIA, including inventories, equipment and intellectual property in exchange for consideration at closing of $1.1 million, a 15% payment on commercial sales of DSUVIA, 75% payment on sales of DSUVIA to the Department of Defense and up to $116.5 million in sales-based milestones. The closing of the DSUVIA Agreement occurred on April 3, 2023.

The closing of the DSUVIA Agreement included an ongoing marketing agreement, or the Marketing Agreement, pursuant to which the Company has the exclusive right to market and offer DSUVIA for sale to the DoD and Alora will pay to the Company 75% of net sales of DSUVIA sold to the DoD, subject to adjustment in certain circumstances.  

The Company’s DSUVIA business met the definition of a discontinued operation as of March 31, 2023. Accordingly, the liabilities associated with these operations have been classified as liabilities of discontinued operations in the consolidated balance sheets at December 31, 2025 and 2024. There were no assets of discontinued operations at December 31, 2025 or 2024. The operations and cash flows of the DSUVIA business are presented as discontinued for all periods presented.

The following table presents the results of the discontinued operations (in thousands):

The following table summarizes the carrying amounts of major classes of liabilities of discontinued operations for each of the periods presented (in thousands).​

In October 2024, Alora notified the Company that they had discontinued their DSUVIA sales efforts on behalf of non-DoD customers. The Company was also notified in 2025 that Alora submitted a letter to the FDA to request the withdrawal of the DSUVIA NDA. For additional information, see Note 6, “Sale of Future Payments”.