TherapeuticsMD Inc
For the period ended Jun 30, 2024. Filed Aug 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 12, 2024
TXMD$1.74+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001213900-24-041738
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001213900-24-067771
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 78 previous paragraphs and 91 current paragraphs.
62 unchanged; 16 reworded; 3 added; 0 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 4 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Operating expenses. Total operating expenses for the second quarter of 2024 were $2,674 thousand, a decrease of $235 thousand, or 8.1%, compared to the second quarter of 2023. This decrease was due to the further optimization of our business through the reduction of costs following our transition to a royalty-based business, and is partially off-set by the patent impairment recognized in the second quarter of 2024.
Current report
Other income, net. During the first six months of 2024, we had other income of $1,723 thousand compared to other income of $415 thousand in the first six months of 2023. The difference is mainly due to a $1,250 thousand one-time consideration the Company received from its sublessee on its early termination on the sublease, which was recognized in the second quarter of 2024. Royalties reported as other income for intellectual property licensed by us totaled approximately $404 thousand in the first six months of 2024.
Current report
*Financing Activities from continuing operations.*For the first six months of 2024, there was no cash received from financing activities, compared to net cash received from financing activities of $1,150 thousand for the first six months of 2023, reflecting the sale of common stock during the first six months of 2023.
Reworded paragraphs (16)
Previous wording
We recorded $313 thousand in license revenue for the first quarter of 2024, primarily from the Mayne License Agreement, compared to$416 thousand in license revenue from the Mayne License Agreement for the first quarter of 2023. The decrease is primarily attributable to changes in sales of licensed products.
Current wording
We recorded $234 thousand in license revenue for the second quarter of 2024, primarily from the Mayne License Agreement, a decrease of $203 thousand, or 46.5%, compared to $437 thousand in license revenue for the second quarter of 2023. The decrease is primarily attributable to changes in sales of licensed products.
Previous wording
*Selling, general and administrative.*Selling, general and administrative expenses were $1,322 thousand for the first quarter of 2024, a decrease of $1,734 thousand, or 56.7%, compared to the first quarter of 2023. This decrease was due to the increased efficiencies realized following our transition to a royalty-based business.
Current wording
*Selling, general and administrative.*Selling, general and administrative expenses were $1,233 thousand for the second quarter of 2024, a decrease of $1,548 thousand, or 55.7%, compared to the second quarter of 2023. This decrease was due to the increased efficiencies realized following our transition to a royalty-based business.
Previous wording
*Depreciation & amortization.*Depreciation and amortization expense was $133 thousand for the first quarter of 2024, an increase of $106 thousand, or 392.6%, compared to the first quarter of 2023. In 2024, this balance is entirely comprised of amortization of license rights and intangible assets.
Current wording
*Depreciation & amortization.*Depreciation and amortization expense was $180 thousand for the second quarter of 2024, an increase of $52 thousand, or 40.6%, compared to the second quarter of 2023. In the 2024 period, this balance is entirely comprised of amortization of license rights and intangible assets.
Previous wording
Loss from operations. In the first quarter of 2024, we had a loss from operations of $1,142 thousand, as compared to a loss from operations of $2,667 thousand for the first quarter of 2023. This change reflects the streamlining of our business and increased efficiencies realized as a royalty-based business.
Current wording
Loss from operations. In the second quarter of 2024, we had a loss from operations of $2,440 thousand, as compared to a loss from operations of $2,472 thousand for the second quarter of 2023. This change reflects the streamlining of our business and increased efficiencies realized as a royalty-based business.
Previous wording
Other income (expense), net. During the first quarter of 2024, we had other income of $333 thousand compared to other income of $357 thousand in the first quarter of 2023. This change reflects our transition to a royalty-based business. Royalties reported as other income for intellectual property licensed by us totaled approximately $295 thousand in the first quarter of 2024.
Current wording
Other income (expense), net. During the second quarter of 2024, we had other income of $1,390 thousand compared to other income of $58 thousand in the second quarter of 2023. The difference is mainly due to a $1,250 thousand one-time consideration the Company received from its sublessee on its early termination on the sublease, which was recognized in the second quarter of 2024. Royalties reported as other income for intellectual property licensed by us totaled approximately $108 thousand in the second quarter of 2024.
Previous wording
Provision for income taxes. During the first quarter of 2024 and 2023, we recorded no provision for income taxes for continuing operations.
Current wording
Provision for income taxes. During the second quarter of 2024 and 2023, we recorded no provision for income taxes for continuing operations.
Previous wording
Net loss from continuing operations. For the first quarter of 2024, we had a net loss of $809 thousand, or $0.07 per basic and diluted common share, compared to a net loss of $2,310 thousand, or $0.24 per basic and diluted common share, for the first quarter of 2023.
Current wording
Net loss from continuing operations. For the second quarter of 2024, we had a net loss of $1,050 thousand, or $0.09 per basic and diluted common share, compared to a net loss of $2,414 thousand, or $0.24 per basic and diluted common share, for the second quarter of 2023.
Previous wording
Operating expenses. Total operating expenses for the first quarter of 2024 were $1,455 thousand, a decrease of $1,628 thousand, or 52.8%, compared to the first quarter of 2023. This decrease was due to the down-sizing of our business following our transition to a royalty-based business.
Current wording
Operating expenses. Total operating expenses for the first six months of 2024 were $4,129 thousand, a decrease of $1,863 thousand, or 31.1%, compared to the first six months of 2023. This decrease was due to the further optimization of our business through the reduction of costs following our transition to a royalty-based business , and is partially off-set by the patent impairment recognized in the second quarter of 2024.
Previous wording
Discontinued Operations - Net income from discontinued operations was $75 thousand for the first quarter of 2024, compared to a net loss from discontinued operations of $1,293 thousand for the first quarter of 2023. This change reflects the continued wind-down of our legacy business.
Current wording
Discontinued Operations - Net income from discontinued operations was $35 thousand for the first six months of 2024, compared to a net loss from discontinued operations of $1,293 thousand for the first six months of 2023. This change reflects the continued wind-down of our legacy business.
Previous wording
Our primary use of cash is to fund our continued operations. We have funded our operations primarily through public offerings of our common stock and private placements of equity and debt securities, the divestiture of our former subsidiary vitaCare, and the transactions with Mayne Pharma. As of March 31, 2024, we had cash and cash equivalents totaling $4,338 thousand. We maintain cash at financial institutions that at times may exceed the Federal Deposit Insurance Corporation insured limits of $250 thousand per bank. We have never experienced any losses related to these funds.
Current wording
Our primary use of cash is to fund our continued operations. We have funded our operations primarily through public offerings of our common stock and private placements of equity and debt securities, the divestiture of our former subsidiary vitaCare, and the transactions with Mayne Pharma. As of June 30, 2024, we had cash and cash equivalents totaling $5,232 thousand. We maintain cash at financial institutions that at times may exceed the Federal Deposit Insurance Corporation insured limits of $250 thousand per bank. We have never experienced any losses related to these funds.
Previous wording
On May 1, 2023, we entered into the Subscription Agreement with Rubric, pursuant to which we agreed to sell to Rubric, or one or more of its affiliates, up to an aggregate of 5,000,000 shares of Common Stock, from time to time during the term of the Subscription Agreement in separate draw downs at our election, at a purchase price of the five-day volume-weighted average price of our common stock at the time of the sale of such shares, at an aggregate purchase price of up to $5,000,000 (collectively, the “Private Placement”).
Current wording
On May 1, 2023, we entered into the Subscription Agreement with Rubric, pursuant to which we agreed to sell to Rubric, or one or more of its affiliates, up to an aggregate of 5,000,000 shares of Common Stock, from time to time during the term of the Subscription Agreement in separate drawdowns at our election, at a purchase price of the five-day volume-weighted average price of our common stock at the time of the sale of such shares, at an aggregate purchase price of up to $5,000,000 (collectively, the “Private Placement”).
Previous wording
Operating Activities from continuing operations. For the first three months of 2024, net cash used in operating activities was $229 thousand, compared to net cash used in operating activities of $8,701 thousand for the first three months of 2023. This decrease of $8,472 thousand or 97.4%, was primarily due to a $1,501 thousand decrease in our net loss from continuing operations following our transition from a manufacturing and commercialization business to a royalty-based business combined with the pay-down of current liabilities in the prior-year period.
Current wording
Operating Activities from continuing operations. For the first six months of 2024, net cash provided by operating activities was $1,224 thousand, compared to net cash used in operating activities of $12,093 thousand for the first six months of 2023. This change of $13,317 thousand or 110.1%, was primarily due to a $2,865 thousand decrease in our net loss from continuing operations following our transition from a manufacturing and commercialization business to a royalty-based business combined with the pay-down of current liabilities in the prior-year period.
Previous wording
Net cash provided by (used in) discontinued operations. Net cash provided by operating activities from discontinued operations for the first three months of 2024 was $240 thousand as compared to net cash used in operating activities of $23,368 thousand for the first three months of 2023. This change relates primarily to expenses incurred and the payment of current liabilities associated with our transition from a manufacturing and commercialization business to a royalty-based business.
Current wording
Net cash used in discontinued operations. Net cash used in operating activities from discontinued operations for the first six months of 2024 was $319 thousand as compared to net cash used in operating activities of $24,645 thousand for the first six months of 2023. This change relates primarily to a decrease in expenses incurred and the payment of current liabilities associated with our transition from a manufacturing and commercialization business to a royalty-based business.
Previous wording
Receivable from Mayne. On December 30, 2022, Mayne Pharma acquired our accounts receivable balance of approximately $29.3 million which is subject to certain working capital adjustments. As of March 31, 2024, we had a royalty receivable of $3,113 thousand relating to the short-term portion of receivable from Mayne Pharma and $17,855 thousand relating to the long-term portion of royalty receivable which includes royalties recognized from the Minimum Annual Royalty. See Note 1 Business, basis of presentation, new accounting standards and summary of significant accounting policies (Revenue Recognition) to the consolidated financial statements included inour 2023 10-K Report.* *
Current wording
Receivable from Mayne. On December 30, 2022, Mayne Pharma acquired our accounts receivable balance of approximately $29.3 million which is subject to certain working capital adjustments. As of June 30, 2024, we had a royalty receivable of $2,778 thousand relating to the short-term portion of receivable from Mayne Pharma and $17,224 thousand relating to the long-term portion of royalty receivable which includes royalties recognized from the Minimum Annual Royalty. See Note 1 Business, basis of presentation, new accounting standards and summary of significant accounting policies (Revenue Recognition) to the consolidated financial statements included in our 2023 10-K Report.* *
Previous wording
In the ordinary course of business, we enter into agreements with third parties that include indemnification provisions, which, in our judgment, are normal and customary for companies in our industry sector. Pursuant to these agreements, we generally agree to indemnify, hold harmless, and reimburse indemnified parties for losses suffered or omitted by us. The maximum potential amount of future payments we could be required to make under these indemnification provisions is sometimes unlimited. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the estimated fair value of liabilities relating to these provisions is minimal. Accordingly, we had no liabilities recorded for these provisions as of March 31, 2024 and December 31, 2023.
Current wording
In the ordinary course of business, we enter into agreements with third parties that include indemnification provisions, which, in our judgment, are normal and customary for companies in our industry sector. Pursuant to these agreements, we agree to indemnify, hold harmless, and reimburse indemnified parties for losses suffered or omitted by us. The maximum potential amount of future payments we could be required to make under these indemnification provisions is sometimes unlimited. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the estimated fair value of liabilities relating to these provisions is minimal. Accordingly, we had no liabilities recorded for these provisions as of June 30, 2024 and December 31, 2023.
Previous wording
Management’s discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements included elsewhere in this 10-Q Report, which has been prepared in accordance with U.S. GAAP. We make estimates and assumptions that affect the reported amounts on our condensed consolidated financial statements and accompanying notes as of the date of the condensed consolidated financial statements. The critical accounting policies and estimates used are disclosed in Item 7 – Management’s discussion and analysis of financial condition and results of operations – Critical accounting policies and estimates in our 2023 10-K Report.
Current wording
Management’s discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements included elsewhere in this 10-Q Report, which has been prepared in accordance with U.S. GAAP and SEC rules and regulations related to interim financial reporting. We make estimates and assumptions that affect the reported amounts on our condensed consolidated financial statements and accompanying notes as of the date of the condensed consolidated financial statements. The critical accounting policies and estimates used are disclosed in Item 7 – Management’s discussion and analysis of financial condition and results of operations – Critical accounting policies and estimates in our 2023 10-K Report.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Discontinued Operations – Net loss from discontinued operations was $40 thousand for the second quarter of 2024, compared to a net loss from discontinued operations of $0 thousand for the second quarter of 2023.
Current report — wording carried from elsewhere
Six months ended June 30, 2024 compared with six months ended June 30, 2023
Current report — wording carried from elsewhere
The following table sets forth the results of our operations (in thousands):
Current report — wording carried from elsewhere
Revenue. As part of our transformation and the Mayne License Agreement, historical results of commercial operations have been reflected as discontinued operations in the condensed consolidated financial statements for all periods presented.
Current report — wording carried from elsewhere
We recorded $547 thousand in license revenue for the first six months of 2024, primarily from the Mayne License Agreement, a decrease of $306 thousand, or 35.9%, compared to $853 thousand in license revenue for the first six months of 2023. The decrease is primarily attributable to changes in sales of licensed products.
Current report — wording carried from elsewhere
*Selling, general and administrative.*Selling, general and administrative expenses were $2,555 thousand for the first six months of 2024, a decrease of $3,282 thousand, or 56.2%, compared to the first six months of 2023. This decrease was due to the increased efficiencies realized following our transition to a royalty-based business.
Current report — wording carried from elsewhere
*Depreciation & amortization.*Depreciation and amortization expense was $313 thousand for the first six months of 2024, an increase of $158 thousand, or 101.9%, compared to the first six months of 2023. In the 2024 period, this balance is entirely comprised of amortization of license rights and intangible assets.
Current report — wording carried from elsewhere
Loss from operations. In the first six months of 2024, we had a loss from operations of $3,582 thousand, as compared to a loss from operations of $5,139 thousand for the first six months of 2023. This change reflects the streamlining of our business and increased efficiencies realized as a royalty-based business.
Current report — wording carried from elsewhere
Provision for income taxes. During the first six months of 2024 and 2023, we recorded no provision for income taxes for continuing operations.
Current report — wording carried from elsewhere
Net loss from continuing operations. For the first six months of 2024, we had a net loss of $1,859 thousand, or $0.16 per basic and diluted common share, compared to a net loss of $4,724 thousand, or $0.47 per basic and diluted common share, for the first six months of 2023.