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Assets Held for Sale

12 Months Ended

Dec. 31, 2024

9. Assets Held for Sale

Assets held for sale consists of the following:

Schedule of Assets Held for Sale

(in thousands)	December 31, 2024			December 31, 2023
Xepi^®license	$	4,600		$	-
Less: Accumulated amortization	$	(2,300	)	$	-
Assets held for sale	$	2,300		$	-

During the third quarter of 2024, the Company adopted a plan to sell its Xepi product line and determined that the intangible asset meets the criteria to be classified as held for sale in accordance with ASC 360-10-45-9. The Company is working with a potential purchaser and expects to complete a sale within the next three to six months and, as such, has classified the asset as held for sale under current assets in the Consolidated Balance Sheets. The carrying amount of the asset at the time of classification was $2.3 million, which was the lower of its carrying value or estimated fair value less cost to sell. No gain or loss was recognized in the Statement of Operations upon classification as an asset held for sale and the related revenue and expenses associated with the asset were de-minimus. This divestiture does not represent a strategic shift that will have a major effect on our consolidated results of operations and therefore is not being reported as discontinued operations.

The Xepi^® license intangible asset was recorded at acquisition-date fair value of $4.6 million and was amortized on a straight-line basis over the useful life of 11 years. Prior to recording it as held for sale, amortization expense was $0.3 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively.