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Note 18 - Subsequent Events
3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 18. SUBSEQUENT EVENTS

 

The Company has evaluated all subsequent events through the filing date of this Form 10-Q with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the condensed consolidated financial statements as of March 31, 2025, and events which occurred subsequently but were not recognized in the condensed consolidated financial statements. Except as described below, there were no subsequent events which required recognition, adjustment to, or disclosure in, the unaudited condensed consolidated financial statements.

 

In connection with the Avenova Asset Divestiture and in accordance with the Purchase Agreement, the final amount of the purchase price that we will receive in the Avenova Asset Divestiture remained subject to possible upward or downward adjustment up to $500,000 based on the amount of the Net Working Capital Adjustment that we and PRN would determine post-closing. On May 2, 2025, the Net Working Capital Adjustment agreed upon by PRN and us was $366 thousand, which amount was determined based upon the difference between the amount of our Net Working Capital (as defined in the Purchase Agreement) immediately prior to the closing and the amount of the target working capital value of $800 thousand. This Net Working Capital Adjustment of $366 thousand was paid to PRN from the Escrow and resulted in a reduction of the total purchase price that we received from the Avenova Asset Divestiture. Following the payment of the Net Working Capital Adjustment amount, an outstanding balance of $134 thousand remains in the Escrow available for any post-closing indemnification obligations we may have to PRN until July 17, 2025.