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Significant Accounting Policies | 9 Months Ended
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Mar. 31, 2023
Accounting Policies [Abstract] |
Significant Accounting Policies | 2. Significant Accounting Policies Use of Estimates Management uses estimates and assumptions relating to reporting amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, revenue recognition, allowance for doubtful accounts, determination of variable consideration for accruals of chargebacks, administrative fees and rebates, government rebates, returns and other allowances, write-downs for inventory obsolescence, valuation of financial instruments and intangible assets, accruals for contingent liabilities, fair value of long-lived assets, the value of goodwill, income tax provision, deferred taxes and valuation allowance, determination of right-of-use assets and lease liabilities, purchase price allocations, the depreciable lives of long-lived assets, classification of warrants equity versus liability, and the valuation of derivative warrant liability. Because of the uncertainties inherent in such estimates, actual results may differ from those estimates. Management periodically evaluates estimates used in the preparation of the financial statements for reasonableness. Previously Reported Financial Statements The classification of certain of the Company’s warrants was previously recorded as equity. These warrants according to Generally Accepted Accounting Principles in the United States (“GAAP”) should have been classified as derivative warrant liabilities at fair value and marked to market at each reporting period, with changes in fair value recorded in earnings. The affected filing periods include the quarterly unaudited financial statements as of March 31, 2022 and the audited financial statements as of June 30, 2022. ​ SEC Staff Accounting Bulletin No. 99, “Materiality,” and the Financial Accounting Standards Board (“FASB”), Statement of Financial Accounting Concepts No. 2 “Qualitative Characteristics of Accounting Information” indicate that quantifying and aggregating adjustments is only the beginning of an analysis of materiality and that both quantitative and qualitative factors must be considered in determining whether individual adjustments are material. The Company evaluated the adjustments and determined that the impact was not material to the condensed consolidated financial statements for the quarter ended March 31, 2022 and to the condensed consolidated balance sheet as of June 30, 2022. As a result, adjustments for the immaterial adjustments were applied to these periods for comparative purposes. The adjustments did not change the Company’s reported total assets, cash and cash equivalents, operating expenses, operating losses or cash flows from operations. ​ The condensed consolidated financial statements as of and for the three and nine months ended March 31, 2022 have been adjusted as shown in the following tables.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | March 31, 2022
​ | ​ | As Previously | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reported | ​ | Adjustment | ​ | As Adjusted
​ | ​ | (in thousands)
Statement of Operation data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gain on derivative warrant liabilities | ​ | $ | 211 | ​ | $ | (218) | ​ | $ | (7)
Total other (expense) income (1) | ​ | $ | 348 | ​ | $ | (218) | ​ | $ | 130
Loss before income tax | ​ | $ | (53,073) | ​ | $ | (218) | ​ | $ | (53,291)
Net loss | ​ | $ | (53,073) | ​ | $ | (218) | ​ | $ | (53,291)
Basic and diluted net loss per common share | ​ | $ | (35.80) | ​ | $ | (0.10) | ​ | $ | (35.90)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Statement of Stockholders' Equity data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Issuance of common stock, net of issuance cost | ​ | $ | 7,034 | ​ | $ | (3,178) | ​ | $ | 3,856
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net loss by segment | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Rx Segment | ​ | $ | (52,311) | ​ | $ | (218) | ​ | $ | (52,529)
Consumer Health Segment | ​ | ​ | (762) | ​ | ​ | — | ​ | ​ | (762)
Consolidated net loss | ​ | $ | (53,073) | ​ | $ | (218) | ​ | $ | (53,291)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) Includes reclassification of gain or loss from fair value of contingent consideration. See Prior Period Reclassification in Note 1 – Nature of Business, Financial Condition, Basis of Presentation.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended
​ | ​ | March 31, 2022
​ | ​ | As Previously | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reported | ​ | Adjustment | ​ | As Adjusted
​ | ​ | (in thousands)
Statement of Operation data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gain on derivative warrant liabilities | ​ | $ | 211 | ​ | $ | (218) | ​ | $ | (7)
Total other (expense) income (1) | ​ | $ | 384 | ​ | $ | (218) | ​ | $ | 166
Loss before income tax | ​ | $ | (92,582) | ​ | $ | (218) | ​ | $ | (92,800)
Net loss | ​ | $ | (92,472) | ​ | $ | (218) | ​ | $ | (92,690)
Basic and diluted net loss per common share | ​ | $ | (68.00) | ​ | $ | (0.13) | ​ | $ | (68.13)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Statement of Cash Flow data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net loss | ​ | $ | (92,472) | ​ | $ | (218) | ​ | $ | (92,690)
Gain on derivative warrant liabilities | ​ | $ | (211) | ​ | $ | 218 | ​ | $ | 7
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net loss by segment | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Rx Segment | ​ | $ | (88,359) | ​ | $ | (218) | ​ | $ | (88,577)
Consumer Health Segment | ​ | ​ | (4,113) | ​ | ​ | — | ​ | ​ | (4,113)
Consolidated net loss | ​ | $ | (92,472) | ​ | $ | (218) | ​ | $ | (92,690)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) Includes reclassification of gain or loss from fair value of contingent consideration. See Prior Period Reclassification in Note 1 – Nature of Business, Financial Condition, Basis of Presentation. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of March 31, 2022
​ | ​ | As Previously | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reported | ​ | Adjustment | ​ | As Adjusted
​ | ​ | (in thousands)
Statement of Stockholders' Equity data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Additional paid-in capital | ​ | $ | 331,915 | ​ | $ | (3,178) | ​ | $ | 328,737
Accumulated deficit | ​ | ​ | (270,771) | ​ | ​ | (218) | ​ | ​ | (270,989)
Total stockholders’ equity | ​ | $ | 61,144 | ​ | $ | (3,396) | ​ | $ | 57,748
​ The consolidated balance sheet and the consolidated statement of stockholders’ equity as of June 30, 2022 have been adjusted as shown in the table below.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of June 30, 2022
​ | ​ | As Previously | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Reported | ​ | Adjustment | ​ | As Adjusted
​ | ​ | (in thousands)
Derivative warrant liabilities | ​ | $ | — | ​ | $ | 1,796 | ​ | $ | 1,796
Total liabilities | ​ | $ | 91,531 | ​ | $ | 1,784 | ​ | $ | 93,315
Additional paid-in capital | ​ | $ | 334,560 | ​ | $ | (3,174) | ​ | $ | 331,386
Accumulated deficit | ​ | $ | (288,472) | ​ | $ | 1,394 | ​ | $ | (287,078)
Total stockholders’ equity | ​ | $ | 46,092 | ​ | $ | (1,784) | ​ | $ | 44,308
​ Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. Liability and equity classified warrants are valued using a Black-Scholes option model or Monte Carlo simulation model at issuance and for each reporting period when applicable. Income Taxes The Company calculates its quarterly income tax provision based on estimated annual effective tax rates applied to ordinary income (or loss) and other known items computed and recognized when they occur. There have been no changes in tax law affecting the tax provision during the three and nine months ended March 31, 2023. An ownership change (generally a 50% change in equity ownership over a three-year period) could limit the Company’s ability to offset, post-change, U.S. federal taxable income. Section 382 of the Internal Revenue Code imposes an annual limitation on the amount of post-ownership change taxable income a corporation may offset with pre-ownership change net operating loss carryforwards and certain recognized built-in losses. The Company believes that previous acquisitions, financing transactions, and equity ownership changes in the past five years may have caused a limitation on its ability to use the pre-acquisition net operating loss carryovers. The ownership change scenario could result in increased future tax liability. The Company is in the process of analyzing the impact of any possible ownership change result of which may be a change to the Company’s net deferred tax asset or liability position. Impairment of Other Intangibles Assets Acquired in-process research and development (“IPR&D) is an intangible asset classified as an indefinite-lived asset until the completion or abandonment of the associated research and development (“R&D”) effort. In periods after the acquisition of IPR&D, the Company may (1) continue internal R&D efforts associated with the acquired assets or collaborate with another party in R&D efforts; (2) dispose of the assets through a sale; (3) out-license the assets; (4) temporarily postpone further development; or (5) abandon R&D efforts. IPR&D may be subject to different subsequent accounting treatment depending on the course of action chosen by the Company with respect to the asset. If the Company changes strategies related to the IPR&D the asset could potentially be impaired (see Note —7 Goodwill and Other Intangible Assets). Recent Adopted Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued if contract modifications are made on or before December 31, 2022. The Company adopted the guidance effective July 1, 2022 for the accounting of its LIBOR indexed revolving loans by prospectively applying the interest rate. The Company elected not to reassess the discount rate of its leases. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial position and results of operations. Earnings Per Share. In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation – Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options”. The amendments in ASU 2021-04 provide guidance to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2021-04 and related updates did not have a material impact on its condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Debt—Debt with Conversion and Other Options. In June 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)— “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for convertible instruments by removing major separation models currently required. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The amendments in this update are effective for public entities that are smaller reporting companies, as defined by the Securities and Exchange Commission (”SEC”), for the fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted through a modified retrospective or full retrospective method. The Company will adopt the guidance on July 1, 2024 and does not expect the adoption of the standard to have a material impact on the Company’s condensed consolidated financial position or results of operations. Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” requiring the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of ASU 2016-13 is to provide additional information about the expected credit losses on financial instruments and other commitments to extend credit. The standard was effective for interim and annual reporting periods beginning after December 15, 2019. However, in October 2019, the FASB approved deferral of the adoption date for smaller reporting companies for fiscal periods beginning after December 15, 2022. The Company will adopt ASU 2016-13 for the fiscal year ended June 30, 2024. The Company is evaluating the impact of adoption of this standard and does not anticipate the application of ASU 2016-13 will have a material impact on the Company’s condensed consolidated financial position or results of operations. For a complete set of the Company’s significant accounting policies, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2022. There have been no significant changes to the Company’s significant accounting policies during the nine months ended March 31, 2023.

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