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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Company’s Chief Executive Officer, the chief operating decision-maker (“CODM”). For accounting purposes, the CODM is making decisions regarding resource allocation and assessing performance based on consolidated net loss as if presented in the Company’s condensed consolidated financial statements. The Company views its operations and manages its business in two operating and reportable segments, which represent (i) the sale, promotion and commercialization of approved commercial products (the “Commercial Operations” segment), and (ii) research and development activities (the “Research and Development Operations” segment).
•The Commercial Operations segment consists of the Company’s commercial product portfolio.
•The Research and Development Operations segment consists of (i) activities related to developing a novel and proprietary class of NaV blockers that target the body’s peripheral nervous system; and (ii) supportive activities to expand the NITRICIL nitric oxide-based technology.
The Commercial Operations segment includes activities related to the commercialization of Zelsuvmi (berdazimer topical gel, 10.3%), the Company’s FDA-approved product for the treatment of molluscum contagiosum, and associated sales, marketing, distribution, and post-marketing activities. Net revenues attributed to this segment are derived from product sales in the United States following the July 1, 2025 Merger with LNHC. The Commercial Operations segment will also include activities related to the future commercialization of Xepi and Xeglyze.
The Research and Development Operations segment is primarily responsible for the NaV1.7 pain-modulation program and other preclinical candidates. This segment may also include activities associated with the Company’s license and collaboration arrangements, including the license with Sato covering development and commercialization of Zelsuvmi (SB206) in Japan.
Costs associated with product development are recorded within the Research and Development Operations segment. There are no significant inter-segment sales, and there is no inter-segment allocation of non-operating income, expenses, or income taxes. Mr. Plesha, the Company’s Chief Executive Officer, is CODM.
Segment revenue, net loss and reconciliations from segment revenue to segment net loss were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue
Commercial operations$15,420 $— $26,085 $— 
Research and Development operations183 — 424 — 
Total revenue$15,603 $— $26,509 $— 
Net loss
Commercial operations$(23,000)$— $(48,128)$— 
Research and Development operations(417)(3,449)(362)(5,417)
Net loss$(23,417)$(3,449)$(48,490)$(5,417)
For the Three Months Ended
June 30, 2026		For the Three Months Ended
 June 30, 2025
Commercial OperationsResearch and Development OperationsTotalCommercial OperationsResearch and Development OperationsTotal
Revenue$15,420 $183 $15,603 $— $— $— 
Less:
Cost of goods sold(3,610)— (3,610)— — — 
Selling, general and administrative(27,673)— (27,673)— (2,716)(2,716)
Research and development— (600)(600)— (515)(515)
Amortization of intangible assets(1,043)— (1,043)— — — 
Interest expense(2,389)— (2,389)— (218)(218)
Change in fair value of convertible debt(3,705)— (3,705)— — — 
Net loss$(23,000)$(417)$(23,417)$— $(3,449)$(3,449)
For the Six Months Ended
June 30, 2026		For the Six Months Ended
 June 30, 2025
Commercial OperationsResearch and Development OperationsTotalCommercial OperationsResearch and Development OperationsTotal
Revenue$26,085 $424 $26,509 $— $— $— 
Less:
Cost of goods sold(5,283)— (5,283)— — — 
Selling, general and administrative(48,777)— (48,777)— (4,356)(4,356)
Research and development— (786)(786)— (709)(709)
Amortization of intangible assets(2,074)— (2,074)— — — 
Interest expense(4,742)— (4,742)— (352)(352)
Change in fair value of convertible debt(13,337)— (13,337)— — — 
Net loss$(48,128)$(362)$(48,490)$— $(5,417)$(5,417)
Additional significant non-cash expenses are presented below.
For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
Depreciation$278 $— $747 $— 
Stock-based compensation2,760 394 4,668 850 
The amounts of depreciation and stock-based compensation are included within the segment expense captions, such as cost of goods sold and selling, general and administrative expenses in the table above, and there is no inter-segment allocation of these expenses.
Segment total assets were as follows:
As of June 30, 2026As of December 31, 2025
Assets
Commercial operations$136,950 $129,292 
Research and Development operations406 1,105 
Total assets$137,356 $130,397 
The net revenues attributed to the Commercial Operations segment are derived from the sale of the Company’s commercial product, and the net revenues attributed to the Research and Development Operations segment are derived from the arrangement with the Company’s licensing partner in Japan. Total assets by reporting segment are not reviewed by the CODM when evaluating the reporting segments’ performance, however, the Commercial Operations segment includes the acquired assets associated with the LNHC acquisition and changes in such assets, while the Research and Development Operations segment is comprised of the assets associated with the historical business of the Company.
Substantially all revenue was derived from product sales or from licensing agreements originating in the United States. All of the Company’s long-lived assets are maintained in the United States.