v3.26.1
BALANCE SHEET ACCOUNT DETAILS
 6 Months Ended
Jun. 30, 2026
Balance Sheet Related Disclosures [Abstract]  
BALANCE SHEET ACCOUNT DETAILS BALANCE SHEET ACCOUNT DETAILS
Inventory consisted of the following:
June 30, 2026December 31, 2025
Raw materials$668 $436 
Work-in-process11,810 16,556 
Finished goods8,994 6,582 
Total inventory$21,472 $23,574 
Prior to obtaining initial regulatory approval for Zelsuvmi in January 2024, inventory costs related to the production of pre-launch inventory were expensed as research and development costs. Subsequent to January 5, 2024, the date of the FDA’s approval of Zelsuvmi, inventory costs were capitalized by LNHC. As part of the Merger, certain inventoried items were revalued subject to ASC 805. See Note 3 — “Acquisition of LNHC, Inc.” for additional detail.
Prepaid expenses and other current assets consisted of the following:
June 30, 2026December 31, 2025
Prescription Drug User Fee Act (PDUFA) fees$221 $442 
Clinical development activities318 — 
Drug product manufacturing subcontractor393 — 
Insurance275 766 
Deposits for meetings and conferences584 80 
Commercial data platforms454 364 
Patient assistance platforms— 75 
Financial reporting platforms106 98 
Deferred offering costs— 711 
Other491 419 
Total prepaid expenses and other current assets$2,842 $2,955 
Property and equipment consisted of the following:
June 30, 2026December 31, 2025
Manufacturing and laboratory equipment$1,851 $1,778 
Software1,083 1,083 
Furniture and fixtures69 70 
Computer equipment244 111 
Leasehold improvements5,988 5,967 
Construction-in-progress1,524 1,509 
Property and equipment, cost10,759 10,518 
Less: Accumulated depreciation and amortization(1,878)(932)
Total property and equipment, net$8,881 $9,586 
The Company’s depreciation expense was $278 and $747 for the three and six months ended June 30, 2026, respectively.
Goodwill and other identifiable intangible assets consisted of the following:
June 30, 2026December 31, 2025
Indefinite-lived intangible assets
Goodwill$24,681 $24,681 
Definite-lived intangible assets
Developed technology32,200 32,200 
Amended Sato license715 715 
Xepi6,080 6,080 
Xeglyze1,817 1,817 
Website development214 214 
Less: accumulated amortization(3,629)(1,556)
Total definite-lived intangible assets$37,397 $39,470 
Accrued expenses consisted of the following:
June 30, 2026December 31, 2025
Compensation $3,085 $3,475 
Drug product manufacturing subcontractor307 292 
Commercial, marketing and sales218 818 
Insurance— 265 
Accrued interest— 234 
Milestones and royalties payable14,334 7,819 
Accrued gross-to-net adjustments2,364 1,778 
Other437 683 
Total accrued expenses$20,745 $15,364 
The Company has reported on its condensed consolidated balance sheets within accrued expenses two milestone payments due to Ligand totaling $10,000 related to Zelsuvmi. As discussed in Note 9 — “License and Other Agreements,” Ligand entered into subordination agreement related to the Venture Loan and Security Agreement which prohibits the Company from making milestone payments on the Zelsuvmi License, until certain defined criteria are achieved.
Other liabilities and other long-term liabilities consisted of the following:
June 30, 2026December 31, 2025
Reedy Creek Purchase Agreement$1,527 $1,963 
Total other liabilities$1,527 $1,963 
Zelsuvmi Royalty Agreement$1,281 $1,540 
Xepi Royalty Agreement84 226 
Sato Payments95 113 
Total other liabilities - related party$1,460 $1,879 
Reedy Creek Purchase Agreement$20,406 $18,908 
Total other long-term liabilities$20,406 $18,908 
Zelsuvmi Royalty Agreement$9,304 $8,233 
Xepi Royalty Agreement2,184 1,928 
Sato Payments1,051 981 
Accrued interest on Convertible Notes396 — 
Total other long-term liabilities - related party$12,935 $11,142 
See Note 8 — “Reedy Creek Liability” and Note 9 — “License and Other Agreements” for additional detail regarding the carrying value of certain balances reflected within the accompanying condensed consolidated financial statements.