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SEGMENTS AND CONCENTRATIONS
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENTS AND CONCENTRATIONS SEGMENTS AND CONCENTRATIONS
The chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM does not review segment assets when assessing segment performance and deciding how to allocate resources. The Company reports on two reportable segments which are generally determined based on the decision-making structure of the Company and the grouping of similar products and services: Branded and Compounding.
•The Branded segment includes activities of the Company’s FDA-approved ophthalmology pharmaceutical products, including the out-licensing of rights to certain of our branded products.
•The Compounding segment represents activities in the Company’s ophthalmology-focused pharmaceutical compounding business.
The CODM evaluates segment performance and makes resource-allocation decisions primarily on the basis of segment contribution. Segment contribution is the internal measure of profitability that the CODM reviews on a regular basis to assess the operational performance of each segment, determine the appropriate level of sales and marketing investments, evaluate pricing decisions, and prioritize capital deployment among branded product initiatives and the compounding operations.
Segment contribution for the segments represents net revenues less cost of sales, certain general and administrative expenses, selling and marketing expenses, and research and development expenses. The Company does not evaluate the following items at the segment level:
•Selling, general and administrative expenses that result from shared infrastructure, including certain expenses associated with legal matters, public company costs (e.g. investor relations), Board of Directors and principal executive officers and other similar shared expenses.
•Operating expenses within selling, general and administrative expenses that result from the impact of corporate initiatives. Corporate initiatives primarily include integration, restructuring, acquisition and other shared costs.
•Other select revenues and operating expenses including research and development expenses, amortization, and asset sales and impairments, net as not all such information has been accounted for at the segment level, or such information has not been used by all segments.
Segment net revenues, segment operating expenses and segment contribution information consisted of the following:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
Branded CompoundingConsolidated BrandedCompoundingConsolidated
Product sales, net$56,015,000 $14,556,000 $70,571,000 $42,189,000 $21,468,000 $63,657,000 
Other revenues90,000 — 90,000 85,000 — 85,000 
Total revenues56,105,000 14,556,000 70,661,000 42,274,000 21,468,000 63,742,000 
Cost of sales13,434,000 6,864,000 20,298,000 8,734,000 7,496,000 16,230,000 
Gross profit42,671,000 7,692,000 50,363,000 33,540,000 13,972,000 47,512,000 
Operating expenses
Selling, general and administrative36,177,000 7,009,000 43,186,000 20,330,000 7,098,000 27,428,000 
Research and development7,674,000 339,000 8,013,000 2,390,000 442,000 2,832,000 
Segment contribution$(1,180,000)$344,000 (836,000)$10,820,000 $6,432,000 17,252,000 
Corporate10,112,000 5,807,000 
Research and development59,000 36,000 
Loss from operations$(11,007,000)$11,409,000 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Branded CompoundingConsolidated BrandedCompoundingConsolidated
Product sales, net$86,646,000 $28,055,000 $114,701,000 $69,883,000 $41,519,000 $111,402,000 
Other revenues163,000 — 163,000 171,000 — 171,000 
Total revenues86,809,000 28,055,000 114,864,000 70,054,000 41,519,000 111,573,000 
Cost of sales24,389,000 13,067,000 37,456,000 16,915,000 14,839,000 31,754,000 
Gross profit62,420,000 14,988,000 77,408,000 53,139,000 26,680,000 79,819,000 
Operating expenses
Selling, general and administrative62,075,000 14,050,000 76,125,000 41,012,000 14,620,000 55,632,000 
Research and development13,295,000 549,000 13,844,000 4,383,000 666,000 5,049,000 
Segment contribution$(12,950,000)$389,000 (12,561,000)$7,744,000 $11,394,000 19,138,000 
Corporate20,403,000 18,116,000 
Research and development123,000 845,000 
Loss from operations$(33,087,000)$177,000 
Substantially all revenue is attributable to the U.S. All long-lived assets at June 30, 2026 and December 31, 2025 were located in the U.S.
Revenues by segment are further described as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
IHEEZO$15,619,000 $18,336,000 $17,535,000 $23,558,000 
VEVYE29,387,000 18,641,000 50,335,000 40,156,000 
Other branded products11,009,000 5,212,000 18,776,000 6,169,000 
Other revenues90,000 85,000 163,000 171,000 
Branded revenue, net56,105,000 42,274,000 86,809,000 70,054,000 
Compounding revenue, net14,556,000 21,468,000 28,055,000 41,519,000 
Total revenues, net$70,661,000 $63,742,000 $114,864,000 $111,573,000 
Other than IHEEZO and VEVYE for the three and six months ended June 30, 2026 and 2025, no other products accounted for more than 10% of total revenues for the periods presented.
Customer and Supplier Concentrations
Substantially all of the Company’s Branded sales are made to third-party distributors who sell the products to pharmacies and to the end-users. There were three customers who comprised more than 10% of the Company’s Branded revenues for the three and six months ended June 30, 2026 and two customers who comprised more than 10% of the Company’s Branded revenues for the three and six months ended June 30, 2025. There were no customers who comprised more than 10% of Compounding revenues for either the three and six months ended June 30, 2026 or 2025. As of June 30, 2026, accounts receivable from three customers accounted for 91% of total consolidated accounts receivable. As of December 31, 2025, accounts receivable from three customers accounted for 90% of total consolidated accounts receivable.
The Company received its active pharmaceutical ingredients from three main suppliers during each of the three and six months ended June 30, 2026 and 2025. These suppliers collectively accounted for 61% and 54% of manufacturing supplies purchases during the three and six months ended June 30, 2026, respectively, and 76% and 72% during the three and six months ended June 30, 2025, respectively.