v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt

Note G – Debt

Debt obligations consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):

 

Debt instrument

 

Principal at
June 30, 2026

 

 

Unamortized
Debt Discount

 

 

Balance at
June 30, 2026

 

Current Portion:

 

 

 

 

 

 

 

 

 

2015 Subordinated Notes

 

$

5,087

 

 

$

(169

)

 

$

4,918

 

Debentures

 

 

146

 

 

 

—

 

 

 

146

 

Promissory Note

 

 

24,750

 

 

 

(115

)

 

 

24,635

 

Other

 

 

369

 

 

 

—

 

 

 

369

 

Total

 

$

30,352

 

 

$

(284

)

 

$

30,068

 

 

Debt instrument

 

Principal at
December 31, 2025

 

 

Unamortized
Debt Discount

 

 

Balance at
December 31, 2025

 

Current Portion:

 

 

 

 

 

 

 

 

 

2015 Subordinated Notes

 

$

10,500

 

 

$

(147

)

 

$

10,353

 

Zydus Promissory Note

 

 

10,000

 

 

 

-

 

 

 

10,000

 

Debentures

 

 

146

 

 

 

-

 

 

 

146

 

Promissory Note

 

 

24,750

 

 

 

(698

)

 

 

24,052

 

Other

 

 

104

 

 

 

—

 

 

 

104

 

Total

 

$

45,500

 

 

$

(845

)

 

$

44,655

 

 

As of June 30, 2026 and December 31, 2025, the principal amount of our outstanding debt balance was $30.4 million and $45.5 million, respectively.

 

Zydus Promissory Note

On January 15, 2026, in connection with the closing of the Zydus Asset Purchase Agreement, $7.0 million of the Zydus Promissory Note was forgiven and $3.0 million was repaid. In the six months ended June 30, 2026, we recognized a $7.0 million gain on debt forgiveness that is included in the gain recognized on the closing of the Zydus transactions. Refer to Note R for more detail.

Subordinated Notes

On January 15, 2026, in connection with the closing of the Zydus Asset Purchase Agreement, approximately $5.4 million of the 2015 Subordinated Notes were repaid and the lien on our former manufacturing facility in Berkeley, CA was released.

On June 29, 2026, we entered into an Amendment to Notes, Extension of Warrants and Sale of New Warrants with existing noteholders, pursuant to which we:

 

•
extended the maturity date of $5.09 million of senior subordinated promissory notes we previously issued to such noteholders in 2015 (the “2015 Notes”) by seven months from June 20, 2026 to January 18, 2027 (all other terms of the 2015 Notes, including the applicable interest rate will remain unchanged);
•
extended the expiration date of all 2022 A warrants to purchase shares of our common stock (the “A Warrants”) and 2022 B warrants to purchase shares of the our common stock (the “B Warrants”) held by such noteholders to purchase a total of 97,500 shares of the our common stock, each at an exercise price of $3.25, to June 25, 2031 (the “Amended A Warrants” and “Amended B Warrants”);
•
extended the expiration date of all 2025 C warrants to purchase shares of our common stock (the “C Warrants”) held by such noteholders to purchase a total of 67,500 shares of the our common stock previously issued in 2025 to June 25, 2031 (the “Amended C Warrants”)
•
issued to certain noteholders new warrants to purchase 56,525 shares of our common stock to expire June 25, 2031, and have an exercise price of $3.25 per share, (the “D Warrants” and, together with the Amended A Warrants, the Amended B Warrants, and the Amended C Warrants, the “New Warrants”);
•
committed to registering the New Warrants with the Securities and Exchange Commission within ninety (90) days after June 29, 2026;

 

This Amendment was accounted for as a debt modification. As part of the Amendment, we recorded debt discount of approximately $0.2 million, representing the fair value of the new and modified warrants. This amount is presented net of the liability in our condensed consolidated balance sheets and will be amortized to interest expense over the term of the 2015 Subordinated Notes.