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Asset Held for Sale

9 Months Ended

Sep. 30, 2025

8. Asset Held for Sale

Asset held for sale consists of the following:

Schedule of Assets Held for Sale

(in thousands)	September 30, 2025			December 31, 2024
Xepi® license	$	4,600		$	4,600
Less: Accumulated amortization		(2,300	)		(2,300	)
Asset held for sale	$	2,300		$	2,300

The Xepi product line has been held for sale since the third quarter of 2024, when the Company determined that the intangible asset met the criteria to be classified as held for sale in accordance with ASC 360-10-45-9. The Company has classified the asset as held for sale under current assets in the condensed consolidated balance sheets, and finalized the sale on November 6, 2025 (See Note. 17 Subsequent Events). 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 Condensed Statement of Operations upon classification as an asset held for sale and the related revenue and expenses associated with the asset were de-minimus. There have been no subsequent changes to fair value as of September 30, 2025 and the date of this report. 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.