Share-based Compensation

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

14. SHARE-BASED COMPENSATION

The following table presents share-based compensation expense included in the accompanying condensed consolidated statements of operations and comprehensive (loss) income:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2026		2025		2026		2025
Cost of goods manufactured and sold	$	1,932	$	1,479	$	3,685	$	3,261
Research and development		8,219		6,510		16,687		12,401
Selling, general and administrative		20,988		16,977		47,097		32,114
Share-based compensation expense		31,139		24,966		67,469		47,776
Research and development		—		—		5,940		—
Selling, general and administrative		—		—		12,468		—
Share-based compensation expense for acceleration of Avadel Shares		—		—		18,408		—
Total share-based compensation expense	$	31,139	$	24,966	$	85,877	$	47,776

At June 30, 2026 and December 31, 2025, $3.3 million and $3.2 million, respectively, of share-based compensation expense was capitalized and recorded as “Inventory”, and $2.5 million and $1.6 million, respectively, of share-based compensation expense was capitalized and recorded as “Other assets” in the accompanying condensed consolidated balance sheets.

During the three and six months ended June 30, 2026, share-based compensation expense included: $0.4 million and $2.2 million, respectively, in post-combination expense related to the contingent liability for the potential CVR payment to former Avadel employees; $0.3 million and $5.2 million, respectively, in expense related to certain equity awards that were modified by the February 2026 letter agreement between the Company and Richard Pops (the “Letter Agreement”) in connection with his upcoming retirement from the position of the Company’s Chief Executive Officer; and none and $18.4 million, respectively, in post-combination expense related to Avadel Shares that were accelerated and settled by the Company on the Closing Date in connection with the Avadel Acquisition. During the three and six months ended June 30, 2026, the share-based compensation expense related to these events consisted of $0.6 million and $19.0 million, respectively, in selling, general and administrative expense and $0.1 million and $6.7 million, respectively, in R&D expense.