Inventory at March 31, 2026 and December 31, 2025 consisted of the following:


	March 31,			December 31,
	2026			2025
(in thousands)	(unaudited)
Raw materials	$	2,057		$	2,041
Work in process		6,906			7,236
Accumulated provision for inventory obsolescence		(2,000	)		(2,000	)
Work in process, net		4,906			5,236
Finished goods		856			1,322
Total inventory, net	$	7,819		$	8,599

Inventory provisions as a result of excess inventory or obsolescence are recorded as a component of cost of sales in the consolidated statements of operations. For the three months ended March 31, 2026 and 2025, inventory provisions were $0 and $0, respectively.

Property and equipment, net at March 31, 2026 and December 31, 2025, consisted of the following:


	March 31,			December 31,
	2026			2025
(in thousands)	(unaudited)
Land	$	396		$	396
Lab equipment		477			477
Software		63			63
Furniture and fixtures		28			62
Computers and peripherals		23			23
Total property and equipment at cost		987			1,021
Accumulated depreciation		(564	)		(558	)
Property and equipment, net	$	423		$	463

Depreciation and amortization expenses were $6,000 and $12,000 for the three months ended March 31, 2026 and 2025, respectively.

Intangible assets consisted of the following:


	March 31,			December 31,
	2026			2025
(in thousands)	(unaudited)
Developed technology	$	25,000		$	25,000
Accumulated developed technology amortization		(14,444	)		(14,028	)
Developed technology, net		10,556			10,972
In-process research and development		4,800			4,800
Accumulated in-process research and development impairment		(800	)		(800	)
In process research and development, net		4,000			4,000
Trademarks		300			300
Accumulated trademark amortization		(173	)		(168	)
Trademarks, net		127			132
Internal use software costs - registry		1,237			1,237
Accumulated internal use software costs impairment		(371	)		(371	)
Accumulated internal use software costs amortization		(688	)		(653	)
Internal use software costs - registry, net		178			213
Patents		568			569
Accumulated patents amortization		(59	)		(54	)
Patents, net		509			515
License		217			217
Accumulated license amortization		(34	)		(28	)
License, net		183			189
Total intangible assets, net	$	15,553		$	16,021

Amortization expense of finite-lived intangible assets was $467,000 and $467,000 for the three months ended March 31, 2026 and 2025.

During 2025, in connection with its annual impairment assessment of the Company’s in-process research and development (“IPR&D”) assets, consisting of crofelemer for irritable bowel syndrome ("IBS") and pediatrics ("PEDS"), the Company determined that the combined estimated fair value of these IPR&D programs was less than their carrying amount of $4.8 million. Based on this evaluation, the Company estimated the fair value of the IPR&D assets to be $4.0 million. Accordingly, for the year ended December 31, 2025, the Company recognized an impairment loss of $800,000.

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of March 31, 2026:


(in thousands)		Amounts
2026	$		1,401
2027			1,799
2028			1,727
2029			1,727
2030			1,727
Thereafter			3,172
	$		11,553

Accrued Liabilities

Accrued liabilities at March 31, 2026 and December 31, 2025 consisted of the following:


	March 31,		December 31,
	2026		2025
(in thousands)	(unaudited)
Accrued customer credits	$	1,289	$	1,055
Accrued chargebacks and discounts		500		641
Accrued share of joint venture losses		361		351
Accrued vacation		355		357
Accrued legal costs		264		829
Accrued royalties		262		134
Accrued payroll and commission		209		263
Accrued audit and tax services		163		81
Accrued in-transit payable		160		328
Accrued local tax		5		12
Accrued interest		4		5
Accrued payroll tax		—		6
Accrued other		179		104
Total	$	3,751	$	4,166

Other accrued liabilities as of March 31, 2026 and December 31, 2025 mainly consist of consultancy fees, contract fees and scientific advisory board fees.