Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-33637 | |
Entity Registrant Name | Cumberland Pharmaceuticals Inc. | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-1765329 | |
Entity Address, Address Line One | 1600 West End Avenue | |
Entity Address, Address Line Two | Suite 1300 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 255-0068 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | CPIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,191,229 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001087294 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 18,548,485 | $ 18,321,624 |
Accounts receivable, net | 10,647,267 | 9,758,176 |
Inventories, net | 4,327,526 | 4,609,362 |
Prepaid and other current assets | 2,682,673 | 3,025,248 |
Total current assets | 36,205,951 | 35,714,410 |
Non-current inventories | 12,915,896 | 12,804,529 |
Property and equipment, net | 369,499 | 367,903 |
Intangible assets, net | 21,522,441 | 22,607,918 |
Goodwill | 914,000 | 914,000 |
Operating lease right-of-use assets | 6,521,088 | 6,674,394 |
Other assets | 3,060,643 | 2,692,921 |
Total assets | 81,509,518 | 81,776,075 |
Current liabilities: | ||
Accounts payable | 13,075,764 | 14,037,629 |
Operating lease current liabilities | 362,244 | 348,092 |
Other current liabilities | 12,987,372 | 13,596,528 |
Total current liabilities | 26,425,380 | 27,982,249 |
Revolving line of credit | 16,084,144 | 12,784,144 |
Operating lease non-current liabilities | 5,200,148 | 5,296,247 |
Other long-term liabilities | 6,610,294 | 6,453,566 |
Total liabilities | 54,319,966 | 52,516,206 |
Shareholders’ equity: | ||
Common stock—no par value; 100,000,000 shares authorized; 14,159,954 and 14,121,833 shares issued and outstanding as of March 31, 2024 and December 31, 2023 , respectively | 46,923,757 | 47,091,602 |
Accumulated deficit | (19,434,424) | (17,488,161) |
Total shareholders’ equity | 27,489,333 | 29,603,441 |
Noncontrolling interests | (299,781) | (343,572) |
Total equity | 27,189,552 | 29,259,869 |
Total liabilities and equity | $ 81,509,518 | $ 81,776,075 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 14,159,954 | 14,121,833 |
Common stock, shares outstanding (in shares) | 14,159,954 | 14,121,833 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenues | $ 8,497,701 | $ 9,224,638 |
Costs and expenses: | ||
Cost of products sold | 1,575,542 | 1,250,264 |
Selling and marketing | 4,154,588 | 4,277,318 |
Research and development | 1,158,253 | 1,499,670 |
General and administrative | 2,367,907 | 2,498,993 |
Amortization | 1,110,661 | 1,230,071 |
Total costs and expenses | 10,366,951 | 10,756,316 |
Operating loss | (1,869,250) | (1,531,678) |
Interest income | 96,746 | 50,190 |
Other income | 0 | 1,847,065 |
Interest expense | (118,526) | (186,353) |
Income (loss) before income taxes | (1,891,030) | 179,224 |
Income tax expense | (11,442) | (6,938) |
Net income (loss) | (1,902,472) | 172,286 |
Net (income) loss at subsidiary attributable to noncontrolling interests | (43,791) | 19,898 |
Net income (loss) attributable to common shareholders | $ (1,946,263) | $ 192,184 |
Earnings (loss) per share attributable to common shareholders | ||
Basic (in USD per share) | $ (0.14) | $ 0.01 |
Diluted (in USD per share) | $ (0.14) | $ 0.01 |
Weighted-average shares outstanding | ||
Basic (in shares) | 14,098,022 | 14,359,322 |
Diluted (in shares) | 14,098,022 | 14,587,843 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,902,472) | $ 172,286 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,150,685 | 1,255,675 |
Amortization of operating lease right-of-use assets | 285,184 | 172,209 |
Share-based compensation | 78,754 | 90,156 |
Decrease in non-cash contingent consideration | (230,430) | (267,637) |
Increase in cash surrender value of life insurance policies over premiums paid | (129,217) | (30,799) |
Increase in noncash interest expense | 3,810 | 4,296 |
Gain on receivable of FDA fees | 0 | (1,847,065) |
Net changes in assets and liabilities affecting operating activities: | ||
Accounts receivable | (1,066,410) | 481,613 |
Inventories | 170,469 | (323,557) |
Other current assets and other assets | 205,619 | 383,612 |
Operating lease liabilities | (213,825) | 127,137 |
Accounts payable and other current liabilities | (645,542) | (1,105,263) |
Other long-term liabilities | 156,728 | (530,872) |
Net cash used in operating activities | (2,136,647) | (1,418,209) |
Cash flows from investing activities: | ||
Additions to property and equipment | (41,621) | (107,260) |
Additions to intangible assets | (16,565) | (67,193) |
Net cash used in investing activities | (58,186) | (174,453) |
Cash flows from financing activities: | ||
Borrowings on line of credit | 11,000,000 | 8,000,000 |
Payments on line of credit | (7,700,000) | (8,127,714) |
Cash settlement of contingent consideration | (630,701) | (1,464,311) |
Payments made in connection with repurchase of common shares | (247,605) | (187,117) |
Net cash provided by (used in) financing activities | 2,421,694 | (1,779,142) |
Net increase (decrease) in cash and cash equivalents | 226,861 | (3,371,804) |
Cash and cash equivalents at beginning of period | 18,321,624 | 19,757,970 |
Cash and cash equivalents at end of period | $ 18,548,485 | $ 16,386,166 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity - USD ($) | Total | Common stock | Accumulated deficit | Noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2022 | 14,366,616 | |||
Beginning balance at Dec. 31, 2022 | $ 35,974,006 | $ 47,474,973 | $ (11,208,841) | $ (292,126) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Share-based compensation (in shares) | 150,260 | |||
Share-based compensation | 90,156 | $ 90,156 | ||
Repurchase of common shares (in shares) | (86,829) | |||
Repurchase of common shares | (187,961) | $ (187,961) | ||
Net income (loss) | 172,286 | 192,184 | (19,898) | |
Ending balance (in shares) at Mar. 31, 2023 | 14,430,047 | |||
Ending balance at Mar. 31, 2023 | $ 36,048,487 | $ 47,377,168 | (11,016,657) | (312,024) |
Beginning balance (in shares) at Dec. 31, 2023 | 14,121,833 | 14,121,833 | ||
Beginning balance at Dec. 31, 2023 | $ 29,259,869 | $ 47,091,602 | (17,488,161) | (343,572) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Share-based compensation (in shares) | 163,991 | |||
Share-based compensation | 78,754 | $ 78,754 | ||
Repurchase of common shares (in shares) | (125,870) | |||
Repurchase of common shares | (246,599) | $ (246,599) | ||
Net income (loss) | $ (1,902,472) | (1,946,263) | 43,791 | |
Ending balance (in shares) at Mar. 31, 2024 | 14,159,954 | 14,159,954 | ||
Ending balance at Mar. 31, 2024 | $ 27,189,552 | $ 46,923,757 | $ (19,434,424) | $ (299,781) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Cumberland Pharmaceuticals Inc. (“Cumberland,” the “Company,” or as used in the context of “we,” “us,” or “our”), is a specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription pharmaceutical products. We are dedicated to our mission of working together to provide unique products that improve the quality of patient care. Our primary markets are hospital acute care, gastroenterology and oncology. These medical specialties are characterized by relatively concentrated prescriber bases that we believe can be served effectively by small, targeted sales forces. We promote our approved products through our hospital, oncology and field sales forces in the United States. We have also established international partnerships and are continuing to build a network of companies outside the U.S. to register and provide our medicines to patients in their countries. Cumberland’s growth strategy involves maximizing the success of our existing brands, while continuing to add differentiated products. We have built our portfolio of FDA approved products through both development and acquisition. Additionally, we look for opportunities to expand our products into new patient populations through clinical trials, improved presentations and our support of select, investigator-initiated studies. We actively pursue opportunities to acquire additional marketed products, as well as late-stage development product candidates in our target medical specialties. Our clinical team is developing a pipeline of new product candidates to address poorly met medical needs. The Company’s products are manufactured by third parties, which are overseen by our quality control and manufacturing professionals. We work closely with our warehousing and distribution partners to make our products available in the U.S. In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company have been prepared on a basis consistent with the December 31, 2023, audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly present the information set forth herein. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission (the “SEC”), and certain information and disclosures have been condensed or omitted as permitted by the SEC for interim period presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”). The results of operations for the three months ended March 31, 2024, are not necessarily indicative of the results to be expected for the entire fiscal year or any future period. Recent Accounting Guidance Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies are required to use a new forward-looking “expected loss” model that generally results in an earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies measure credit losses in a manner similar with previous guidance, except that the losses are recognized as allowances rather than as reductions in the amortized cost of the securities. Companies have to disclose additional information, including information they use to track credit quality by year of origination for most financing receivables. Companies apply the ASU’s provisions as a cumulative-effect adjustment, if any, to the accumulated deficit as of the beginning of the first reporting period in which the guidance is adopted. Related to ASU No. 2016-13 discussed above, in May 2019, the FASB issued ASU 2019-05, "Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief" which provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of the new credit losses standard. Certain eligibility requirements must be met and the election must be applied on an instrument-by-instrument basis. The election is not available for either available-for-sale or held-to-maturity debt securities. The Company adopted both ASU 2016-13 and ASU 2019-05 on January 1, 2023. Please refer to Trade and Notes Receivables Policy below. Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued final guidance intended to improve transparency of segment disclosures, primarily through expanded disclosures for significant segment expenses. The guidance is effective for annual periods beginning in 2024 and interim periods beginning in 2025. Early adoption is permitted. This new guidance will result in incremental disclosures in the notes to the Company’s segment reporting disclosures. We intend to adopt this standard in our Annual Report on Form 10-K for the year ending December 31, 2025. We are currently evaluating the potential impact of adopting this standard on our disclosures. In December 2023, the FASB issued final guidance to improve transparency of income tax disclosures. The final guidance requires enhanced disclosures primarily related to existing rate reconciliation and income taxes paid information. The guidance is effective for 2025 annual reporting. Early adoption is permitted. This new guidance will result in incremental disclosures in the notes to the Company’s income tax disclosures. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. We intend to adopt this standard in our Annual Report on Form 10-K for the year ending December 31, 2024. We are currently evaluating the potential impact of adopting this standard on our disclosures. Accounting Policies Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates under different assumptions and conditions. The Company's most significant estimates include: (1) its allowances for chargebacks and accruals for rebates and product returns, (2) the allowances for obsolescent or unmarketable inventory and (3) valuation of contingent consideration liabilities associated with business combinations. Operating Segments The Company has one operating segment which is specialty pharmaceutical products. Management has chosen to organize the Company based on the type of products sold. Operating segments are identified as components of an enterprise about which separate discrete financial information is evaluated by the chief operating decision maker, or decision-making group, in making decisions regarding resource allocation and assessing performance. The Company, which uses consolidated financial information in determining how to allocate resources and assess performance, has concluded that our specialty pharmaceutical products compete in similar economic markets and similar circumstances. Substantially all of the Company’s assets are located in the United States and total revenues are primarily attributable to U.S. customers. Trade and Note Receivables Policy Management evaluates the application of Current Expected Credit Losses (CECL) to all of its financial instruments including trade and note receivables. CECL is applicable to all financial instruments measured at amortized cost. Therefore for the Company, this principally relates to trade receivables and two notes receivable. CECL also requires the measurement of expected credit losses on a collective (pool) basis when similar risk characteristics exist. This may include, either individually or in combination, some of the following characteristics of Accounting Standards Codification ("ASC") (326-20-55-5): a. Internal or external credit score/rating b. Risk ratings or classification c. Financial asset type d. Size e. Effective interest rate f. Term g. Geographical location h. Historical or expected credit loss patterns i. Reasonable and supportable forecast periods The standard requires entities to pool financial assets but allows them to choose which risk characteristics to use. Under the requirements of the guidance, the Company reassesses at the end of each reporting period whether the pool of assets continues to display similar risk characteristics. With twenty years of experience, Cumberland has experienced virtually no write downs of receivables as most of our receivables are due from large successful pharmaceutical, healthcare or government customers, consistently making payments on account. Although the payment behaviors of all of our customers are consistently reliable, for the sake of transparency, we have separated our customer base into seven separate pools. The Company performs a monthly analysis of aged accounts receivable to determine how much, if any, of the accounts receivable balance should be reserved as potential bad debt. The Company reviews all balances over 90 days past due for a possible reserve and considers any specific factors or information for balances aged under 90 days if there are indicators that the balance should be reserved, such as other aged balances with the customer or bankruptcy as well as any economic issues with a customer industry or region. The adoption of ASC 326 did not result in a material impact to the Company. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The following table reconciles the numerator and denominator used to calculate basic and diluted earnings (loss) per share for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 Numerator: Net loss attributable to common shareholders $ (1,946,263) $ 192,184 Denominator: Weighted-average shares outstanding – basic 14,098,022 14,359,322 Dilutive effect of other securities — 228,521 Weighted-average shares outstanding – diluted 14,098,022 14,587,843 As of March 31, 2024 and 2023, restricted stock awards and options to purchase 496,859 and 331,338 shares of common stock, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effect would be antidilutive. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2024 | |
Revenues [Abstract] | |
Revenues | REVENUES Product Revenues The Company accounts for revenues from contracts with customers under ASC 606. The Company’s net revenues consisted of the following for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 Products: Kristalose $ 3,195,609 $ 4,315,128 Sancuso 1,827,769 1,886,793 Vibativ 1,605,489 1,848,187 Caldolor 1,470,699 935,043 Acetadote 80,203 169,856 Vaprisol 8,662 16,008 Omeclamox-Pak (1,615) (2,518) RediTrex 35,556 (141,045) Other revenue 275,329 197,186 Total net revenues $ 8,497,701 $ 9,224,638 There was no Omeclamox-Pak net revenue for the first quarter of 2024 due to our lack of commercial inventory of this product. The packager for our Omeclamox-Pak product encountered financial difficulties due to the impact of COVID-19. As we have not been able to identify an alternative site to package the product, we decided to discontinue the sales of Omeclamox-Pak and expense the remaining brand intangible assets in late 2023. For the three months ended March 31, 2024 and 2023, the amounts noted resulted from normal adjustments by channel partners. With regard to Vaprisol, we are in the process of transitioning to a new manufacturer, who was issued a U.S. Food and Drug Administration ("FDA") Form 483 in the second quarter of 2022. Once these FDA Form 483 related issues are satisfactorily resolved by the manufacturer, we will then resubmit our application for their facility to the FDA for approval. Meanwhile, we have been working with them to support a special, interim supply of compounded product for critically ill patients, which they introduced to the market in late 2023. For the three months ended March 31, 2024, the amounts reflected our share of sales of the compounded product. For the three months ended March 31, 2023, net revenue was impacted by product return and accrual adjustments. Based on an amendment to the agreement between the Company and Nordic Group B.V. ("Nordic"), effective June 30, 2023, the Company returned all rights of RediTrex back to Nordic and the Company will receive a long-term royalty on any Nordic sales of the product in the future. For the three months ended March 31, 2024 and 2023, the revenue amounts represented normal adjustments by channel partners and accrual adjustments. Other Revenues The Company has agreements with international partners for commercialization of the Company's products with associated payments included in other revenues. Those agreements provide that each of the partners is responsible for seeking regulatory approvals for the product, and following approval, each partner will be responsible for the ongoing distribution and sales in the respective international territories. The Company provides a dossier for product registration and maintains responsibility for the relevant intellectual property. Cumberland is typically entitled to receive a non-refundable, up-front payment at the time each agreement is executed as consideration for the product dossier and for the rights to the distinct intellectual property rights in the respective international territory. These agreements also typically provide for additional payments upon a partner’s achievement of a defined regulatory approval and sales milestones. The Company may also be entitled to receive royalties on future sales of the products and a transfer price on supplies. The contractual payments associated with the partner’s achievement of regulatory approvals, sales milestones and royalties on future sales are recognized as revenue upon occurrence, or at such time that the Company has a high degree of confidence that the revenue would not be reversed in a subsequent period. Other revenues include funding from federal grant programs including those secured from the FDA and from those secured by Cumberland Emerging Technologies Inc. ("CET") through the Small Business Administration. Grant revenue from these federal grant programs totaled approximately $0.1 million for the three months ended March 31, 2024 and 2023. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The Company works closely with third parties to manufacture and package finished goods for sale. Based on the arrangements with the manufacturer or packager, the Company will either take title to the finished goods at the time of shipment or at the time of arrival at the Company’s warehouses. The Company then holds such goods in inventory until distribution and sale. These finished goods inventories are stated at the lower of cost or net realizable value with cost determined using the first-in, first-out method. The Company continually evaluates inventory for potential losses due to excess, obsolete or slow-moving goods by comparing sales history and projections to the inventory on hand. When evidence indicates that the carrying value may not be recoverable, a charge is taken to reduce the inventory to its current net realizable value. At March 31, 2024 and December 31, 2023, there were no cumulative obsolescence and discontinuance losses necessary. The Company purchases the active pharmaceutical ingredient (“API”) for Kristalose and maintains the inventory of that raw material. API for the Company's Vaprisol and Vibativ brands were included in the assets associated with the acquisition of those brands and are also included in the raw materials inventory. As part of the Vibativ acquisition, the Company acquired API and work in process inventories of $15.6 million that were all initially classified as non-current inventories at the date of acquisition. As these APIs are consumed in the manufacture of our products, the value of the API involved is transferred from raw materials to finished goods. Consigned inventory represents Authorized Generic inventory stored with our partner until shipment to their customers. At March 31, 2024 and December 31, 2023, the Company's net inventories consisted of the following: March 31, 2024 December 31, 2023 Raw materials and work in process $ 12,772,140 $ 12,619,092 Consigned inventory 231,264 149,701 Finished goods 4,240,018 4,645,098 Total inventories 17,243,422 17,413,891 less non-current inventories (12,915,896) (12,804,529) Total inventories classified as current $ 4,327,526 $ 4,609,362 At March 31, 2024 and December 31, 2023, the Company's non-current inventories consisted of the following: March 31, 2024 December 31, 2023 Vibativ Raw Materials $ 6,611,426 $ 6,611,426 Kristalose Raw Materials 3,213,387 3,263,516 Vaprisol Conivaptan Raw Materials 1,173,442 1,170,641 Sancuso Raw Materials 578,804 574,502 Caldolor Raw Materials 31,489 — Acetadote Raw Materials 25,048 33,678 Study Drug Ifetroban Raw Materials 203,383 203,383 Vibativ Finished Goods 955,969 810,454 Caldolor Finished Goods 53,326 67,307 Omeclamox 69,622 69,622 Total inventories classified as non-current $ 12,915,896 12915896 $ 12,804,529 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | LEASES On November 15, 2021, Cumberland entered into a lease (the "Lease"), pursuant to which the Company leases approximately 16,903 rentable square feet of space (the "Leased Premise") at Broadwest located in Nashville, Tennessee with 1600 West End Avenue Partners, LLC (the "Landlord"). The Leased Premise serves as the Company's new corporate headquarters. The initial term of the Lease is one hundred fifty-seven (157) months, with two consecutive options to renew for a period of five years each, with the commencement date of October 25, 2022. This lease currently expires in November 2035. The Company is responsible for paying rent to the landlord under the lease beginning three months after the commencement date. The Company pays a base rent of $33.06 per square foot of rentable space with a gradual rental rate increase of 2.5% for each year thereafter of the prior year's base rental. In addition to the monthly base rent, the Company is responsible for its percentage share of the operating expenses of the building. The lease also provided for a tenant improvement allowance which we used to build out the space. On October 24, 2022, the CET lease with The Gateway to Nashville, LLC provided the notice of exercise to extend the lease for five years. The lease is for approximately 14,200 square feet of wet laboratory and office space in Nashville, Tennessee where CET operates the CET Life Sciences Center. The wet laboratory and office space is leased through April 2028. The Company also subleases a portion of the space under this lease. Also included within the right-of-use assets are start up expenditures related to a new supply agreement with Nephron Pharmaceuticals Corporation (“Nephron”) for our Vaprisol product. These expenditures are classified as an embedded lease resulting in a right-of-use asset to be amortized over the life of the Nephron contract. As of March 31, 2024, the value of this lease was $0.9 million. Operating lease liabilities were recorded as the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for lease incentives and initial direct costs. As the Company’s leases do not contain implicit borrowing rates, the incremental borrowing rates were calculated based on information available at October 25, 2022 and May 1, 2023. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms. The weighted-average remaining lease term for the Broadwest and Gateway leases is 10.2 years and 12.6 years at March 31, 2024 and March 31, 2023, respectively. The weighted-average incremental borrowing rate used to discount the present value of the remaining lease payments is 9.40% for the Broadwest lease and 9.24% for the remaining CET lease. Lease Position At March 31, 2024 and December 31, 2023, the Company's lease assets and liabilities were as follows: Right-of-Use Assets March 31, 2024 December 31, 2023 Operating lease right-of-use assets $ 6,521,088 $ 6,674,394 Lease Liabilities March 31, 2024 December 31, 2023 Operating lease current liabilities $ 362,244 $ 348,092 Operating lease non-current liabilities 5,200,148 5,296,247 Total $ 5,562,392 $ 5,644,339 As of March 31, 2024, cumulative future minimum sublease income under non-cancelable operating subleases totals approximately $0.2 million which includes the 90-day notice required for lease termination. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows: Maturity of Lease Liabilities at March 31, 2024 Operating Leases 2024 649,494 2025 836,100 2026 909,911 2027 934,180 2028 740,791 After 2028 4,847,401 8,917,877 Less: Interest 3,355,485 Present value of lease liabilities $ 5,562,392 Rent expense is recognized over the expected term of the lease, including renewal option periods, if applicable, on a straight-line basis as a component of general and administrative expense. Rent expense and sublease income were as follows: Three months ended March 31, 2024 2023 Rent expense $ 355,064 $ 234,863 Sublease income $ 155,683 $ 115,631 |
Shareholders' Equity and Debt
Shareholders' Equity and Debt | 3 Months Ended |
Mar. 31, 2024 | |
Equity and Debt [Abstract] | |
Shareholders' Equity and Debt | SHAREHOLDERS’ EQUITY AND DEBT Share repurchases Cumberland currently has a share repurchase program available to repurchase up to $10 million of its common stock pursuant to Rule 10b-18 of the Securities Exchange Act of 1934. In January 2019, the Company's Board of Directors established the current $10 million repurchase program to replace the prior authorizations. During the three months ended March 31, 2024 and March 31, 2023, the Company repurchased 125,870 shares and 86,829 shares of common stock for approximately $0.2 million, respectively. At March 31, 2024, there remains approximately $2.8 million available under the current repurchase program for common share repurchases. Share purchases and sales In the Company's March 2024 trading window, several members of Cumberland's Board of Directors entered into agreements for trading plans to purchase shares of the Company's stock pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. These purchases are designed to increase ownership in the Company by the members of the Board. As of March 31, 2024, there were no shares purchased through these trading plans as the purchases will begin in June 2024. Share Sales In November 2017, Cumberland filed a Shelf Registration on Form S-3 with the SEC associated with the sale of up to $100 million in corporate securities. The Shelf Registration was declared effective in January 2018. It also included an At the Market ("ATM") feature that allowed the Company to sell common shares at market prices, along with an agreement with B. Riley FBR Inc. to support such a placement of shares. The Company filed an updated Form S-3 with the SEC in December 2023, which was declared effective December 26, 2023. On March 20, 2024, the Company filed a related prospectus supplement in connection with the sale and issuance of shares having an aggregate gross sales price of up to $5.8 million. The Company intends to continue an ATM feature through H.C. Wainwright & Co., LLC, that would allow the Company to issue shares of its common stock. The Company did not issue any shares under an ATM during the three months ended March 31, 2024. Restricted Share Grants and Incentive Stock Options During the three months ended March 31, 2024 and March 31, 2023, the Company issued 50,500 shares and 28,250 shares of restricted stock, respectively, to employees, advisors and directors. Restricted stock issued to employees and advisors generally cliff-vests on the fourth anniversary of the date of grant and for directors on the one-year anniversary of the date of grant. During the three months ended March 31, 2024 and 2023, the Company also issued 187,600 and 183,250 incentive stock options, respectively, to employees that cliff-vest on the fourth anniversary of the date of grant, and are largely set to expire in 2034 and 2033, respectively. Stock compensation expense is presented as a component of general and administrative expense in the condensed consolidated statements of operations as it relates to these restricted share grants and options. For the three months ended March 31, 2024, we recorded a credit of $0.01 million to stock compensation expense related to the forfeiture of unvested restricted stock awards and incentive stock options. Debt Agreement On September 5, 2023, the Company entered into a new Revolving Credit Loan Agreement ("Loan Agreement") with Pinnacle Bank. This facility provides for an aggregate principal funding amount of up to $25 million. The initial revolving line of credit is up to $20 million, with the ability for Cumberland to increase the amount to $25 million, under certain conditions. It has a three SOFR On May 6, 2024, the Company entered into a First Amendment to the Loan Agreement which provides an alternative to the financial covenant by delivering to the lender a borrowing base certificate and complying with certain borrowing base requirements which set forth a maximum revolver amount equal to (a) up to $20 million or (b) the sum of the Company's cash balances and eligible accounts receivable. As of March 31, 2024 and December 31, 2023, the Company had $16.1 million and $12.8 million, respectively, in borrowings outstanding under its revolving credit facility. The applicable interest rate under the Pinnacle Agreement was 8.125% at March 31, 2024. Joint Venture Agreement In August 2020, Cumberland entered into an agreement with WinHealth Investment (Singapore) Ltd creating WHC Biopharmaceuticals, Pte. Ltd |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESAs of March 31, 2024, the Company has approximately $52.1 million in federal net operating loss carryforwards including approximately $44.1 million of net operating loss carryforwards resulting from the exercise of nonqualified stock options. These have historically been used to significantly offset income tax obligations. The Company expects it will continue to pay minimal income taxes during 2024 and beyond, through the continued utilization of these net operating loss carryforwards, on any taxable income generated from our operations. |
Collaborative Agreements
Collaborative Agreements | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative Agreements | COLLABORATIVE AGREEMENTS Cumberland is a party to several collaborative arrangements with research institutions to identify and pursue promising pharmaceutical product candidates. The funding for these programs is primarily provided through Federal Small Business Administration (SBIR/STTR) and other grant awards. The Company has determined that these collaborative agreements, with the exception of the collaborative payment discussed in Note 10, related to Vibativ and Sancuso contingent consideration payments, do not meet the criteria for accounting under ASC Topic 808, Collaborative Agreements . The agreements do not specifically designate each party’s rights and obligations to each other under the collaborative arrangements. Except for patent defense costs, expenses incurred by one party are not required to be reimbursed by the other party. Expenses incurred under these collaborative agreements are included in research and development expenses and funding received from grants are recorded as net revenues in the condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The company is involved in litigation arising in the normal course of business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company. |
Product Acquisitions And Return
Product Acquisitions And Return Of Product Rights | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Product Acquisitions And Return Of Product Rights | PRODUCT ACQUISITIONS AND RETURN OF PRODUCT RIGHTS Vibativ During November 2018, the Company executed an agreement with Theravance Biopharma ("Theravance") to acquire the assets and global rights to Vibativ including responsibility for the marketing, distribution, manufacturing and regulatory activities associated with the brand. Vibativ is a patented, FDA approved injectable anti-infective for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia and complicated skin and skin structure infections. It addresses a range of Gram-positive bacterial pathogens, including those that are considered difficult-to-treat and multidrug-resistant. Cumberland accounted for the transaction as a business combination in accordance with ASC 805 and the product sales are included in the results of operations subsequent to the acquisition date. The Company made an upfront payment of $20 million at the closing of the transaction and a $5 million milestone payment in early April 2019. In addition, Cumberland has agreed to pay royalties of up to 20% of on-going net sales of the product in the U.S. after a $2.5 million threshold is met. The future royalty payments were recognized at their acquisition-date fair value as a contingent consideration liability, as part of the contingent consideration transferred in the business combination. Cumberland prepared the valuations of the contingent consideration liability utilizing significant unobservable inputs. As a result, the valuation is classified as Level 3 fair value measurement. The following table presents the changes in the fair value of the contingent consideration liability that is remeasured on a recurring basis. The contingent consideration earned and accrued in operating expenses is paid to Theravance quarterly. Balance at December 31, 2023 $ 4,033,373 Cash payment of royalty during the period (394,426) Change in fair value of contingent consideration included in operating expenses 28,072 Contingent consideration earned and accrued in operating expenses — Balance at March 31, 2024 $ 3,667,019 The contingent consideration liability of $3.7 million was accounted for as $1.2 million of other current liabilities and $2.5 million of other long-term liabilities on the condensed consolidated balance sheet as of March 31, 2024. Sancuso On January 3, 2022, Cumberland acquired the U.S. rights to the FDA-approved oncology-supportive care medicine Sancuso from Kyowa Kirin, Inc. ("Kyowa Kirin"), the U.S. affiliate of Japan-based Kyowa Kirin Co., Ltd. Sancuso is the first and only FDA-approved prescription patch for the prevention of nausea and vomiting in patients receiving certain types of chemotherapy treatment. The active drug in Sancuso, granisetron, slowly dissolves in the thin layer of adhesive that sticks to the patient’s skin and is released into their bloodstream over several days, working continuously to prevent chemotherapy-induced nausea and vomiting (“CINV”). It is applied 24 to 48 hours before receiving chemotherapy and can prevent CINV for up to five consecutive days. Alternative oral treatments must be taken several times (day and night) to deliver the same therapeutic doses. Cumberland acquired U.S. rights to Sancuso and assumed full commercial responsibility for the product in the U.S. – including its marketing, promotion, distribution, manufacturing and medical support activities. The product’s FDA registration was subsequently transferred from Kyowa Kirin to Cumberland in August 2023. Cumberland has also accounted for this transaction as a business combination in accordance with ASC 805 and the product sales are included in the results of operations subsequent to the acquisition date. The Company made an upfront payment of $13.5 million at the closing of the transaction. The agreement called for milestone payments of up to $3.5 million based on the attainment of various approvals and sales performance. In January 2023, Cumberland made a $1.0 million milestone payment to Kwoya Kirin based on the FDA approval of a manufacturing site for the product. In October 2023, Cumberland made a $0.5 million milestone payment based on the successful transfer of the product’s FDA registration from Kyowa Kirin to Cumberland. The remaining $2.0 million in milestones are tied to achievement of certain annual sales levels for the product. In addition, Cumberland has agreed to pay a royalty of up to 10% of on-going net sales of Sancuso. The future royalty payments were required to be recognized at their acquisition-date fair value as a contingent consideration liability, as part of the contingent consideration transferred in the business combination. Cumberland has prepared a valuation of the contingent consideration liability utilizing significant unobservable inputs. As a result, the valuation is classified as Level 3 fair value measurement. The acquisition was funded by cash and the Company's revolving credit facility. The fair value for the assets and liabilities assumed were as follows: prepaid expenses of $1.8 million, inventory of $2.6 million, goodwill of $0.03 million, intangible assets of $14.1 million, milestone payable of $1.7 million and contingent liability of $3.4 million. The following table presents the changes in the fair value of the contingent consideration liability that is remeasured on a recurring basis. Balance at December 31, 2023 $ 2,306,000 Cash payment of milestones and royalty during the period (236,275) Change in fair value of contingent consideration included in operating expenses (258,502) Contingent consideration earned and accrued in operating expenses 182,777 Balance at March 31, 2024 $ 1,994,000 The contingent consideration liability earned and accrued in operating expenses is paid to Kyowa Kirin quarterly. The contingent consideration liability of $2.0 million was accounted for as $1.2 million of current liabilities and $0.8 million of other long-term liabilities on the condensed consolidated balance sheet as of March 31, 2024. RediTrex |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) attributable to common shareholders | $ (1,946,263) | $ 192,184 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the quarter ended March 31, 2024, the following officers and directors of the Company adopted trading plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The material items of the trading plan are set forth in the table below: Name of the Director or Officer Title of the Director or Officer Date of Adoption Duration of the Trading Plan Maximum Dollar Amount to be Used in the Purchase of the Securities A.J. Kazimi Chief Executive Officer March 13, 2024 June 13, 2024 - December 20, 2024 $10,000 Kenneth J. Krogulski Director March 13, 2024 June 13, 2024 - December 20, 2024 $50,000 Jamie R. Jones Director March 13, 2024 June 13, 2024 - December 20, 2024 $10,000 Caroline R. Young Director March 13, 2024 June 13, 2024 - December 20, 2024 $5,000 |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
A.J. Kazimi [Member] | |
Trading Arrangements, by Individual | |
Name | A.J. Kazimi |
Title | Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Arrangement Duration | 190 days |
Aggregate Available | 10,000 |
Kenneth J. Krogulski [Member] | |
Trading Arrangements, by Individual | |
Name | Kenneth J. Krogulski |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Arrangement Duration | 190 days |
Aggregate Available | 50,000 |
Jamie R. Jones [Member] | |
Trading Arrangements, by Individual | |
Name | Jamie R. Jones |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Arrangement Duration | 190 days |
Aggregate Available | 10,000 |
Caroline R. Young [Member] | |
Trading Arrangements, by Individual | |
Name | Caroline R. Young |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Arrangement Duration | 190 days |
Aggregate Available | 5,000 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Guidance | Recent Accounting Guidance Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies are required to use a new forward-looking “expected loss” model that generally results in an earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies measure credit losses in a manner similar with previous guidance, except that the losses are recognized as allowances rather than as reductions in the amortized cost of the securities. Companies have to disclose additional information, including information they use to track credit quality by year of origination for most financing receivables. Companies apply the ASU’s provisions as a cumulative-effect adjustment, if any, to the accumulated deficit as of the beginning of the first reporting period in which the guidance is adopted. Related to ASU No. 2016-13 discussed above, in May 2019, the FASB issued ASU 2019-05, "Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief" which provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of the new credit losses standard. Certain eligibility requirements must be met and the election must be applied on an instrument-by-instrument basis. The election is not available for either available-for-sale or held-to-maturity debt securities. The Company adopted both ASU 2016-13 and ASU 2019-05 on January 1, 2023. Please refer to Trade and Notes Receivables Policy below. Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued final guidance intended to improve transparency of segment disclosures, primarily through expanded disclosures for significant segment expenses. The guidance is effective for annual periods beginning in 2024 and interim periods beginning in 2025. Early adoption is permitted. This new guidance will result in incremental disclosures in the notes to the Company’s segment reporting disclosures. We intend to adopt this standard in our Annual Report on Form 10-K for the year ending December 31, 2025. We are currently evaluating the potential impact of adopting this standard on our disclosures. In December 2023, the FASB issued final guidance to improve transparency of income tax disclosures. The final guidance requires enhanced disclosures primarily related to existing rate reconciliation and income taxes paid information. The guidance is effective for 2025 annual reporting. Early adoption is permitted. This new guidance will result in incremental disclosures in the notes to the Company’s income tax disclosures. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. We intend to adopt this standard in our Annual Report on Form 10-K for the year ending December 31, 2024. We are currently evaluating the potential impact of adopting this standard on our disclosures. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates under different assumptions and conditions. The Company's most significant estimates include: (1) its allowances for chargebacks and accruals for rebates and product returns, (2) the allowances for obsolescent or unmarketable inventory and (3) valuation of contingent consideration liabilities associated with business combinations. |
Operating Segments | Operating Segments |
Trade and Note Receivables Policy | Trade and Note Receivables Policy Management evaluates the application of Current Expected Credit Losses (CECL) to all of its financial instruments including trade and note receivables. CECL is applicable to all financial instruments measured at amortized cost. Therefore for the Company, this principally relates to trade receivables and two notes receivable. CECL also requires the measurement of expected credit losses on a collective (pool) basis when similar risk characteristics exist. This may include, either individually or in combination, some of the following characteristics of Accounting Standards Codification ("ASC") (326-20-55-5): a. Internal or external credit score/rating b. Risk ratings or classification c. Financial asset type d. Size e. Effective interest rate f. Term g. Geographical location h. Historical or expected credit loss patterns i. Reasonable and supportable forecast periods The standard requires entities to pool financial assets but allows them to choose which risk characteristics to use. Under the requirements of the guidance, the Company reassesses at the end of each reporting period whether the pool of assets continues to display similar risk characteristics. With twenty years of experience, Cumberland has experienced virtually no write downs of receivables as most of our receivables are due from large successful pharmaceutical, healthcare or government customers, consistently making payments on account. Although the payment behaviors of all of our customers are consistently reliable, for the sake of transparency, we have separated our customer base into seven separate pools. The Company performs a monthly analysis of aged accounts receivable to determine how much, if any, of the accounts receivable balance should be reserved as potential bad debt. The Company reviews all balances over 90 days past due for a possible reserve and considers any specific factors or information for balances aged under 90 days if there are indicators that the balance should be reserved, such as other aged balances with the customer or bankruptcy as well as any economic issues with a customer industry or region. The adoption of ASC 326 did not result in a material impact to the Company. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of numerator and denominator in earnings per share | The following table reconciles the numerator and denominator used to calculate basic and diluted earnings (loss) per share for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 Numerator: Net loss attributable to common shareholders $ (1,946,263) $ 192,184 Denominator: Weighted-average shares outstanding – basic 14,098,022 14,359,322 Dilutive effect of other securities — 228,521 Weighted-average shares outstanding – diluted 14,098,022 14,587,843 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenues [Abstract] | |
Schedule of net product revenues by product | The Company’s net revenues consisted of the following for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 Products: Kristalose $ 3,195,609 $ 4,315,128 Sancuso 1,827,769 1,886,793 Vibativ 1,605,489 1,848,187 Caldolor 1,470,699 935,043 Acetadote 80,203 169,856 Vaprisol 8,662 16,008 Omeclamox-Pak (1,615) (2,518) RediTrex 35,556 (141,045) Other revenue 275,329 197,186 Total net revenues $ 8,497,701 $ 9,224,638 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | At March 31, 2024 and December 31, 2023, the Company's net inventories consisted of the following: March 31, 2024 December 31, 2023 Raw materials and work in process $ 12,772,140 $ 12,619,092 Consigned inventory 231,264 149,701 Finished goods 4,240,018 4,645,098 Total inventories 17,243,422 17,413,891 less non-current inventories (12,915,896) (12,804,529) Total inventories classified as current $ 4,327,526 $ 4,609,362 |
Schedule of Inventory, Noncurrent | At March 31, 2024 and December 31, 2023, the Company's non-current inventories consisted of the following: March 31, 2024 December 31, 2023 Vibativ Raw Materials $ 6,611,426 $ 6,611,426 Kristalose Raw Materials 3,213,387 3,263,516 Vaprisol Conivaptan Raw Materials 1,173,442 1,170,641 Sancuso Raw Materials 578,804 574,502 Caldolor Raw Materials 31,489 — Acetadote Raw Materials 25,048 33,678 Study Drug Ifetroban Raw Materials 203,383 203,383 Vibativ Finished Goods 955,969 810,454 Caldolor Finished Goods 53,326 67,307 Omeclamox 69,622 69,622 Total inventories classified as non-current $ 12,915,896 12915896 $ 12,804,529 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease Position | At March 31, 2024 and December 31, 2023, the Company's lease assets and liabilities were as follows: Right-of-Use Assets March 31, 2024 December 31, 2023 Operating lease right-of-use assets $ 6,521,088 $ 6,674,394 Lease Liabilities March 31, 2024 December 31, 2023 Operating lease current liabilities $ 362,244 $ 348,092 Operating lease non-current liabilities 5,200,148 5,296,247 Total $ 5,562,392 $ 5,644,339 |
Schedule of Maturity of Lease Liabilities | Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows: Maturity of Lease Liabilities at March 31, 2024 Operating Leases 2024 649,494 2025 836,100 2026 909,911 2027 934,180 2028 740,791 After 2028 4,847,401 8,917,877 Less: Interest 3,355,485 Present value of lease liabilities $ 5,562,392 |
Schedule of Rent Expense and Sublease Income | Rent expense and sublease income were as follows: Three months ended March 31, 2024 2023 Rent expense $ 355,064 $ 234,863 Sublease income $ 155,683 $ 115,631 |
Product Acquisitions And Retu_2
Product Acquisitions And Return Of Product Rights (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The following table presents the changes in the fair value of the contingent consideration liability that is remeasured on a recurring basis. The contingent consideration earned and accrued in operating expenses is paid to Theravance quarterly. Balance at December 31, 2023 $ 4,033,373 Cash payment of royalty during the period (394,426) Change in fair value of contingent consideration included in operating expenses 28,072 Contingent consideration earned and accrued in operating expenses — Balance at March 31, 2024 $ 3,667,019 The following table presents the changes in the fair value of the contingent consideration liability that is remeasured on a recurring basis. Balance at December 31, 2023 $ 2,306,000 Cash payment of milestones and royalty during the period (236,275) Change in fair value of contingent consideration included in operating expenses (258,502) Contingent consideration earned and accrued in operating expenses 182,777 Balance at March 31, 2024 $ 1,994,000 |
Organization and Basis of Pre_3
Organization and Basis of Presentation Organization (Details) | 3 Months Ended |
Mar. 31, 2024 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) attributable to common shareholders | $ (1,946,263) | $ 192,184 |
Denominator: | ||
Weighted-average shares outstanding – basic (in shares) | 14,098,022 | 14,359,322 |
Dilutive effect of other securities (in shares) | 0 | 228,521 |
Weighted-average shares outstanding – diluted (in shares) | 14,098,022 | 14,587,843 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares and options (in shares) | 496,859 | 331,338 |
Revenues - Schedule of Net Prod
Revenues - Schedule of Net Product Revenues by Product (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 8,497,701 | $ 9,224,638 |
Kristalose | ||
Revenue from External Customer [Line Items] | ||
Revenues | 3,195,609 | 4,315,128 |
Sancuso | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,827,769 | 1,886,793 |
Vibativ | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,605,489 | 1,848,187 |
Caldolor | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,470,699 | 935,043 |
Acetadote | ||
Revenue from External Customer [Line Items] | ||
Revenues | 80,203 | 169,856 |
Vaprisol | ||
Revenue from External Customer [Line Items] | ||
Revenues | 8,662 | 16,008 |
Omeclamox-Pak | ||
Revenue from External Customer [Line Items] | ||
Revenues | 0 | |
Revenues, including adjustments | (1,615) | (2,518) |
RediTrex | ||
Revenue from External Customer [Line Items] | ||
Revenues | 35,556 | (141,045) |
Other revenue | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 275,329 | $ 197,186 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 8,497,701 | $ 9,224,638 |
Sublease income | 155,683 | $ 115,631 |
Omeclamox-Pak | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Grant | Federal Grant Programs | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 100,000 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Nov. 30, 2018 |
Inventory [Line Items] | |||
Inventory reserves, obsolescence and discontinuance | $ 0 | $ 0 | |
Non-current inventories | $ 12,915,896 | $ 12,804,529 | |
Vibativ | Active Pharmaceutical Ingredient ("API") And Work In Progress | |||
Inventory [Line Items] | |||
Non-current inventories | $ 15,600,000 |
Inventories - Schedule of Curre
Inventories - Schedule of Current Inventories (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 12,772,140 | $ 12,619,092 |
Consigned inventory | 231,264 | 149,701 |
Finished goods | 4,240,018 | 4,645,098 |
Total inventories | 17,243,422 | 17,413,891 |
less non-current inventories | (12,915,896) | (12,804,529) |
Total inventories classified as current | $ 4,327,526 | $ 4,609,362 |
Inventories - Schedule of Non-C
Inventories - Schedule of Non-Current Inventories (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | $ 12,915,896 | $ 12,804,529 |
Vibativ | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 6,611,426 | 6,611,426 |
Vibativ | Finished Goods | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 955,969 | 810,454 |
Kristalose | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 3,213,387 | 3,263,516 |
Vaprisol Conivaptan | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 1,173,442 | 1,170,641 |
Sancuso | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 578,804 | 574,502 |
Caldolor | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 31,489 | 0 |
Caldolor | Finished Goods | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 53,326 | 67,307 |
Acetadote | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 25,048 | 33,678 |
Study Drug Ifetroban | Raw Materials | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | 203,383 | 203,383 |
Omeclamox | ||
Inventory, Noncurrent [Line Items] | ||
Non-current inventories | $ 69,622 | $ 69,622 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2024 USD ($) ft² | Dec. 31, 2023 USD ($) | Oct. 24, 2022 | Nov. 15, 2021 ft² renewalTerm $ / ft² |
Lessee, Lease, Description [Line Items] | ||||
Rent increase | 2.50% | |||
Operating lease right-of-use assets | $ 6,521,088 | $ 6,674,394 | ||
Future minimum sublease income under noncancelable operating subleases | 200,000 | |||
Nephron Pharmaceuticals Corporation (“Nephron”) | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 900,000 | |||
1600 West End Avenue Partners, LLC | ||||
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 10 years 2 months 12 days | 12 years 7 months 6 days | ||
Present value of remaining lease payments, percent | 9.40% | |||
CET | ||||
Lessee, Lease, Description [Line Items] | ||||
Present value of remaining lease payments, percent | 9.24% | |||
Wet Laboratory and Office Space | ||||
Lessee, Lease, Description [Line Items] | ||||
Leased area | ft² | 16,903 | |||
Term of contract | 157 months | |||
Base rent per square foot | $ / ft² | 33.06 | |||
Lessee, Operating Lease, Remaining Lease Term | 5 years | |||
Square feet of office space | ft² | 14,200 | |||
Wet Laboratory and Office Space | Broadwest Lease, Five Year Renewal Option | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of renewal terms | renewalTerm | 2 | |||
Renewal term | 5 years |
Leases - Lease Position (Detail
Leases - Lease Position (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 6,521,088 | $ 6,674,394 |
Operating lease current liabilities | 362,244 | 348,092 |
Operating lease non-current liabilities | 5,200,148 | 5,296,247 |
Total | $ 5,562,392 | $ 5,644,339 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities Maturity and Future Minimum Lease Commitments (Details) | Mar. 31, 2024 USD ($) |
Maturity of Lease Liabilities at March 31, 2024 | |
2024 | $ 649,494 |
2025 | 836,100 |
2026 | 909,911 |
2027 | 934,180 |
2028 | 740,791 |
After 2028 | 4,847,401 |
Total minimum lease payments | 8,917,877 |
Less: Interest | 3,355,485 |
Present value of lease liabilities | $ 5,562,392 |
Leases - Rent Expense (Details)
Leases - Rent Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Rent expense | $ 355,064 | $ 234,863 |
Sublease income | $ 155,683 | $ 115,631 |
Shareholders' Equity and Debt (
Shareholders' Equity and Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||||
Mar. 20, 2024 | Sep. 05, 2023 | Nov. 30, 2017 | Mar. 31, 2024 | Mar. 31, 2023 | May 06, 2024 | Dec. 31, 2023 | Dec. 31, 2021 | Aug. 31, 2020 | Jan. 31, 2019 | May 13, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Repurchased shares | $ 246,599 | $ 187,961 | |||||||||
Common shares left to repurchase | 2,800,000 | ||||||||||
Shelf Registration, sale of corporate securities (up to) | $ 5,800,000 | $ 100,000,000 | |||||||||
Expiration period | 3 years | ||||||||||
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | ||||||||||
Long-Term Line of Credit, Noncurrent | 16,084,144 | $ 12,784,144 | |||||||||
WinHealth | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Initial investment in joint ventures | $ 200,000 | ||||||||||
WinHealth | Convertible Debt | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Convertible note | $ 200,000 | ||||||||||
Revolving Credit Facility | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Long-Term Line of Credit, Noncurrent | $ 16,100,000 | $ 12,800,000 | |||||||||
Revolving Credit Facility | Pinnacle Bank | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 25,000,000 | $ 20,000,000 | |||||||||
Additional borrowing capacity | $ 25,000,000 | ||||||||||
Revolving Credit Facility | Pinnacle Bank | Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 20,000,000 | ||||||||||
Revolving Credit Facility | Pinnacle Bank | Line of Credit | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Interest rate spread | 8.125% | ||||||||||
Revolving Credit Facility | Pinnacle Bank | Maximum | Line of Credit | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Variable rate | 2.75% | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock granted in period, shares | 50,500 | 28,250 | |||||||||
Share-based compensation credit | $ 10,000 | ||||||||||
Restricted Stock | Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards, vesting period | 1 year | ||||||||||
Incentive Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock granted in period, shares | 187,600 | 183,250 | |||||||||
Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Authorized amount | $ 10,000,000 | $ 10,000,000 | |||||||||
Repurchase of shares (in shares) | 125,870 | 86,829 | |||||||||
Repurchased shares | $ 246,599 | $ 187,961 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Income Tax Contingency [Line Items] | |
Net operating loss carryforwards | $ 44.1 |
Federal | |
Income Tax Contingency [Line Items] | |
Net operating loss carryforwards | $ 52.1 |
Product Acquisitions And Retu_3
Product Acquisitions And Return Of Product Rights - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||
Jan. 03, 2022 | Oct. 31, 2023 | Jan. 31, 2023 | Apr. 30, 2019 | Nov. 30, 2018 | Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 914,000 | $ 914,000 | |||||
Product Assets And Global Rights - Vibativ | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business upon closing | $ 20,000,000 | ||||||
Milestone payment | $ 5,000,000 | ||||||
Tiered royalty payments, threshold | $ 2,500,000 | ||||||
Additional liability | 3,667,019 | 4,033,373 | |||||
Current portion of accrued contingent consideration | 1,200,000 | ||||||
Non-current portion of accrued contingent consideration | 2,500,000 | ||||||
Product Assets And Global Rights - Vibativ | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Tiered royalty payments (percentage) | 20% | ||||||
U.S. Product Asset Rights - Sancuso | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business upon closing | $ 13,500,000 | ||||||
Milestone payment | $ 500,000 | $ 1,000,000 | |||||
Tiered royalty payments, threshold | 3,500,000 | ||||||
Additional liability | 1,994,000 | $ 2,306,000 | |||||
Current portion of accrued contingent consideration | 1,200,000 | ||||||
Non-current portion of accrued contingent consideration | 800,000 | ||||||
Contingent liability | 3,400,000 | ||||||
Milestone payment remaining | $ 2,000,000 | ||||||
Prepaid expense and other assets | 1,800,000 | ||||||
Inventory | 2,600,000 | ||||||
Goodwill | 30,000 | ||||||
Intangible assets, other than goodwill | 14,100,000 | ||||||
Milestone payable | $ 1,700,000 | ||||||
U.S. Product Asset Rights - Sancuso | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Tiered royalty payments (percentage) | 10% |
Product Acquisitions And Retu_4
Product Acquisitions And Return Of Product Rights - Change in Consideration, Vibativ (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingency Accrual [Roll Forward] | ||
Change in fair value of contingent consideration included in operating expenses | $ (230,430) | $ (267,637) |
Product Assets And Global Rights - Vibativ | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 4,033,373 | |
Cash payment of royalty during the period | (394,426) | |
Change in fair value of contingent consideration included in operating expenses | 28,072 | |
Contingent consideration earned and accrued in operating expenses | 0 | |
Ending balance | $ 3,667,019 |
Product Acquisitions And Retu_5
Product Acquisitions And Return Of Product Rights - Change in Consideration, Sancuso Acquisition (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingency Accrual [Roll Forward] | ||
Change in fair value of contingent consideration included in operating expenses | $ (230,430) | $ (267,637) |
U.S. Product Asset Rights - Sancuso | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 2,306,000 | |
Cash payment of milestones and royalty during the period | (236,275) | |
Change in fair value of contingent consideration included in operating expenses | (258,502) | |
Contingent consideration earned and accrued in operating expenses | 182,777 | |
Ending balance | $ 1,994,000 |