Annual report pursuant to Section 13 and 15(d)

Aytu Divestiture (Tables)

v3.20.1
Aytu Divestiture (Tables)
12 Months Ended
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Summary of Discontinued Operations
The following tables summarizes the assets and liabilities of the discontinued operations as of December 31, 2019 and 2018:

 
 
December 31,
 
 
2019
 
2018
Assets
 
    
 
    
Current assets:
 
 
 
 
Accounts receivable, net
 
$
497,577

 
$
2,335,228

Other receivables
 

 
206,798

Inventory, net
 

 
792,857

Prepaid expenses and other current assets
 

 
797,562

Total current assets of discontinued operations
 
497,577

 
4,132,445

Intangibles assets, net
 

 
27,474,214

Goodwill
 

 
2,002,035

Total long-term assets of discontinued operations
 

 
29,476,249

 
 
 
 
 
Liabilities
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
387,975

 

Accrued expenses and other current liabilities
 
3,503,037

 
5,402,494

Long-term debt, current portion
 

 
1,050,000

Contingent consideration, current portion
 

 
1,097,137

Total current liabilities of discontinued operations
 
3,891,012

 
7,549,631

Long term debt, net of current portion
 

 
14,327,882

Contingent consideration, net of current portion
 

 
6,697,217

Other long-term liabilities
 
1,755,000

 

Total long-term liabilities of discontinued operations
 
1,755,000

 
21,025,099

The following table summarizes the results of discontinued operations for the year ended December 31, 2019 and 2018:

 
 
Year Ended December 31,
 
 
2019
 
2018
Product revenue, net
 
$
10,166,611

 
$
11,298,423

 
 
 
 
 
Operating expenses:
 
 
 
 
Cost of product sales
 
4,288,234

 
4,217,594

General and administrative
 
137,911

 
165,674

Sales and marketing
 
8,521,190

 
7,977,243

Amortization expense
 
2,425,083

 
2,703,896

Impairment of intangible assets
 
1,449,121

 

Change in fair value of contingent consideration
 
247,042

 
169,289

Total operating expenses
 
17,068,581

 
15,233,696

Interest expense, net
 
(793,860
)
 
(827,882
)
Gain on sale of Pediatric Portfolio
 
7,964,924

 

Income (loss) from discontinued operations before tax
 
269,094

 
(4,763,155
)
Income tax expense
 
70,888

 
15,556

Income (loss) from discontinued operations, net of tax (inclusive of gain on sale)
 
$
198,206

 
$
(4,778,711
)

The significant non-cash operating items from the discontinued operations for the years ended December 31, 2019 and 2018 are contained below. There were no non-cash investing items from the discontinued operations for the years ended December 31, 2019 and 2018.
 
 
Year Ended December 31,
 
 
2019
 
2018
Operating activities
 
 
 
 
Amortization
 
$
2,425,083

 
$
2,703,896

Impairment of intangible assets
 
1,449,121

 

Stock-based compensation, excluding amount included within gain on sale of Pediatric Portfolio
 
327,180

 
137,082

Amortization of inventory fair value adjustment associated with acquisition of TRx and Avadel Pediatric Product
 
107,271

 
170,629

Non-cash interest expense
 

 
302,882

Gain on Aytu Divestiture
 
(7,964,924
)
 

Change in fair value of contingent consideration liability
 
247,042

 
169,289