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SUPPLEMENTAL BALANCE SHEET DETAILS | 6 Months Ended
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Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
SUPPLEMENTAL BALANCE SHEET DETAILS | SUPPLEMENTAL BALANCE SHEET DETAILS Accounts Receivable, Net As of June 30, 2025 and December 31, 2024, accounts receivable, net, consisted entirely of receivables related to product sales, net of allowances for cash discounts for prompt payment of $1.3 million and $1.2 million, respectively. Inventories, Net The following table reflects the components of inventories, net, as of June 30, 2025 and December 31, 2024 (in thousands):
| June 30, 2025 |  | December 31, 2024
Raw materials | $ | 15,475 |  |  | $ | 15,524 |
Work-in-process | 9,248 |  |  | 4,900 |
Finished goods | 8,157 |  |  | 17,884 |
Total inventories, net | $ | 32,880 |  |  | $ | 38,308 |
The Company writes down the value of inventory for potential excess or obsolete inventories based on an analysis of inventory on hand and projected demand. As of June 30, 2025 and December 31, 2024, inventory reserves were $7.8 million and $8.7 million, respectively. Prepaid and Other Current Assets The following table reflects prepaid and other current assets as of June 30, 2025 and December 31, 2024 (in thousands):
| June 30, 2025 |  | December 31, 2024
Insurance receivable | $ | 13,200 |  |  | $ | — |
Prepaid assets and deposits | 4,503 |  |  | 9,764 |
Other current assets | 353 |  |  | 303 |
Total prepaid and other current assets | $ | 18,056 |  |  | $ | 10,067 |
On April 10, 2025, the Company reached an agreement in principle in the case Luo v. Spectrum Pharmaceuticals, Inc., et. al. (“Luo case”). As part of the settlement in principle, the Company recognized a liability of $16.0 million during the first quarter of 2025 (as discussed in the section “Accrued Liabilities” below). The Company also recognized an insurance receivable of $13.3 million during the same period related to expected insurance recoveries as a result of the Luo case. In July 2025, the Company completed the settlement of the liability in full. As a result, both the insurance receivable and the accrued liability related to the Luo case were reduced to zero. Refer to Note 9. Commitments and Contingencies for further details. Other current assets includes the Company’s investment in NES Therapeutic, Inc. (“NES”). In August 2018, the Company entered into a Convertible Secured Note Purchase Agreement (the “Note Agreement”) with NES. Pursuant to the terms of the Note Agreement, the Company purchased, for total consideration of $3.0 million, a Convertible Secured Promissory Note of $3.0 million in aggregate principal (the “NES Note”) which accrues interest annually at a rate of 10%. This investment is accounted for as a loan receivable and is valued at amortized cost. The NES Note was extended to July 31, 2025, with both the aggregate principal and accrued interest maturing on that date. Following the maturity of the NES Note and the inability of NES to repay the loan, the Company and NES entered into negotiations. The Company is evaluating its rights under the Note Agreement. As of both June 30, 2025 and December 31, 2024, the Company has assessed an estimated $3.5 million expected credit loss on its investment, representing the entire aggregate principal amount and outstanding interest on the NES Note, based on its evaluation of probability of default that exists. Property and Equipment, Net The following table reflects property and equipment, net, as of June 30, 2025 and December 31, 2024 (in thousands):
| June 30, 2025 |  | December 31, 2024
Furniture and office equipment | $ | 1,412 |  |  | $ | 1,412 |
Laboratory equipment | 20 |  |  | 20 |
Leasehold improvements | 2,551 |  |  | 2,551 |
| 3,983 |  |  | 3,983 |
Less: Accumulated depreciation | (3,468) |  |  | (3,397) |
Property and equipment, net | $ | 515 |  |  | $ | 586 |
Depreciation expense was less than $0.1 million and $0.1 million for the three and six months ended June 30, 2025 respectively, and less than $0.1 million and $0.1 million for the three and six months ended June 30, 2024, respectively. Depreciation expense is recognized in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Comprehensive Loss. Accrued Liabilities The following table reflects accrued liabilities as of June 30, 2025 and December 31, 2024 (in thousands):
| June 30, 2025 |  | December 31, 2024
Accrued compensation | $ | 2,323 |  |  | $ | 3,260 |
Accrued restructuring costs (See Note 14) | 314 |  |  | 1,187 |
Accrued legal | 19,451 |  |  | 8,490 |
Interest payable | 867 |  |  | 867 |
Accrued royalties | 3,589 |  |  | 1,223 |
Other accrued liabilities | 4,511 |  |  | 3,820 |
Total accrued liabilities | $ | 31,055 |  |  | $ | 18,847 |
Accrued legal as of June 30, 2025 includes a liability for the settlement in principle of the Luo case in the amount of approximately $16.0 million. In July 2025, the Company settled the liability in full and as a result, the accrued liability related to the Luo case was reduced to zero. Refer to “Prepaid and Other Current Assets” above and Note 9. Commitments and Contingencies for further details. Other Long-Term Liabilities The following table reflects other long-term liabilities as of June 30, 2025 and December 31, 2024 (in thousands):
| June 30, 2025 |  | December 31, 2024
ROLVEDON product royalties | $ | 5,479 |  |  | $ | 5,479 |
Noncurrent operating lease liabilities | 995 |  |  | 1,122 |
Liability for uncertain tax provisions | 2,433 |  |  | 2,337 |
Deferred employee retention credits | — |  |  | 1,212 |
Total other long-term liabilities | $ | 8,907 |  |  | $ | 10,150 |
In the second quarter of 2025, the statute of limitations for the deferred employee retention credits lapsed. As a result, for the three and six months ended June 30, 2025, the Company recognized $2.4 million of income in Selling, general, and administrative expenses in the Company’s Condensed Consolidated Statements of Comprehensive Loss, comprised of the $1.2 million noted in the table above and an additional $1.2 million of employee retention tax credits received during the second quarter of 2025 associated with claims filed by Spectrum prior to the Spectrum Merger.

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