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Note 7 - Intangible Assets

3 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 7 - Intangible Assets

A summary of the Company’s intangible assets, all of which are definite-lived intangible assets, as of September 30, 2025, and June 30, 2025, is as follows:

		*September 30, 2025*
		*Gross Carrying Amount*				*Accumulated Amortization*				*Net Carrying Amount*				*Weighted-Average Remaining Life*
		(in thousands)												(in years)
Product technology rights		$	22,200			$	(5,919	)		$	16,281				12.5
Technology rights			30,200				(8,051	)			22,149				12.5
Commercialization rights ⁽¹⁾			3,000				—				3,000				N/A
Total intangible assets		$	55,400			$	(13,970	)		$	41,430				12.5

⁽¹⁾	The commercialization rights intangible asset will be considered placed in service upon the launch of EXXUA, which the Company currently anticipates launching in the second fiscal quarter of 2026 with an initial estimated useful life through September 2030.

		*June 30, 2025*
		*Gross Carrying Amount*				*Accumulated Amortization*				*Net Carrying Amount*				*Weighted-Average Remaining Life*
		(in thousands)												(in years)
Product technology rights ⁽¹⁾		$	22,200			$	(5,592	)		$	16,608				12.7
Technology rights			30,200				(7,607	)			22,593				12.7
Commercialization rights ⁽²⁾			3,000				—				3,000				N/A
Total intangible assets		$	55,400			$	(13,199	)		$	42,201				12.7

⁽¹⁾	In June 2025, the Company recorded an impairment to its product technology rights intangible asset of $8.3 million. Accordingly, $19.1 million of gross carrying amount and $10.8 million of related accumulated amortization have been removed from this table as of June 30, 2025.
⁽²⁾	The commercialization rights intangible asset will be considered placed in service upon the launch of EXXUA, which the Company currently anticipates launching in the second fiscal quarter of 2026 with an initial estimated useful life through September 2030.

Gross carrying amounts are net of any impairment charges from prior periods. An intangible asset with zero net carrying amount at the end of a reporting period is not presented in the table of a future reporting period. Certain of the Company’s amortizable intangible assets include renewal options, extending the expected life of the asset. Renewal periods generally range between approximately 1 to 20 years depending on the license, patent or other agreement. Renewals are accounted for when they are reasonably assured. Intangible assets are amortized using the straight-line method over the estimated useful lives.

Amortization expense of intangible assets from continuing operations included in the unaudited consolidated statements of operations for the three months ended September 30, 2025, and 2024, are set forth in the below table:

		*Three Months Ended*
		*September 30,*
		*2025*				*2024*
		(in thousands)
Statement of operations classification:
Cost of goods sold		$	327			$	327
Operating expenses			444				921
Total amortization of intangible assets expense		$	771			$	1,248

As of September 30, 2025, the Company’s estimated future amortization expense is as follows:

		*Estimated Future Amortization Expense*
		(in thousands)
2026 (remaining 9 months)		$	2,656
2027			3,718
2028			3,718
2029			3,718
2030			3,718
2031			3,194
Thereafter			20,708
Total future amortization expense		$	41,430

Product Technology Rights

The product technology rights are related to the rights to production, supply and distribution agreements of various products.

ADHD Portfolio

The Company has developed product technology rights related to the production and sale of certain ADHD products. The formulations for the ADHD products are protected by patented technology. The estimated remaining economic life of these proprietary product technology rights is 12.5 years.

Pediatric Portfolio

The Company acquired and assumed all rights and obligations pursuant to supply and license agreements and various assignment and release agreements. As a result of the Company’s shifted focus of its commercial efforts on EXXUA and its ADHD Portfolio the Company recorded a full impairment of these intangible assets, which resulted in impairment expense of $8.3 million being recognized in the fourth quarter of fiscal 2025. Please refer to Note 12 - Fair Value Measurements for further discussion on the fair value measurement of intangible assets.

Technology Rights

TRRP Proprietary Technology

The Company has time release resin particle (“TRRP”) proprietary technology, which is a proprietary drug delivery technology protected by the Company as a trade secret that allows the Company to modify the drug release characteristics of each of its respective products. The TRRP technology underlines each of the ADHD Portfolio core products and can potentially be used in future product development initiatives as well. The estimated remaining economic life of these proprietary technology rights is 12.5 years.

Commercialization Rights

As part of the Commercialization Agreement for the exclusive commercialization rights of EXXUA in the United States, the Company capitalizes to the carrying value of intangible assets any contingent payments made that are considered a part of the Commercialization Agreement’s total consideration and which are not within the scope of derivative guidance once the contingencies related to these payments are resolved. Once the commercialization rights are considered placed in service on the launch date of EXXUA, the Company will amortize the commercialization rights on a straight-line basis over the estimated life of the asset, and the Company will adjust the carrying value of the commercialization rights on a cumulative catch-up basis as if any additional capitalized amount had been capitalized on the same date that the intangible asset was placed in service. As of September 30, 2025, the commercialization rights had not been placed in service and as a result, no amortization expense has been recorded for this intangible asset. The Company currently anticipates launching EXXUA in the second quarter of fiscal 2026 with an initial estimated useful life through September 2030.