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Note 13 - Divestitures

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 13. DIVESTITURES

On January 17, 2025, the Company completed the sale of its eyecare products sold under the Avenova brand and related assets (the “Avenova Asset Divestiture”) to PRN Physician Recommended Nutriceuticals, LLC for a base purchase price of $11.5 million, subject to customary post-closing adjustments. The Company recorded a gain of $10.7 million on the Avenova Asset Divestiture during the quarter ended March 31, 2025. Separately, on January 8, 2025, the Company completed the sale of two of its wound care trademarks to PhaseOne Health LLC (the “PhaseOne Divestiture”) for a purchase price of $500,000 and recorded a net gain of $0.5 million during the quarter ended March 31, 2025. Additional information regarding the terms of these transactions is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

In accordance with ASC 205-20, the results of operations and cash flows of the Avenova Asset Divestiture and the PhaseOne Divestiture have been excluded from continuing operations and presented as discontinued operations for all periods presented.

The components of discontinued operations for the three months ended March 31, 2025 are summarized below (in thousands):

Results of operations

		Avenova				PhaseOne				Total
Net sales		$	433			$	122			$	555
Cost of goods sold			170				75				245
Gross profit			263				47				310
Operating expenses
Sales and marketing			224				—				224
Research and development			—				3				3
Total operating expenses			224				3				227
Operating income			39				44				83
Gain on divestiture			10,700				500				11,200
Net income from discontinued operations before income taxes			10,739				544				11,283
Provision for income taxes			269				14				283
Net income from discontinued operations, net of taxes		$	10,470			$	530			$	11,000

Cash flows from discontinued operations

		Avenova				PhaseOne				Total
Operating activities:
Net income from discontinued operations		$	10,470			$	530			$	11,000
Adjustments to reconcile net income to net cash used in operating activities:
Non-cash gain on divestiture			(10,700	)			(500	)			(11,200	)
Changes in operating assets and liabilities:
Accounts receivable			(72	)			6				(66	)
Inventory			73				43				116
Prepaid expenses and other current assets			—				—				—
Other assets			9				—				9
Accounts payable and accrued liabilities			(252	)			(38	)			(290	)
Net cash (used in) provided by operating activities, discontinued operations			(472	)			41				(431	)

Investing activities:
Proceeds from divestiture			11,000				500				11,500
Net cash provided by investing activities, discontinued operations			11,000				500				11,500

Net increase in cash and cash equivalents, discontinued operations		$	10,528			$	541			$	11,069