AYTU BIOPHARMA, INC
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
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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.
Sep 30, 2025 · Filed Nov 13, 2025
AYTU$1.83+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0001437749-25-016833
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001437749-25-034825
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 69 previous paragraphs and 72 current paragraphs.
25 unchanged; 28 reworded; 18 added; 14 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 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 (18)
Current report
EXXUA has been extensively studied in over 5,000 patients and represents a new class of therapeutics to compete in the over $22 billion United States prescription MDD market. We believe it can become a very important treatment option for the estimated 21 million Americans affected by MDD. Over 340 million antidepressant prescriptions were written in 2024 in the United States, yet significant unmet needs remain considering the unacceptable side effects associated with current therapeutics. Importantly, we believe that EXXUA is the only antidepressant acting on serotonin receptors that does not carry a label warning about the risk of sexual dysfunction. The mechanism of the antidepressant effect of EXXUA is believed to be related to its modulation of serotonin activity and, specifically, its exclusive and strong binding affinity for 5HT1a receptors, which are key regulators of mood and emotion. EXXUA is not a SSRI and has no reuptake inhibition activity. EXXUA also exhibits no significant adverse effects on weight, blood pressure, heart rate or liver function. It is our expectation that EXXUA has the potential to serve as a major growth catalyst for us, and we anticipate launching EXXUA in the second quarter of fiscal 2026 as a centerpiece of our commercial efforts.
Current report
In addition, we will continue to focus on commercializing innovative prescription products that address other CNS conditions, including ADHD. We are focusing our efforts on accelerating the growth of our commercial business and achieving positive operating cash flows. To achieve these goals, we indefinitely suspended active development of our clinical development programs and have wound down and divested unprofitable operations. In the first quarter of fiscal 2025 we completed the previously announced wind down and divestiture of our Consumer Health business and now operate our business as a single operating and reporting segment. The accounting requirements for reporting the Consumer Health business as a discontinued operation were met when the wind down and divestiture was completed on July 31, 2024. Accordingly, our unaudited consolidated financial statements for all periods presented reflect the Consumer Health business as a discontinued operation.
Current report
Our business from continuing operations is focused on the upcoming launch of EXXUA and on our current prescription pharmaceutical products sold primarily through third party wholesalers, distributors and pharmacies and which primarily consists of two product portfolios. The first, the ADHD Portfolio, consists of products for the treatment of ADHD and the second, the Pediatric Portfolio, consists of a line of legacy products. We contract with CMOs for the manufacture and testing of all of our products.
Current report
Net Revenue by Product Portfolio
Current report
Net revenue disaggregated by product portfolios for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, is as follows:
Current report
Gross profit and gross profit percentage for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, is as follows:
Current report
During the three months ended September 30, 2025, gross profit decreased by $2.8 million, or 23% compared to the three months ended September 30, 2024. Gross profit percentage was 66% for the three months ended September 30, 2025, compared to 72% for the three months ended September 30, 2024. The decrease in gross profit and gross profit percentage is primarily related to a $3.3 million one-time increase in our ADHD Portfolio net revenue in the first quarter of fiscal 2025 related to a change is estimated variable consideration that resulted from negotiations with a vendor that resulted in a reduction to the liability purportedly owed the vendor.
Current report
During the three months ended September 30, 2025, there was no research and development expense compared to $0.4 million for the same period ended September 30, 2024, primarily driven by our previously announced suspension of our development programs to focus on our commercial operations resulting in a decrease in research and development spending.
Current report
During the three months ended September 30, 2025, interest expense decreased by $0.5 million, or 48% compared to the same period ended September 30, 2024, primarily due to the paydown of our fixed payment arrangements.
Current report
Derivative Warrant Liabilities Gain
Current report
Income Tax Expense
Current report
For the three months ended September 30, 2025, and 2024, there was zero and $0.4 million of income tax expense from continuing operations, which was an effective tax rate of zero and negative 27.0%, respectively. This income tax expense was primarily driven by Section 382 limitation of the Internal Revenue Code of 1986, as amended (the “IRC”) on pre-TCJA and post-TCJA net operating loss (“NOL”) utilization, coupled with existing valuation allowances.
Current report
Equity Financing
Current report
We have engaged in several different types of equity financings throughout our history. Most recently in June 2025, we raised gross proceeds of $16.6 million from the issuance of (i) 2,806,688 shares of our common stock, at a public offering price of $1.50 and 8,233,332 prefunded warrants at a public offering price of $1.4999 to purchase 8,233,332 shares of our common stock at an exercise price of $0.0001 per share. We received $14.8 million in proceeds net of underwriting commissions and offering expenses and intend to use the net proceeds from the offering for working capital, general corporate purposes and to enable us to exclusively commercialize EXXUA.
Current report
In June 2024, the June 2023 Tranche B Warrants to purchase 2,173,912 shares of our common stock at an exercise price of $1.59 were exercised, generating proceeds of $3.5 million. The June Tranche B Warrants were converted into 367,478 shares of our common stock and 1,806,434 prefunded warrants to purchase shares of our common stock with an exercise price of $0.0001 per share. We used a portion of these proceeds as part of a $15.0 million term loan repayment made in June of 2024. For further information on our equity financings and related warrants outstanding, please refer toNote 14 - Stockholders’* Equity* andNote 16 - Warrants in Part I, Item 1 of this Form 10-Q.
Current report
Net cash provided by financing activities of $2.3 million during the three months ended September 30, 2025, was primarily from $5.8 million of net proceeds from our Eclipse Revolving Loan, partially offset by $3.1 million of payments for fixed payment arrangements and $0.5 million of payments made against the principal balance of our Eclipse Term Loan.
Current report
In May 2022, we entered into an agreement with Tris to terminate the License, Development, Manufacturing and Supply Agreement dated November 2, 2018, related to Tuzistra (the “Tuzistra License Agreement”). Pursuant to such termination we accrued a settlement liability, which was paid in full during the first quarter of fiscal 2026.
Current report
In connection with our suspension of active development of AR101 (enzastaurin) (“AR101”), we engaged in negotiations with EnzCo, LLC (“EnzCo”) and Rumpus VEDS LLC, (“Rumpus VEDS”), Rumpus Therapeutics LLC, (“Rumpus Therapeutics”) and Rumpus Vascular LLC, (“Rumpus Vascular” and, together with Rumpus VEDS and Rumpus Therapeutics, “Rumpus”) for the repurchase of AR101. In the first quarter of fiscal 2026, we reached terms with Rumpus and EnzCo whereby for mutual consideration and releases, we transferred all of ours and Rumpus’ rights, title and interest in AR101 to EnzCo, which extinguished and terminated all of our obligations and Rumpus’ obligations under the April 21, 2021, asset purchase agreement by and between us and Rumpus (the “Rumpus Asset Purchase Agreement”). There is no other relationship between us, EnzCo or Rumpus other than as contracting parties to terminate the Rumpus Asset Purchase Agreement, and there are no penalties or remaining obligations for us for terminating the Rumpus Asset Purchase Agreement.
Removed paragraphs (14)
Previous report
In July 2024, we completed the wind down and divestiture of our Consumer Health business (seePart I, Item 1, Note 20 – Discontinued Operationsin this Form 10-Q for further detail) and now operate our business as a single operating and reporting segment, which is focused on our prescription pharmaceutical products sold primarily through third party wholesalers and pharmacies and which primarily consists of two product portfolios, the ADHD Portfolio and the Pediatric Portfolio. The ADHD Portfolio consists of products for the treatment of ADHD, primarily Adzenys (amphetamine), an extended-release orally disintegrating tablet and Cotempla (methylphenidate), an extended-release orally disintegrating tablet. The Pediatric Portfolio consists primarily of Karbinal (carbinoxamine maleate extended-release oral suspension), an extended-release first-generation antihistamine suspension containing carbinoxamine indicated to treat numerous allergic conditions, and Poly-Vi-Flor and Tri-Vi-Flor, two complementary prescription fluoride-based supplement product lines containing combinations of fluoride and vitamins in various formulations for infants and children with fluoride deficiency. During the fourth quarter of fiscal 2024, we successfully completed the transition of all manufacturing of our ADHD products to a United States-based third-party contract manufacturer to improve the profitability of these products.
Previous report
Net Revenue
Previous report
Net revenue by portfolio for the three and nine months ended March 31, 2025, compared to the three and nine months ended March 31, 2024, is as follows:
Previous report
During the three months ended March 31, 2025, net revenue increased by $4.4 million, or 32%, compared to the same period ended March 31, 2024, primarily due to an increase in gross product revenue as well as overall improvements in savings offers and distributor fees which are certain expenses that reduce gross revenue to determine net revenue (known as “Gross to Net” adjustments).
Previous report
During the three and nine months ended March 31, 2025, gross profit increased by $2.4 million, or 24% and decreased by $2.4 million, or 6%, compared to the same periods ended March 31, 2024, respectively. Gross profit percentage was 69% for both the three and nine months ended March 31, 2025, compared to 74% and 75% for the same periods ended March 31, 2024, respectively. The decrease in gross profit percentage is primarily related to increased cost of sales for our ADHD Portfolio inventory as we sell through self-manufactured inventory burdened with certain fixed costs associated with its manufacture, which were capitalized into inventory costs in prior periods and is expected to normalize in the coming quarters as we finish selling through our self-manufactured inventory.
Previous report
During the three and nine months ended March 31, 2025, research and development expense decreased by $0.4 million, or 73% and $0.6 million, or 36% compared to the same period ended March 31, 2024. Our research and development costs are primarily associated with support for our commercialized products and costs associated with maintaining our intellectual property on our AR101 asset, for which we have indefinitely suspended clinical development. We did not have significant costs related to these activities during the third quarter of fiscal 2025, which was the primary reason for the decrease in research and development expense.
Previous report
During the three and nine months ended March 31, 2025, interest expense decreased by $0.4 million, or 28% and $0.8 million, or 22%, compared to the same periods ended March 31, 2024, primarily due to the extinguishment of our $15.0 million term loan while entering into the $13.0 million Eclipse Term Loan on more favorable terms during the fourth quarter of fiscal 2024 and the gradual paydown of the outstanding principal balance throughout the year as well as reductions in our fixed payment arrangement balance during the period.
Previous report
Derivative Warrant Liabilities Gain (Loss)
Previous report
Income Tax Benefit (Expense)
Previous report
For income (loss) from continuing operations we recorded an income tax benefit of $0.1 million, which represented an effective tax rate of negative 3.2% and income tax expense of $0.5 million, which represented an effective tax rate of negative 29.5%, for the three months ended March 31, 2025, and 2024, respectively. For income (loss) from continuing operations we recorded an income tax expense of zero and income tax expense of $1.3 million, which represented an effective tax rate of zero and negative 16.6% for the nine months ended March 31, 2025, and 2024, respectively. These effective tax rates were primarily driven by the limitations on losses as a result of Section 382 of the IRC changes in ownership coupled with existing valuation allowances, the divestiture of our Consumer Health business that occurred during the first quarter of fiscal 2025 and changes to our fiscal 2025 projections, which resulted in an income tax benefit for the current quarter that reduced income tax expense for fiscal 2025 to zero.
Previous report
In June 2024, we and certain of our subsidiaries entered into the Eclipse Amendment No. 5, with the Eclipse Lender. Under the Eclipse Agreement No. 5, we have two loan agreements, the Eclipse Term Loan and the Eclipse Revolving Loan.
Previous report
Net Cash Provided By (Used In) Financing Activities
Previous report
In May 2022, we entered into the Tuzistra License Agreement. Pursuant to such termination the Company accrued a settlement liability, which as of March 31, 2025, had a remaining balance of $4.3 million accrued in other current liabilities on the consolidated balance sheet payable to Tris, with a provision that allows the Company to pay interest on any principal amounts due but remaining unpaid past July 2024.
Previous report
In connection with our acquisition of the assets from Rumpus VEDS, LLC, Rumpus Therapeutics, LLC, Rumpus Vascular, LLC (collectively, “Rumpus”), and only if we resume and ultimately complete clinical development of AR101 and gain regulatory clearances to commercialize the product in multiple markets around the world, we may be required to pay up to $67.5 million in regulatory and commercial-based earn-out payments to Rumpus, which are primarily paid against commercial milestone achievements. Under the licensing agreement with Denovo Biopharma LLC (“Denovo”), we made a payment of $0.6 million for a license fee in April 2022. In addition, upon the achievement of regulatory and commercial milestones, we may be required to pay up to $101.7 million. Under the licensing agreement with Johns Hopkins University (“JHU”), upon achievement of regulatory and commercial milestone, we may be required to pay up to $1.6 million to JHU. In fiscal 2022, two milestones payable to Rumpus were achieved totaling $4.0 million, which were paid in 109,447 shares of common stock and $2.6 million in cash. We also assumed the responsibility for royalties of 3.0% of net revenue from the product, with a minimum of $20,000 per year, and upon the achievement of certain regulatory and commercial milestones, up to $1.6 million. With clinical development currently suspended, only if and when we resume and ultimately complete clinical development of AR101, are substantially all milestone payments payable to these parties.
Reworded paragraphs (28)
Previous wording
The purpose of the Management’s Discussion and Analysis (the “MD&A”) is to present information that management believes is relevant to an assessment and understanding of our results of operations for the three and nine months ended March 31, 2025, our cash flows for the nine months ended March 31, 2025, and our financial condition as of March 31, 2025. The MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited consolidated financial statements and notes thereto.
Current wording
The purpose of the Management’s Discussion and Analysis (the “MD&A”) is to present information that management believes is relevant to an assessment and understanding of our results of operations and cash flows for the three months ended September 30, 2025, and our financial condition as of September 30, 2025. The MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited consolidated financial statements and notes thereto.
Previous wording
We are a pharmaceutical company focused on commercializing novel therapeutics. Our strategy is to become a leading pharmaceutical company that improves the lives of patients. We use a focused approach of in-licensing, acquiring, developing, and commercializing novel prescription therapeutics in order to continue building our portfolio of revenue-generating products and leveraging our commercial team’s expertise to build leading brands within large therapeutic markets. Our primary focus is on commercializing innovative prescription products that address conditions frequently developed or diagnosed in childhood, including ADHD. We are focusing our efforts on accelerating the growth of our commercial business and achieving positive operating cash flows. To achieve these goals, we indefinitely suspended active development of our clinical development programs and have wound down and divested unprofitable operations.
Current wording
We are a pharmaceutical company focused on advancing innovative medicines for complex CNS system diseases to improve the quality of life for patients. Our strategy is to become a leading pharmaceutical company that improves the lives of patients. We use a focused approach of in-licensing, acquiring, developing and commercializing novel prescription therapeutics in order to continue building our portfolio of revenue-generating products and leveraging our commercial team’s expertise to build leading brands within large therapeutic markets. In June 2025, we entered into the Commercialization Agreement with Fabre-Kramer to commercialize EXXUA in the United States. Gepirone is a new chemical entity, and we believe EXXUA to be a novel first-in-class selective serotonin 5HT1a receptor agonist approved by the FDA for the treatment of MDD in adults.
Previous wording
In July 2023, we entered into an exclusive collaboration, distribution and supply agreement with Medomie, a privately owned pharmaceutical company, for Medomie to commercialize Adzenys and Cotempla in Israel and the Palestinian Authority. In September 2024, we entered into an exclusive collaboration, distribution and supply agreement with Lupin, a subsidiary of global pharmaceutical company Lupin Limited, for Lupin to commercialize Adzenys and Cotempla in Canada. We will supply Adzenys and Cotempla to Medomie and Lupin based on forecasts and provide various product commercialization resources. Medomie and Lupin are responsible for seeking local regulatory approvals and marketing authorizations for both Adzenys and Cotempla, which is expected to occur over the next 24 months. The agreements with Medomie and Lupin represent our first and second international commercial agreements for Adzenys and Cotempla, respectively.
Current wording
We have entered into two international exclusive collaboration, distribution and supply agreements to commercialize certain of our ADHD products. The first agreement is with Medomie, a privately owned pharmaceutical company, which will commercialize the ADHD products in Israel and the Palestinian Authority. The second agreement is with Lupin, a subsidiary of global pharmaceutical company Lupin Limited, which will commercialize the ADHD products in Canada. We will supply the ADHD products to Medomie and Lupin based on forecasts and provide various product commercialization, regulatory and quality assurance resources. Medomie and Lupin are responsible for seeking local regulatory approvals and marketing authorizations for the ADHD products, which is expected to occur over the next 24 months.
Previous wording
In light of our own business activities and external developments in the biopharmaceutical industry, we regularly review our performance, prospects and risks such as the potential impact to our business resulting from our competitive landscape (i.e., entry of generic competitors, payer pressures, new branded entrants, etc.). These reviews have included consideration of potential partnerships, collaborations, and other strategic transactions such as acquisitions or divestitures of programs or technology to enhance stockholder value. We continue to evaluate potential strategic transactions and business combinations, but there can be no guarantee that we will be able to enter into such transactions, and there can be no guarantee that such transactions will achieve our desired goals.
Current wording
In light of our own business activities and external developments in the biotechnology and biopharmaceutical industries, Aytu management and our Board of Directors regularly reviews our performance, prospects and risks such as the potential impact to our business resulting from our competitive landscape (i.e., entry of generic competitors, payor pressures, new branded entrants, etc.). These reviews have included consideration of potential partnerships, collaborations, and other strategic transactions such as acquisitions or divestitures of programs or technology to enhance stockholder value. Aytu management and our Board expect to continue to evaluate potential strategic transactions and business combinations.
Previous wording
We continue to experience inflationary pressures and could experience supply chain disruptions related to the sourcing of raw materials, energy, logistics and labor for a number of reasons, including ongoing geopolitical events. While we do not have sales or operations in Russia or Ukraine and we do not have significant sales or operations in the Middle East, it is possible that the conflicts or actions taken in response, could adversely affect some of our markets and suppliers, economic and financial markets, costs and availability of energy and materials, or cause further supply chain disruptions. Inflationary pressures and supply chain disruptions could be significant across the business throughout fiscal 2025 and into fiscal 2026. Understanding these risks, we have not experienced stock outages for our ADHD products since the launch of those products, and the pediatric product supply has remained adequate to satisfy demand for the preceding four years.
Current wording
We continue to experience inflationary pressures and economic uncertainty caused by global geopolitical factors and tariffs, and our industry is currently encountering supply chain disruptions related to the sourcing of raw materials, increased costs of materials as result of tariffs, energy, logistics and labor for a number of reasons, including ongoing geopolitical events. It is possible that trade wars could adversely affect some of our markets and suppliers, economic and financial markets, costs and availability of energy and materials, or cause further supply chain disruptions. Inflationary pressures, increased costs and supply chain disruptions could be significant across the business throughout fiscal 2026 and into fiscal 2027. Understanding these risks, we have not experienced stock outages for our ADHD products since the launch of those products.
Previous wording
In October 2024, we received a Notice Letter from Granules, stating that it intends to market a generic version of Adzenys before the expiration of all patents currently listed in the Orange Book. The Notice Letter states that Granules’ NDA for the generic version of Adzenys contains a Paragraph IV certification alleging that these patents are not valid, not enforceable, and/or will not be infringed by the commercial manufacture, use or sale of the generic version of Adzenys. We timely filed a patent infringement lawsuit on December 11, 2024, against Granules to trigger a stay precluding the FDA from approving Granules’ NDA for a generic version of Adzenys for up to 30 months or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. On January 7, 2025, Granules submitted an answer to the complaint. This litigation is ongoing, and a trial has been scheduled to begin on December 7, 2026. We plan to vigorously enforce our intellectual property rights related to Adzenys.
Current wording
In October 2024, we received the Notice Letter from Granules, stating that it intends to market a generic version of Adzenys before the expiration of all patents currently listed in the Orange Book. The Notice Letter states that Granules’ NDA for the generic version of Adzenys contains a Paragraph IV certification alleging that these patents are not valid, not enforceable, and/or will not be infringed by the commercial manufacture, use or sale of the generic version of Adzenys. We timely filed a patent infringement lawsuit on December 11, 2024, against Granules to trigger a stay precluding the FDA from approving Granules’ NDA for a generic version of Adzenys for up to 30 months or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. On January 7, 2025, Granules submitted an answer to the complaint. On October 28, 2025, the case was reassigned to visiting judge, Judge Jennifer Choe-Groves of the United States Court of International Trade. This litigation is ongoing, and a trial has been rescheduled to begin on January 11, 2027. We plan to vigorously enforce our intellectual property rights related to Adzenys.
Previous wording
The results of operations for the three and nine months ended March 31, 2025, compared to the three and nine months ended March 31, 2024, is as follows:
Current wording
The results of operations for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, is as follows:
Previous wording
During the nine months ended March 31, 2025, net revenue increased by $0.7 million, or 1%, compared to the same period ended March 31, 2024, primarily due to a $3.3 million increase in net revenue in the first quarter of fiscal 2025 related to a decrease in estimated variable consideration as a result of successful negotiations with a vendor offset by increases in savings offers costs impacting the net revenue.
Current wording
During the three months ended September 30, 2025, net revenue decreased by $2.7 million, or 16% compared to the same period ended September 30, 2024, primarily due to a $3.3 million one-time increase in our ADHD Portfolio net revenue in the first quarter of fiscal 2025 related to a change is estimated variable consideration that resulted from negotiations with a vendor that resulted in a reduction to the liability purportedly owed the vendor.
Previous wording
During the three months ended March 31, 2025, selling and marketing expense was relatively flat compared to the same period ended March 31, 2024, and during the nine months ended March 31, 2025, selling and marketing expense decreased by $0.5 million, or 3%, compared to the same period ended March 31, 2024. Selling and marketing expense decreases are primarily driven by reduced commission expense and variable commercial marketing program fees in response to lower revenue, partially offset by increases in labor and service costs.
Current wording
During the three months ended September 30, 2025, selling and marketing expense decreased by $0.3 million, 6% compared to the same period ended September 30, 2024, primarily driven by reduced commission expense and variable commercial marketing program fees, partially offset by increases in labor, service costs and EXXUA launch costs.
Previous wording
During the three and nine months ended March 31, 2025, general and administrative expense decreased by $0.7 million, or 15% and $2.2 million, or 14% compared to the same period ended March 31, 2024. The decrease is primarily a result of continued cost reduction efforts and improved operational efficiencies.
Current wording
During the three months ended September 30, 2025, general and administrative expense decreased by $0.2 million, or 4% compared to the same period ended September 30, 2024. The decrease is primarily a result of continued cost reduction efforts and improved operational efficiencies such as reduced facilities expense, partially offset by increases in labor and service costs.
Previous wording
During the three and nine months ended March 31, 2025, amortization expense of intangible assets, excluding amounts included in cost of sales, was relatively consistent compared to the same periods ended March 31, 2024.
Current wording
During the three months ended September 30, 2025, amortization expense of intangible assets, excluding amounts included in cost of goods sold, decreased by $0.5 million, or 52% compared to the same period ended September 30, 2024, primarily due to impairments of certain intangible assets recorded in fiscal 2025.
Previous wording
During the three and nine months ended March 31, 2025, we incurred zero and $2.1 million of restructuring costs, respectively, related to our previously announced operational realignment and related costs. For both the three and nine months ended March 31, 2024, we incurred $0.2 million of restructuring costs related to our previously announced operational realignment and related costs.
Current wording
During the three months ended September 30, 2025, we incurred zero restructuring costs compared to $0.8 million during same period ended September 30, 2024. Restructuring costs during the first quarter of fiscal 2025 related to our previously announced operational realignment and related costs, which was completed during fiscal 2025.
Previous wording
During the three and nine months ended March 31, 2025, other income, net was relatively consistent compared to the same periods ended March 31, 2024.
Current wording
During the three months ended September 30, 2025, other income, net was relatively consistent compared to the same periods ended September 30, 2024.
Previous wording
The fair value of derivative warrant liabilities is calculated using either the Black-Scholes option pricing model or the Monte Carlo simulation model and is revalued at each reporting period, and changes are reflected through income or expense. For the three and nine months ended March 31, 2025, we recognized an unrealized gain of $2.3 million and $8.2 million, respectively, from the fair value adjustment primarily driven by a decrease in our stock price during the three and nine months ended March 31, 2025. For the three and nine months ended March 31, 2024, we recognized an unrealized gain of $1.0 million and an unrealized loss of $5.5 million, respectively, from the fair value adjustment primarily driven by a decrease in our stock price during the three months ended March 31, 2024, but an overall increase in our stock price during the nine months ended March 31, 2024.
Current wording
The fair value of derivative warrant liabilities is calculated using either the Black-Scholes option pricing model or the Monte Carlo simulation model and is revalued at each reporting period, and changes are reflected through income or expense. For the three months ended September 30, 2025, and 2024, we recognized a gain of $3.8 million and $2.9 million, respectively, from the fair value adjustment primarily driven by a decrease in our stock price during the three months ended September 30, 2025, and 2024.
Previous wording
Net Income (Loss) from Discontinued Operations, Net of Tax
Current wording
Net Income from Discontinued Operations, Net of Tax
Previous wording
Net income (loss) from discontinued operations, net of tax is related to the wind down and divestiture of our Consumer Health business that was completed in the first quarter of fiscal 2025. SeePart I, Item 1, Note 20 – Discontinued Operationsin this Form 10-Q for further detail.
Current wording
Net income from discontinued operations, net of tax is related to the wind down and divestiture of our Consumer Health business that was completed in the first quarter of fiscal 2025. SeePart I, Item 1, Note 20 – Discontinued Operationsin this Form 10-Q for further detail.
Previous wording
We finance our operations through a combination of sales of our common stock and warrants, borrowings under our revolving credit facility and from cash generated from operations.
Current wording
We have obligations related to our loan agreements, milestone payments for licensed products, and manufacturing purchase commitments. We finance our operations through a combination of sales of our common stock and warrants, borrowings under our revolving credit facility and from cash generated from operations.
Previous wording
On September 26, 2024, we filed a shelf registration statement on Form S-3, which was declared effective by the SEC on October 15, 2024. This shelf registration statement covers the offering, issuance and sale by us of up to an aggregate of $100.0 million of our common stock, preferred stock, debt securities, warrants, rights and units (the “2024 Shelf”). Through the filing date of this Form 10-Q, $100.0 million remains available under the 2024 Shelf. This availability is subject to the SEC’s “baby shelf” limitation as set forth in SEC Instruction I.B.6 limitation to the Form S-3.
Current wording
On September 26, 2024, we filed a shelf registration statement on Form S-3, which was declared effective by the SEC on October 15, 2024. This shelf registration statement covers the offering, issuance and sale by us of up to an aggregate of $100.0 million of our common stock, preferred stock, debt securities, warrants, rights and units (the “2024 Shelf”). Through the filing date of this Annual Report, $100.0 million remains available under the 2024 Shelf. This availability is subject to the SEC’s “baby shelf” limitation as set forth in SEC Instruction I.B.6 limitation to the Form S-3.
Previous wording
The Eclipse Term Loan consists of a principal amount of $13.0 million, at an interest rate of SOFR plus 7.0%, with a four-year term and a straight-line loan amortization period of seven years, which would provide for a loan balance at the end of the four-year term of $5.6 million to be repaid on June 12, 2028, the maturity date. We used the proceeds of the Eclipse Term Loan and a portion of the proceeds from warrant exercises described below to repay in full a $15.0 million term note.
Current wording
Under our Eclipse Agreement, we have two loan agreements, the Eclipse Term Loan and the Eclipse Revolving Loan. The Eclipse Term Loan consists of an outstanding principal amount of $13.0 million on the closing date of the Eclipse Amendment No. 6, at an interest rate of the SOFR plus 7.0%, with a four-year term and a straight-line loan amortization period of seven years, which would provide for a loan balance at the end of the four-year term of $5.6 million to be repaid on the June 12, 2029, maturity date, as amended. In June 2024, we used the initial proceeds from the Eclipse Term Loan and a portion of the proceeds from the warrant exercises described above to repay in full a $15.0 million term loan. The Eclipse Revolving Loan has a potential maximum borrowing base of $14.5 million at an interest rate of the SOFR plus 4.5%, which was temporarily increased pursuant to the $1.5 million Eclipse Incremental Advance, with repayment and permanent reduction of the Eclipse Incremental Advance commencing on August 1, 2025, and continuing on the first day of each calendar month thereafter, in an amount equal to $125,000 per month, until the Eclipse Incremental Advance has been reduced to $0. In addition, we are required to pay an unused line fee of 0.5% of the average unused portion of the maximum Eclipse Revolving Loan amount during the immediately preceding month. The ability to make borrowings and obtain advances of the Eclipse Revolving Loan remains subject to a borrowing base and reserve, and availability blockage requirements and the maturity date, as amended, is June 12, 2029. Please refer toNote 10 - Revolving Credit Facility andNote 11 - Debt in Part I, Item 1 of this Form 10-Q for further information.
Previous wording
The following table shows cash flows for the nine months ended March 31, 2025, and 2024:
Current wording
The following table shows cash flows for the three months ended September 30, 2025, and 2024:
Previous wording
Net cash used in operating activities during these periods primarily reflects our net income (loss) from continuing operations, partially offset by cash provided by discontinued operations and changes in working capital and non-cash charges including stock-based compensation expense, derivative warrant liabilities gain or loss, depreciation, amortization and accretion, and other charges.
Current wording
Net cash used in operating activities during these periods primarily reflects our net income from continuing operations, partially offset by cash provided by discontinued operations and changes in working capital and non-cash charges including stock-based compensation expense, derivative warrant liabilities gain or loss, depreciation and amortization, and other charges.
Previous wording
During the nine months ended March 31, 2025, net cash used in operating activities totaled $4.7 million, which was primarily the result of an increase in accounts receivable, net and prepaid expenses and other current assets as well as a decrease in accounts payable and accrued liabilities, partially offset by positive cash earnings (net income of $6.3 million partially offset primarily by non-cash depreciation, amortization and accretion, stock compensation expense and derivative warrant liabilities adjustment).
Current wording
During the three months ended September 30, 2025, net cash used in operating activities totaled $0.6 million, which was primarily the result of an increase in accounts receivable, net and a decrease in accrued liabilities as well as negative cash earnings (derivative warrant liabilities adjustment partially offset by net income of $2.0 million, non-cash depreciation and amortization, stock-based compensation expense, and inventory write-down), partially offset by a decrease in inventories and an increase in accounts payable.
Previous wording
During the nine months ended March 31, 2024, net cash used in operating activities totaled $0.6 million. The use of cash was primarily the result of the decrease in accounts payable and accrued liabilities and an increase in inventories, partially offset by positive cash earnings (net loss of $11.2 million offset by non-cash depreciation, amortization and accretion, derivative warrant liabilities adjustment, and stock compensation expense) and by funds received from the ERC program recorded in other operating liabilities (seePart I, Item 1, Note 2 – Summary of Significant Accounting Policies andPart I, Item 1, Note 9 – Other Liabilitiesin this Form 10-Q for further detail).
Current wording
During the three months ended September 30, 2024, net cash used in operating activities totaled $1.2 million. The use of cash was primarily the result of the decrease in accounts receivable, net; inventories; prepaid expenses and other assets; other accrued liabilities; and accrued liabilities, partially offset by positive cash earnings (net income of $1.5 million offset by non-cash depreciation and amortization, derivative warrant liabilities adjustment, and stock compensation expense). Additionally, these were partially offset by an increase in accounts payable.
Previous wording
Net cash provided by investing activities for the nine months ended March 31, 2025, was driven by cash received from the sale of fixed assets, partially offset by cash payments for fixed asset purchases. Net cash used in investing activities was nominal during the nine months ended March 31, 2024.
Current wording
There was no net cash provided by or used in investing activities during the three months ended September 30, 2025. Net cash provided by investing activities for the three months ended September 30, 2024, were driven by cash received from the sale of fixed assets, partially offset by cash payments for fixed asset purchases.
Previous wording
Net Cash Provided By (Used In) Investing Activities
Current wording
Net Cash Provided by Financing Activities
Previous wording
Net cash provided by financing activities of $2.5 million during the nine months ended March 31, 2025, was primarily from net proceeds received from revolving credit facility partially offset by payments made to fixed payment arrangements and payments made on borrowings. Net cash used in financing activities of $2.3 million during the nine months ended March 31, 2024, was primarily from payments made to fixed payment arrangements.
Current wording
Net cash provided by financing activities of $0.9 million during the three months ended September 30, 2024, was primarily from net proceeds received from our Eclipse Revolving Loan, partially offset by payments made to fixed payment arrangements and payments made against borrowings.
Previous wording
As a result of our acquisitions and licensing agreements, we are contractually and contingently obliged to pay, when due, various fixed and contingent milestone payments. SeeNote 13 – Commitments and Contingencies in the accompanying notes to the unaudited consolidated financial statements for further information.
Current wording
As a result of our acquisitions, exclusive commercialization agreement, and licensing agreements, we are contractually and contingently obliged to pay, when due, various fixed and contingent milestone payments. SeeNote 13-Commitments and Contingencies in Part I, Item 1 of this Form 10-Q for further information.
Previous wording
Upon closing of the acquisition of a line of prescription pediatric products from Cerecor, Inc. in October 2019, we assumed payment obligations that require us to make fixed and product milestone payments. As of March 31, 2025, the Tris Karbinal Agreement accrued fixed payment arrangement balance was $0.7 million recorded in other current liabilities on the consolidated balance sheet.
Current wording
Upon closing of the acquisition of a line of prescription pediatric products from Cerecor, Inc. in October 2019, we assumed payment obligations that required us to make fixed and product milestone payments. As of September 30, 2025, we had no remaining fixed payment arrangement accruals recorded in our unaudited consolidated balance sheet.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net Cash Provided by Investing Activities
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
We have obligations related to our loan agreements, milestone payments for licensed products, and manufacturing purchase commitments.
Previous report — wording carried elsewhere
The Eclipse Revolving Loan allows us to borrow up to $14.5 million at an interest rate of SOFR plus 4.5%. In addition, we are required to pay an unused line fee of 0.5% of the average unused portion of the maximum Eclipse Revolving Loan amount during the immediately preceding month. The ability to make borrowings and obtain advances of the Eclipse Revolving Loan remains subject to a borrowing base and reserve, and availability blockage requirements and the maturity date, as amended, is June 12, 2028.