Deferred Royalty Obligation

6 Months Ended

Jun. 30, 2026

Deferred Royalty Obligation [Abstract]

The Company’s deferred royalty obligation liability is a debt obligation of Ironshore that was assumed as part of the Ironshore Acquisition. The deferred royalty obligation relates to royalty payments on net sales of Jornay PM that are paid to debtholders in exchange for funding provided to Ironshore by the debtholders. The royalty rate was 7.4% for net sales prior to July 1, 2025 and 9.7% thereafter through March 2032. The royalty payments are an unsecured obligation of the Company and there are no financial covenants or other restrictive covenants. The royalty payments are due semi-annually in February and August of each year based on the sales of Jornay PM in the prior six-month period.

The effective interest rate as of June 30, 2026 was approximately 13.7%.

A rollforward of the deferred royalty obligation for the six months ended June 30, 2026 and 2025 is as follows:


	Deferred Royalty Obligation
Balance as of December 31, 2025	$	121,563
Net amortization	(206)
Net carrying amount at June 30, 2026	$	121,357


	Deferred Royalty Obligation
Balance as of December 31, 2024	$	120,613
Net accretion	2,014
Net carrying amount at June 30, 2025	$	122,627

The total interest expense recognized related to the deferred royalty obligation during the six months ended June 30, 2026 was $8,067, including net amortization of $206. The total interest expense recognized related to the deferred royalty obligation during the six months ended June 30, 2025 was $7,137, including net accretion of $2,014. Total royalty payments made under the agreement during six months ended June 30, 2026 were $8,388 and were recorded as a reduction to accrued interest. Total royalty payments made under the agreement during six months ended June 30, 2025 were $4,147 and were recorded as a reduction to accrued interest.