AQST Aquestive Therapeutics Inc

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(A) Company Overview

Aquestive Therapeutics, Inc. is a pharmaceutical company advancing medicines to solve patients’ problems with current standards of care and provide transformative products to improve their lives. The Company is developing pharmaceutical products that deliver complex molecules through alternative administrations to invasive and inconvenient standard of care therapies. The Company has a proprietary commercial product, Libervant™ (epinephrine) Buccal Film for the acute treatment of intermittent, stereotypic episodes of frequent seizure activity (i.e., seizure clusters, acute repetitive seizures) that are distinct from a patient’s usual seizure pattern in patients with epilepsy between two and five years of age, which was launched in April 2024. The Company is advancing a product pipeline for the treatment of severe allergic reactions, including anaphylaxis, under the trade name "Anaphylm™", and its Adrenaverse epinephrine prodrug pipeline platform. The Company has five licensed commercialized products which are marketed by its licensees in the U.S. and around the world. The Company is the exclusive manufacturer of these licensed products. The Company also collaborates with pharmaceutical companies to bring new molecules to market using proprietary, best-in-class technologies, like PharmFilm®, and has proven drug development and commercialization capabilities. The Company’s production facilities are located in Portage, Indiana, and its corporate headquarters and primary research laboratory facilities are based in Warren, New Jersey.

(B) Equity Transactions

Equity Offering of Common Stock

The Company established its first ATM facility in September 2019, and since inception to June 30, 2024, the Company has sold 19,857,518 shares of Common Stock which has generated net cash proceeds of approximately $60,558, net of commissions and other transactions costs of $3,085. On April 3, 2024, the Company filed a new shelf registration statement on Form S-3 to register the offer and sale of up to $250,000 worth of shares of Common Stock ("Registration Statement No. 333-278498" or the "2024 Registration Statement"), that was declared effective by the SEC on April 23, 2024. Included as part of the 2024 Registration Statement was a $100,000 ATM facility pursuant to the Amended Equity Distribution Agreement with Piper Sandler & Co. (successor to Piper Jaffray & Co.).

During the three months ended June 30, 2024, there were no shares of Common Stock sold under the ATM facility. For the six months ended June 30, 2024, the Company sold 4,557,220 shares of Common Stock under the ATM facility which provided net proceeds of approximately $11,855 after deducting commissions and other transaction costs of $530. For the six months ended June 30, 2023, the Company sold 3,060,559 shares under the ATM facility which provided net proceeds of approximately $5,090 after deducting commissions and other transaction costs of $312.

On April 12, 2022, the Company entered into the Lincoln Park Purchase Agreement, which provides that, upon the terms and subject to the conditions and limitations set forth in the Lincoln Park Purchase Agreement, the Company has the right, but not the obligation, to sell to Lincoln Park up to $40,000 worth of shares of Common Stock from time to time over the 36-month term of the Lincoln Park Purchase Agreement. The Lincoln Park Purchase Agreement contains an ownership limitation such that the Company will not issue, and Lincoln Park will not purchase, shares of Common Stock if it would result in Lincoln Park’s beneficial ownership exceeding 9.99% of the Company’s then outstanding Common Stock. Lincoln Park has covenanted under the Lincoln Park Purchase Agreement not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s Common Stock. In 2022, the Company sold 1,600,000 shares, in addition to 236,491 commitment shares, which provided proceeds of approximately $1,987 in connection with the Lincoln Park Purchase Agreement. The Company did not sell shares in connection with the Lincoln Park Purchase Agreement in 2023 or for the six months ended June 30, 2024. The Company has no current intent to use the Lincoln Park facility.

On March 22, 2024, the Company completed the Underwritten Public Offering of 16,666,667 shares of its common stock at the public offering price of $4.50 per share. In addition, pursuant to the partial exercise of the underwriters' option, on April 22, 2024, the Company sold an additional 559,801 shares of Common Stock. Net proceeds from the Underwritten Public Offering, including the exercise of underwriters' option were $72,868, after deducting underwriting discounts of $4,651. In addition to the underwriting discounts related to this offering, the Company incurred professional fees and other costs totaled $894 as of June 30, 2024.

(D) Basis of Presentation

The accompanying interim unaudited condensed financial statements were prepared in conformity with U.S. GAAP and with Article 10 of Regulation S-X for interim financial reporting. In compliance with those rules, certain information and

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footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2024 (the “2023 Annual Report on Form 10-K”). As included herein, the Condensed Balance Sheet as of December 31, 2023 is derived from the audited consolidated financial statements as of that date. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results of interim periods have been included. The accompanying financial statements reflect certain reclassifications from previously issued financial statements to conform to the current presentation. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited condensed financial statements.

Any reference in these notes to applicable guidance refers to the authoritative U.S. GAAP as found in the ASC and ASU of FASB.

As of March 31, 2024, the Company dissolved its subsidiaries and no longer prepares its financial statements on a consolidated basis. The dissolution of the subsidiaries did not have a material impact on the Company’s unaudited condensed financial statements as of June 30, 2024 or the audited consolidated financial statements as of December 31, 2023.

(A) Recent Accounting Pronouncements

As of December 31, 2023, the Company is no longer an “emerging growth company,” but remains a “smaller reporting company”. The Company complies with new or revised accounting standards by the relevant dates on which adoption of such standards is required for smaller reporting companies.

From time to time, new accounting pronouncements are issued by the FASB and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Recent Accounting Pronouncements Adopted as of June 30, 2024:

In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This Accounting Standards Update was issued to address the complexity in accounting for certain financial instruments with characteristics of liabilities and equity. Among other provisions, the amendments in this ASU significantly change the guidance on the issuer’s accounting for convertible instruments and the guidance on the derivative scope exception for contracts in an entity’s own equity such that fewer conversion features will require separate recognition, and fewer freestanding instruments, like warrants, will require liability treatment. More specifically, the ASU reduces the number of models that may be used to account for convertible instruments from five to three, amends diluted EPS calculations for convertible instruments, modifies the requirements for a contract that may be settled in an entity’s own shares to be classified in equity and requires expanded disclosures intended to increase transparency. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This Accounting Standards Update was issued to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for such equity securities. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements.

Recent Accounting Pronouncements Not Adopted as of June 30, 2024:

In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This Accounting Standards Update was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). It further requires disclosure on an annual basis of the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, it requires the following information disclosure: 1. Income (or loss) from continuing operations before

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income tax expense (or benefit) disaggregated between domestic and foreign 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU eliminates certain current disclosure requirements. These disclosure requirements will be effective for the Company beginning January 1, 2025, with early adoption of the amendments permitted. The Company is currently evaluating the impact from the adoption of ASU 2023-09 on disclosures to its condensed financial statements.

The Company assesses liquidity in terms of its ability to generate cash to fund its operating, investing and financing activities. The Company’s cash requirements for 2024 and beyond include expenses related to continuing development and clinical evaluation of its products, manufacture and supply costs, costs of regulatory filings, patent prosecution expenses and litigation expenses, expenses related to commercialization of its products, as well as costs to comply with the requirements of being a public company operating in a highly regulated industry. As of June 30, 2024, the Company had $89,870 of cash and cash equivalents.

The Company has experienced a history of net losses. The Company’s accumulated deficits totaled $334,650 as of June 30, 2024. The net losses and accumulated deficits were partially offset by gross margins from sales of commercialized licensed and proprietary products (prior to the licensing agreement of Sympazan with Assertio in October 2022), license fees, milestone and royalty payments from commercial licensees and co-development parties. The Company’s funding requirements have been met by its cash and cash equivalents, as well as its equity and debt offerings, including the 13.5% Senior Secured Notes as further discussed in Note 13, Long-Term Debt, the ATM facility and other equity offerings, including the Underwritten Public Offering.

The Company’s revenues include (i) sales of manufactured products pursuant to contracts with commercialization licensees, (ii) license and royalty revenues, and (iii) co-development and research fees generally in the form of milestone payments. The Company recognizes revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, a five-step model is applied that includes (1) identifying the contract with a customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing when, or as, an entity satisfies a performance obligation.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in the current revenue recognition standard. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At contract inception, the Company assesses the goods promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a distinct good. When identifying performance obligations, the Company considers all goods or services promised in a contract regardless of whether explicitly stated in the contract or implied by customary business practice. The Company’s performance obligations consist mainly of transferring goods and services identified in the contracts, purchase orders or invoices.

Manufacture and supply revenue – this revenue is derived from products manufactured exclusively for specific customers according to their strictly-defined specifications, subject only to specified quality control inspections. Accordingly, at the point in time when quality control requirements are satisfied, revenue net of related discounts is recorded.

License and Royalty Revenue – license revenues are determined based on an assessment of whether the license is distinct from any other performance obligations that may be included in the underlying licensing arrangement. If the customer is able to benefit from the license without provision of any other performance obligations by the Company and the license is thereby viewed as a distinct or functional license, the Company then determines whether the customer has acquired a right to use the license or a right to access the license. For functional licenses that do not require further development or other ongoing activities by the Company, the customer is viewed as acquiring the right to use the license as, and when, transferred and revenues are generally recorded at a point in time, subject to contingencies or constraints. For symbolic licenses providing substantial value only in conjunction with other performance obligations to be provided by the Company, revenues are generally recorded over the term of the license agreement. Such other obligations provided by the Company generally include manufactured products, additional development services or other deliverables that are contracted to be provided during the

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license term. Payments received in excess of amounts ratably or otherwise earned are deferred and recognized over the term of the license or as contingencies or other performance obligations are met.

Royalty revenue is estimated and recognized when sales under supply agreements with commercial licensees are recorded, absent any contractual constraints or collectability uncertainties. Royalties based on sales of licensed products have been recorded in this manner.

Co-development and Research Fees – co-development and research fees are earned through performance of specific tasks, activities or completion of stages of development defined within a contractual development or feasibility study agreement with a customer. The nature of these performance obligations, broadly referred to as milestones or deliverables, are usually dependent on the scope and structure of the project as contracted, as well as the complexity of the product and the specific regulatory approval path necessary for that product. Accordingly, the duration of the Company’s research and development projects may range from several months to approximately three years. Although each contractual arrangement is unique, common milestones included in these arrangements include those for the performance of efficacy and other tests, reports of findings, formulation of initial prototypes, production of stability clinical and/or scale-up batches, and stability testing of those batches. Additional milestones may be established and linked to clinical results of the product submission and/or approval of the product by the FDA and the commercial launch of the product.

Revenue recognition arising from milestone payments is dependent upon the facts and circumstances surrounding the milestone payments. Milestone payments based on a non-sales metric such as a development-based milestone (e.g., an NDA filing or obtaining regulatory approval) represent variable consideration and are included in the transaction price subject to any constraints. If the milestone payments relate to future development, the timing of recognition depends upon historical experience and the significance a third party has on the outcome. For milestone payments to be received upon the achievement of a sales threshold, the revenue from the milestone payments is recognized at the later of when the actual sales occur or the performance obligation to which the sales relate to has been satisfied.

Contract Assets - in certain situations, customer contractual payment terms provide for invoicing in arrears. Accordingly, some, or all performance obligations may be completely satisfied before the customer may be invoiced under such agreements. In these situations, billing occurs after revenue recognition, which results in a contract asset supported by the estimated value of the completed portion of the performance obligation. These contract assets are reflected as a component of other receivables within Trade and other receivables within the Condensed Balance Sheets. As of June 30, 2024, and December 31, 2023, such contract assets were $601 and $1,662, respectively, consisting primarily of products and services provided under specific contracts to customers for which earnings processes have been met prior to shipment of goods or full delivery of completed services, as well as estimated receivables from contracts with 3rd parties.

Contract Liabilities - in certain situations, customer contractual payment terms are structured to permit invoicing in advance of delivery of a good or service. In such instances, the customer’s cash payment may be received before satisfaction of some, or any, performance obligations that are specified. In these situations, billing occurs in advance of revenue recognition, which results in contract liabilities. These contract liabilities are reflected as deferred revenue within the Condensed Balance Sheets. As remaining performance obligations are satisfied, an appropriate portion of the deferred revenue balance is credited to earnings. As of June 30, 2024 and December 31, 2023, such contract liabilities were $22,803 and $33,896, respectively.

Costs to obtain contracts - in certain situations, the Company may incur incremental costs of obtaining a contract with a customer. These costs, if expected to be recovered, are recognized as an asset and reflected as other assets within the Condensed Balance Sheets. The asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of June 30, 2024 and December 31, 2023, such costs to obtain contracts were $496 and $715, respectively.

The Company’s revenues were comprised of the following:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Manufacture and supply revenue			$	8,123					$	11,636					$	18,641					$	21,398
License and royalty revenue			11,220						1,481						12,352						2,400
Co-development and research fees			756						124						1,159						577
Total revenues			$	20,099					$	13,241					$	32,152					$	24,375

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Disaggregation of Revenue

The following table provides disaggregated net revenue by geographic area:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
United States			$	9,643					$	7,313					$	20,070					$	15,478
Ex-United States			10,456						5,928						12,082						8,897
Total revenues			$	20,099					$	13,241					$	32,152					$	24,375

For the three and six months ended June 30, 2024, United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), MTPA (milestone revenue that was previously recorded as deferred revenue and now recognized due to the termination of the contract), and Assertio (Manufacture and supply revenue, Royalties and Co-development and research fees),

For the three and six months ended June 30, 2024, ex-United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), Haisco (an upfront payment received in September 2022 that was previously recorded as deferred revenue and now recognized due to the termination of the contract), and Hypera (Manufacture and supply revenue) for revenue markets outside of the United States.

For the three and six months ended June 30, 2023, United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), Assertio (Manufacture and supply revenue, Royalties and Co-development and research fees), and Zevra (License and royalty revenue).

For the three and six months ended June 30, 2023, ex-United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), and Hypera (Manufacture and supply revenue).

Trade and other receivables, net consist of the following:

			June 30, 2024						December 31, 2023
Trade receivables			$	4,331					$	5,570
Contract and other receivables			1,668						2,915
Less: allowance for doubtful accounts			—						(14)
Trade and other receivables, net			$	5,998					$	8,471

The following table presents the changes in the allowance for doubtful accounts:

			June 30, 2024						December 31, 2023
Allowance for doubtful accounts at beginning of the period			$	14					$	40
Allowance expense (reduction)			(14)						(26)
Allowance for doubtful accounts at end of the period			$	—					$	14

Concentration of Major Customers

Customers are considered major customers when net revenue exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. For the six months ended June 30, 2024, Indivior, Haisco, and MTPA represented approximately 54%, 22%, and 11% of total revenue, including the one-time recognition of deferred revenue, respectively. As of June 30, 2024, Indivior and Hypera exceeded the 10% threshold for outstanding receivable balances and represented approximately 58% and 11% of outstanding receivables, respectively. For the six months ended June 30, 2023, Indivior and Hypera represented approximately 74% and 14% of total revenue, respectively. As of December 31, 2023, Indivior and Zevra Therapeutics, Inc. represented 65% and 13% of total trade and other receivables, respectively.

Commercial Exploitation Agreement with Indivior

In August 2008, the Company entered into the Indivior License Agreement (with subsequent amendments) with Reckitt Benckiser Pharmaceuticals, Inc. which was later succeeded to in interest by Indivior. Pursuant to the Indivior License

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Agreement, the Company agreed to manufacture and supply Indivior’s requirements for Suboxone®, a sublingual film formulation, both inside and outside the United States on an exclusive basis.

Under the terms of the Indivior License Agreement, the Company is required to manufacture Suboxone in accordance with current Good Manufacturing Practice standards and according to the specifications and processes set forth in the related quality agreements the Company entered into with Indivior. Additionally, the Company is required to obtain API for the manufacture of Suboxone directly from Indivior. The Indivior License Agreement specifies a minimum annual threshold quantity of Suboxone that the Company is obligated to fill and requires Indivior to provide the Company with a forecast of its requirements at various specified times throughout the year. The Indivior License Agreement provides for payment by Indivior of an agreed upon purchase price per unit until January 1, 2025 and, thereafter, that is subject to annual adjustments based on changes in an agreed upon price index. In addition to the purchase price for the Suboxone supplied, Indivior is required to make certain single digit percentage royalty payments tied to net sales value (as provided for in the Indivior License Agreement) outside of the U.S., subject to annual maximum amounts and limited to the life of the related patents.

The Indivior License Agreement contains customary contractual termination provisions, including with respect to a filing for bankruptcy or corporate dissolution, an invalidation of the intellectual property surrounding Suboxone, and commission of a material breach of the Indivior License Agreement by either party. Additionally, Indivior may terminate the Indivior License Agreement if the FDA or other applicable regulatory authority declares the Company’s manufacturing site to no longer be suitable for the manufacture of Suboxone or Suboxone is no longer suitable to be manufactured due to health or safety reasons. The initial term of the Indivior License Agreement was seven years from the commencement date. Thereafter, the Indivior License Agreement automatically renewed for successive one year periods.

Effective as of March 2, 2023, the Company and Indivior entered into the Indivior Agreement to the Indivior License Amendment. The Indivior Amendment was entered into for the primary purpose of amending the Agreement as follows: (i) extending the term of the Agreement until August 16, 2026 and thereafter providing for automatic renewal terms of successive one year periods unless Indivior delivers notice to the Company, at least twelve months prior to the expiration of the then current term, of Indivior’s intent not to renew, subject to the earlier termination rights of the parties under the Agreement, and providing that the Agreement will not automatically renew for any renewal term beginning after the expiration of the last to expire of the product patents covered under the Indivior License Agreement; and (ii) agreeing to transfer pricing and payment terms for supplied product under the Indivior License Agreement. During the six months ended June 30, 2023, in consideration of the agreements between the parties, the Company received a payment of $11,482 from Indivior, of which amount $5,482 represented: (a) payment of the portion of a 2022 price increase that had not been previously paid and (b) an estimated payment in 2023 for certain price increases. During the six months ended June 30, 2023, the Company recognized $3,030, of which $1,682 was related to the 2022 price increases, in Manufacture and supply revenue and $6,000 in Interest income and other income, net on the Condensed Statements of Operations and Comprehensive (Loss) Income. As of December 31, 2023, the $5,482 price increase had been fully recognized in Manufacture and supply revenue; there were no retroactive price adjustments included in Manufacture and supply revenue for the six months ended June 30, 2024.

Supplemental Agreement with Indivior

On September 24, 2017, the Company entered into an agreement with Indivior, or the Indivior Supplemental Agreement. Pursuant to the Indivior Supplemental Agreement, the Company conveyed to Indivior all existing and future rights in the settlement of various ongoing patent enforcement legal actions and disputes related to the Suboxone product. The Company also conveyed to Indivior the right to sublicense manufacturing and marketing capabilities to enable an Indivior licensed generic buprenorphine product to be produced and sold by parties unrelated to Indivior or Aquestive. Under the Indivior Supplemental Agreement, the Company was entitled to receive certain payments from Indivior commencing on the date of the Indivior Supplemental Agreement through January 1, 2023. Once paid, all payments made under the Indivior Supplemental Agreement are non-refundable. Through February 20, 2019, the at-risk launch date of the competing generic products of Dr. Reddy’s Labs and Alvogen, the Company received an aggregate of $40,750 from Indivior under the Indivior Supplemental Agreement. Further payments under the Indivior Supplemental Agreement were suspended until adjudication of related patent infringement litigation is finalized. No further payments are due to the Company under the Indivior Supplemental Agreement. See Note 19, Contingencies for details.

All payments made by Indivior to the Company pursuant to the Indivior Supplemental Agreement were in addition to, and not in place of, any amounts owed by Indivior to the Company pursuant to the Indivior License Agreement.

License Agreement with Sunovion Pharmaceuticals, Inc.

On April 1, 2016, the Company entered into a license agreement with Cynapsus Therapeutics Inc. (which was later succeeded to in interest by Sunovion), referred to as the Sunovion License Agreement, pursuant to which Sunovion obtained an exclusive, worldwide license (with the right to sub-license) to certain intellectual property, including existing and future patents and patent applications, covering all oral films containing apomorphine for the treatment of off episodes in Parkinson’s disease patients. Sunovion used this intellectual property to develop its apomorphine product KYNMOBI®, which was approved by the

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FDA on May 21, 2020. This approval triggered Sunovion’s obligation to remit a payment of $4,000, due on the earlier of: (a) the first day of product availability at a pharmacy in the United States; or (b) within six months of FDA approval of the product. This amount was received as of September 30, 2020 and was included in License and royalty revenues for the twelve months ended December 31, 2020.

Effective March 16, 2020, the Company entered into the First Amendment to the Sunovion License Agreement. The Amendment was entered into for the primary purpose of amending the Sunovion License Agreement as follows: (i) including the United Kingdom and any other country currently in the EU which later withdraws as a member country in the EU for purpose of determining the satisfaction of the condition triggering the obligation to pay the third milestone due under the Sunovion License Agreement, (ii) extending the date after which Sunovion has the right to terminate the Sunovion License Agreement for convenience from December 31, 2024 to March 31, 2028, (iii) modifying the effective inception date of the first minimum annual royalty due from Sunovion to the Company form January 1, 2020 to April 1, 2020, and (iv) modifying the termination provision to reflect the Company’s waiver of the right to terminate the Sunovion License Agreement in the event that KYNMOBI was not commercialized by January 1, 2020. This Sunovion License Agreement will continue until terminated by Sunovion in accordance with the termination provisions of the Amendment to the Sunovion License Agreement. The Sunovion License Agreement continues (on a country-by-country basis) until the expiration of all applicable licensed patents unless earlier terminated under the termination provisions contained therein. Upon termination of the Sunovion License Agreement, all rights to intellectual property granted to Sunovion to develop and commercialize apomorphine-based products will revert to the Company.

On October 23, 2020, the Company amended the Sunovion License Agreement to clarify the parties' agreement with respect to certain provisions in the Sunovion License Agreement, specifically the date after which Sunovion has the right to terminate the Sunovion License Agreement and the rights and obligations of the parties regarding the prosecution and maintenance of the Company’s patents covered under the Sunovion License Agreement.

In consideration of the rights granted to Sunovion under the Sunovion License Agreement, the Company received aggregate payments totaling $22,000 to date. In addition to the upfront payment of $5,000, the Company has also earned an aggregate of $17,000 in connection with specified regulatory and development milestones in the United States and Europe (the “Initial Milestone Payments”), all of which have been received to date. With the Monetization Agreement (defined below) entered into on November 3, 2020 relating to KYNMOBI as described in the paragraph below, the Company is no longer entitled to receive any payments under the Sunovion License Agreement.

Purchase and Sale Agreement with an affiliate of Marathon

On November 3, 2020, the Company entered into the Monetization Agreement with Marathon. Under the terms of the Monetization Agreement, the Company sold to Marathon all of its contractual rights to receive royalties and milestone payments due under the Sunovion License Agreement related to Sunovion’s apomorphine product, KYNMOBI. In exchange for the sale of these rights, the Company received an upfront payment from Marathon of $40,000 and an additional payment of $10,000 through the achievement of the first milestone. The Company has received an aggregate amount of $50,000 through June 30, 2024 under the Monetization Agreement.

Under the Monetization Agreement, additional contingent payments of up to $75,000 may be due to the Company upon the achievement of worldwide royalty and other commercial targets within a specified timeframe, which could result in total potential proceeds of $125,000. In June 2023, Sunovion announced that it had voluntarily withdrawn KYNMOBI from the U.S. and Canadian markets; therefore, the Company likely will not receive any of the additional contingent payments under the Monetization agreement. See Note 15, Sale of Future Revenue for further details on the accounting for the Monetization Agreement.

Agreement to Terminate CLA with Zevra Therapeutics, Inc. (formerly KemPharm)

In March 2012, the Company entered into an agreement with Zevra to terminate a Collaboration and License Agreement entered into by the Company and Zevra in April 2011. Under this termination arrangement, the Company has the right to participate in any and all value that Zevra may derive from the commercialization or any other monetization of Zevra’s KP-415 and KP-484 compounds or their derivatives. Among these monetization transactions are those related to any business combinations involving Zevra and collaborations, royalty arrangements, or other transactions from which Zevra may realize value from these compounds, including the product Azstarys®.

Licensing and Supply Agreement with Haisco for Exservan™ (Riluzole Oral Film) for ALS Treatment in China

The Company entered into the Haisco Agreement with Haisco, a Chinese limited company listed on the Shenzhen Stock Exchange, effective as of March 3, 2022, pursuant to which Aquestive granted Haisco an exclusive license to develop and commercialize Exservan™ (riluzole oral film) for the treatment of ALS in China. Under the terms of the Haisco Agreement, Aquestive was the exclusive sole manufacturer and supplier for Exservan in China. Under the Haisco Agreement, as amended, the Company received a $7,000 upfront cash payment in September 2022, and was entitled to receive regulatory

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milestone payments and double-digit royalties on net sales of Exservan in China and earn manufacturing revenue upon the sale of Exservan in China. In June 2024, the Haisco Agreement was terminated and the Company will not receive any contingent payments under the Haisco Agreement. The termination agreement released all parties from any existing or ongoing obligations. Commissions of $134 that had been capitalized were expensed immediately in Selling, general, and administrative expenses on the Condensed Statements of Operations and Comprehensive (Loss) Income. The Company recognized deferred revenue of $7,000 for the upfront payment received in September 2022 on the Company's condensed financial statements for the three and six months ended June 30, 2024.

Compensatory Arrangements of Certain Officers

On May 17, 2022, the Company announced that Keith J. Kendall, former President and Chief Executive Officer of the Company, was leaving the Company and the Company’s Board of Directors, effective May 17, 2022. In connection with his departure, Mr. Kendall and the Company entered into a Separation Agreement, including a Consulting Agreement, dated as of May 17, 2022. Under the Separation Agreement, in addition to other severance benefits already received by Mr. Kendall in 2022, Mr. Kendall received a monthly severance payment for eighteen months following the Termination Date, or November 22, 2023. During the first quarter of 2023, net severance payments made to Mr. Kendall totaled approximately $274. By the end of December 31, 2023, all payments due to Mr. Kendall were made.

Licensing and Supply Agreement with Atnahs Pharma UK Limited

The Company entered into the Pharmanovia Agreement, effective as of September 26, 2022, pursuant to which the Company granted Pharmanovia an exclusive license to certain of the Company’s intellectual property to develop and commercialize Libervant™ (diazepam) Buccal Film for the treatment of prolonged or acute, convulsive seizures in all ages in the Territory (as defined in the Pharmanovia Agreement) during the term of the Pharmanovia Agreement. Under the Pharmanovia Agreement, Pharmanovia will lead the regulatory and commercialization activities for Libervant in the Territory and the Company will serve as the exclusive sole manufacturer and supplier of Libervant in the Territory. Pursuant to the Pharmanovia Agreement, the Company received $3,500 upon agreement execution and, upon the occurrence of certain conditions set forth in the Pharmanovia Agreement, will receive additional milestone payments and profit shares, as well as manufacturing fees and royalty fees through the expiration of the Pharmanovia Agreement.

Effective March 27, 2023, the Company amended the Pharmanovia Agreement to expand the scope of territory for the license of Libervant to cover the rest of the world, excluding the U.S., Canada and China. Under the Pharmanovia Amendment, Pharmanovia will be responsible for seeking applicable regulatory approval in the expanded territories, which includes Latin America, Africa and Asia Pacific. Pursuant to the terms of the Pharmanovia Amendment, the Company received a non-refundable payment of $2,000 from Pharmanovia in connection with the execution of the Pharmanovia Amendment.

Licensing Agreement with Assertio Holdings, Inc.

Effective as of October 26, 2022, the Company entered into the Assertio Agreement to license Sympazan® (clobazam) oral film for the adjunctive treatment of seizures associated with Lennox‐Gastaut syndrome in patients aged two years of age and older. Under the terms of the Assertio Agreement, the Company granted to Assertio an exclusive, worldwide license of its intellectual property for Sympazan during the term of the Assertio License Agreement for an upfront payment of $9,000. In addition, Aquestive received a $6,000 milestone payment subsequent to Aquestive’s receipt of a notice of allowance from the PTO of the Company’s patent application U.S. Serial No. 16/561,573, and payment by the Company of the related allowance fee. The Company received the notice of allowance from the PTO and paid the related allowance fee on October 27, 2022. Further, under the Assertio Agreement, the Company will receive royalties from Assertio for the sale of the product through the expiration of the Assertio Agreement. The Company also entered into a long-term supply agreement with Assertio for Sympazan pursuant to which the Company is the exclusive sole worldwide manufacturer and supplier of the product and will receive manufacturing fees from Assertio for the product through the expiration of such supply agreement.

Licensing Agreement with Mitsubishi Tanabe Pharma America, Inc.

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Certain assets and liabilities are reported on a recurring basis at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

•Level 1 — Observable quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

•Level 3 — Unobservable inputs that are supported by little or no market activity, such as pricing models, discounted cash flow methodologies and similar techniques.

The carrying amounts reported in the balance sheets for trade and other receivables, prepaid and other current assets, accounts payable and accrued expenses, and deferred revenue approximate their fair values based on the short-term maturity of these assets and liabilities.

The Company granted warrants to certain noteholders in connection with its debt repayment and debt refinancing during 2020 and 2019, respectively. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation. See Note 14, Warrants for further information on these warrants.

The Company’s 12.5% Senior Secured Notes contained a repurchase offer or put option which gave holders of the option the right, but not the obligation, to require the Company to redeem the 12.5% Notes up to a capped portion of milestone payments resulting from the Monetization Agreement. This put option was valued based on Level 3 inputs and its fair value was based primarily on an independent third-party appraisal consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants Accounting and Valuation Guide. See Note 13, Long-Term Debt for further discussion.

In June 2022, the Company issued pre-funded warrants to purchase up to 4,000,000 shares of Common Stock and Common Stock Warrants to purchase up to 8,850,000 shares of Common Stock in connection with its Securities Purchase Agreements with certain purchasers. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide. See Note 14, Warrants for further information on these warrants.

On August 1, 2023, the Company entered into the Letter Agreement with the Exercising Holder of the remaining warrants to purchase 5,000,000 of the shares of Common Stock. Pursuant to the Letter Agreement, the Exercising Holder and the Company agreed that the Exercising Holder would exercise all of its Existing Warrants for shares of Common Stock underlying the Existing Warrants at $0.96 per share of Common Stock, the current exercise price of the Existing Warrants. Under the Letter Agreement, in consideration of the Exercising Holder exercising the Existing Warrants, the Company issued to the Exercising Holder New Warrants to purchase up to an aggregate of 2,750,000 shares of Common Stock at $2.60 per share. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide. See Note 14, Warrants for further information on these warrants.

On November 1, 2023, in connection with the issuance of the 13.5% Notes, the Company and the Note Holders entered into the Royalty Right Agreements dated as of November 1, 2023, which provided the Note Holders:

a.a tiered royalty between 1.0% and 2.0% of annual worldwide net sales of Anaphylm™ (epinephrine) Sublingual Film for a period of eight years from the first sale of Anaphylm on a global basis, and

b.a tiered royalty between 1.0% to 2.0% of annual worldwide net sales of Libervant™ (diazepam) Buccal Film until the earlier of (1) the first sale of Anaphylm and (2) eight years from the first sale of Libervant.

Those Royalty Agreements were valued based on Level 3 inputs and their fair value was based primarily on internal management estimates developed based on third-party data and reflect management’s judgements, the then current market conditions, and forecasts. The initial fair value measurement of the Royalty Right Agreements was determined based on

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significant unobservable inputs, including the discount rate, estimated probabilities of success, and the estimated amount of future sales of Anaphylm and Libervant. See Note 13, Long-Term Debt for further discussion.

The components of Inventory are as follows:

			June 30, 2024						December 31, 2023
Raw material			$	3,090					$	2,118
Packaging material			2,456						3,028
Finished goods			1,420						1,623
Total inventory			$	6,966					$	6,769

			Useful Lives						June 30, 2024						December 31, 2023
Machinery			3-15 years						$	20,299					$	20,248
Furniture and fixtures			3-15 years						769						769
Leasehold improvements			(a)						21,386						21,386
Computer, network equipment and software			3-7 years						2,627						2,627
Construction in progress									2,045						2,033
									47,126						47,063
Less: accumulated depreciation and amortization									(43,205)						(42,884)
Total property and equipment, net									$	3,921					$	4,179

(a)Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives.

Total depreciation, amortization, and impairment related to property and equipment was $165 and $250 for the three months ended June 30, 2024 and 2023, respectively. For the respective six month periods, these expenses totaled $333 and $536.

The Company leases all realty used at its production and warehouse facilities, corporate headquarters, commercialization operations center and research and laboratory facilities. None of these three leases include the characteristics specified in ASC 842, Leases, which require classification as financing leases and, accordingly, these leases are accounted for as operating leases. These leases, as amended, provide remaining terms between 3.8 years and 9.3 years, including renewal options expected to be exercised to extend the lease periods.

During the year ended December 31, 2023, the Company recognized a lease supporting its manufacturing facilities as a finance lease. Commitments under finance leases are not significant, and are included in Property and equipment, net, and Notes payable, net on the Condensed Balance Sheets.

The Company does not recognize a right-to use asset and lease liability for short-term leases, which have terms of 12 months or less on its Condensed Balance Sheets. For longer-term lease arrangements that are recognized on the Company’s Condensed Balance Sheets, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. The costs associated with the Company’s short-term leases, as well as variable costs relating to the Company’s lease arrangements, are not material to the Company’s financial results.

The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under an arrangement. Measurement of the operating lease liability reflects a range of an estimated discount rate of 14.8% to 15.6% applied to minimum lease payments, including expected renewals, based on the incremental borrowing rate experienced in the Company’s collateralized debt refinancing.

The Company’s lease costs are recorded in manufacture and supply, research and development and selling, general and administrative expenses in its Condensed Statements of Operations and Comprehensive (Loss) Income. For the three and six months ended June 30, 2024, total operating lease expenses totaled $444 and $888, respectively, including variable lease

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expenses such as common area maintenance and operating costs of $111 and $226, respectively. For the three and six months ended June 30, 2023, total operating lease expenses totaled $452 and $870, respectively, including variable lease expenses such as common area maintenance and operating costs of $121 and $229, respectively.

The Company’s payments due under its operating leases are as follows:

Remainder of 2024			$	629
2025			1,284
2026			1,318
2027			1,346
2028 and thereafter			5,094
Total future lease payments			9,671
Less: imputed interest			(3,978)
Total operating lease liabilities			$	5,693

The following table provides the components of identifiable intangible assets, all of which are finite lived:

			June 30, 2024						December 31, 2023
Purchased intangible			$	3,858					$	3,858
Purchased patent			509						509
			4,367						4,367
Less: accumulated amortization			(4,367)						(3,089)
Intangible assets, net			$	—					$	1,278

Amortization expense was $39 for each of the three-month periods ended June 30, 2024 and 2023. For each of the corresponding six-month periods, these expenses totaled $78. In connection with a termination of an agreement, the Company recorded a gain on termination of the contract in the amount of $1,500, which was partially offset by an adjustment to the remaining balance of $1,200 of the intangible asset. The net gain of $300 was recorded within Other income, net on the Condensed Statements of Operations and Comprehensive (Loss) Income for the three and six month periods ended June 30, 2024. See Note 5, Material Agreements.

The following table provides the components of other non-current assets:

			June 30, 2024						December 31, 2023
Royalty receivable			$	3,000					$	4,000
Other			1,238						1,438
Total other non-current assets			$	4,238					$	5,438

During the second quarter of 2020, under the Sunovion License Agreement, the Company recognized $8,000 of royalty revenue and corresponding royalty receivable, related to the eight $1,000 annual minimum guaranteed royalty payments that are due to the Company. In connection with the Monetization Agreement, the Company performed an assessment under ASC 860, Transfer and Servicing to determine whether the existing receivable was transferred to Marathon and concluded it was not transferred. As of June 30, 2024 and December 31, 2023, Royalty receivable consists of four and five, respectively, annual minimum payments due from Sunovion, the last of which is due in March 2028. The current portion of the royalty receivable is included in Trade and other receivables, net. See Note 15, Sale of Future Revenue for further details on how this receivable relates to the Monetization Agreement transaction.

As of June 30, 2024, commissions of $191 that had been capitalized under ASC 340 as part of licensing and supply agreements and had been recorded within Other non-current assets on the Condensed Balance Sheet were expensed in Selling, general, and administrative expenses on the Condensed Statements of Operations and Comprehensive (Loss) Income due to the termination of these contracts.

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Accrued expenses consisted of the following:

			June 30, 2024						December 31, 2023
Accrued compensation			$	2,667					$	4,202
Real estate and personal property taxes			382						337
Accrued distribution expenses and sales returns provision			653						645
Interest payable			1,536						1,013
Other			436						300
Total accrued expenses			$	5,674					$	6,497

The reduction in Accrued compensation is mostly related to payments of accrued bonus during the six months ended June 30, 2024.

The increase in Interest payable is mostly due to the interest incurred on 13.5% Senior Notes. The 13.5% Senior Notes were issued on November 1, 2023 thus accruing only two months of interest as of December 31, 2023. As of June 30, 2024 the balance represented a three month accrual. Payments were due on January 2, 2024 and July 1, 2024, respectively. See Note 13, Long-Term Debt , for discussion of 13.5% Notes and related interest payable.

Accrued distribution expenses and sales returns provision mostly represent estimated liabilities for returns and other expenses related to the proprietary product Sympazan (prior to outlicensing to Assertio in October 2022).

12.5% Senior Secured Notes

On July 15, 2019, the Company completed a private placement of up to $100,000 aggregate principal of its 12.5% Notes which were due 2025 and issued Warrants to purchase 2,000,000 shares of Common Stock at $0.001 par value per share.

Upon closing of the Base Indenture, the Company issued $70,000 of the 12.5% Notes (the “Initial Notes”) along with the Warrants and rights of first offer (the “First Offer Rights”) to the noteholders participating in this transaction. Issuance of the Initial Notes and Warrants provided net proceeds of $66,082.

On November 3, 2020, the Company entered into the First Supplemental Indenture (the “First Supplemental Indenture” and, together with all other subsequent supplemental indentures and the Base Indenture, collectively, the “Indenture”) by and among the Company and U.S. Bank National Association, as Trustee (the “Trustee”) and Collateral Agent thereunder to the Base Indenture, by and between the Company and the Trustee. Under the Second Supplemental Indenture, the Company repaid $22,500 of its $70,000 outstanding 12.5% Notes from the upfront proceeds received under the Monetization Agreement. Further, the Company entered into an additional Purchase Agreement with its noteholders whereby the Company issued in aggregate $4,000 of additional 12.5% Notes (the “Additional Notes”) in lieu of paying a prepayment premium to two noteholders on the early repayment of the 12.5% Notes discussed above. The result of these two transactions reduced the net balance of the Company’s 12.5% Notes outstanding in the aggregate to $51,500 at December 31, 2020. The $4,000 principal issuance would be repaid proportionally over the same maturities as the other 12.5% Notes. The Company also paid to one of its noteholders a $2,250 premium as result of the early retirement of debt.

The Company accounted for the $22,500 debt repayment as a debt modification of the 12.5% Notes. The fees paid to noteholders inclusive of (i) a $2,250 early premium prepayment and (ii) $4,000 issuance of Additional Notes in lieu of paying a prepayment penalty were recorded as additional debt discount, amortized over the remaining life of the 12.5% Notes using the effective interest method. Loan origination costs of $220 associated with the Additional Notes were expensed as incurred. Existing deferred discounts and loan origination fees on the 12.5% Notes are amortized as an adjustment of interest expense over the remaining term of modified debt using the effective interest method.

The First Supplemental Indenture contained a provision whereby, as the Company receives any cash proceeds from the Monetization Agreement, each noteholder had the right to require the Company to redeem all or any part of such noteholder’s outstanding 12.5% Notes at a repurchase price in cash equal to 112.5% of the principal amount, plus accrued and unpaid interest. This repurchase offer was capped at 30% of the cash proceeds received by the Company as the contingent milestones were attained, if any, up through June 30, 2025. The embedded put option was deemed to be a derivative under ASC 815, Derivatives and Hedging, which required the recording of the embedded put option at fair value subject to remeasurement at each reporting period. Accordingly, a valuation study was performed by an independent third party appraiser and updated as of June 30, 2023. Based on the valuation study, the put option was valued at $0 and has been recorded in Other non-current liabilities. The put option fair value increased by $13 and decreased by $58 and was recorded in interest income and other

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income, net on the Condensed Statements of Operations and Comprehensive (Loss) for the three and six months ended June 30, 2023, respectively. In addition, as of the closing of this transaction, the Company issued to the holders of the 12.5% Notes warrants to purchase 143,000 shares of the Company’s Common Stock. As of June 30, 2024, the put option is no longer in place due to the refinancing of the 12.5% Notes.

On October 7, 2021, the Company entered into the Fourth Supplemental Indenture, pursuant to which the amortization schedule for the 12.5% Notes was amended to provide for the date of the first principal payment to be extended from September 30, 2021 to March 30, 2023. The Fourth Supplemental Indenture did not change the maturity date of the 12.5% Notes or the interest payment obligation due under the 12.5% Notes. In connection with the Fourth Supplemental Indenture, the Company entered into a Consent Fee Letter with the holders of the 12.5% Notes (the “Consent Fee Letter”), pursuant to which the Company agreed to pay the holders of the 12.5% Notes an additional cash payment ("Consent Fee") of $2,700 in the aggregate, payable in four quarterly payments beginning May 15, 2022. The last Consent Fee installment of $675 was made in February 2023.

The 12.5% Notes provided a stated fixed interest rate of 12.5%, payable quarterly in arrears, with the final quarterly principal repayment of the 12.5% Notes due at maturity on June 30, 2025.

The Company could have elected, at its option, to redeem the 12.5% Notes at any time at premiums that range from 101.56% of outstanding principal if prepayment occurs on or after the fifth anniversary of the issue date of the Initial Notes to 112.50% if payment occurs during the third year after the issuance of the 12.5% Notes. The Indenture also included change of control provisions under which the Company would have been required to redeem the 12.5% Notes at 101% of the remaining principal plus accrued interest at the election of the noteholders.

During the six months ended June 30, 2023, the Company redeemed $5,647 of its outstanding 12.5% Notes. The Company also paid $353 in prepayment premium as result of the early retirement of debt which was reflected as a loss on extinguishment of debt. The prepayments along with the scheduled principal payments of $6,878 in the first half of 2023 reduced the net balance of the 12.5% Notes outstanding in the aggregate to $38,975 as of June 30, 2023.

Amortization expense arising from amortization of deferred debt issuance costs and debt discounts related to the 12.5% Notes for the three and six months ended June 30, 2023 was $4 and $8, respectively.

On November 1, 2023, the Company issued the 13.5% Notes, as described below, and used most of the proceeds from the issuance to repay the outstanding principal balance under the 12.5% Notes of $36,014, including accrued and unpaid interest and a redemption fee.

13.5% Senior Secured Notes

On November 1, 2023, the Company entered into an Indenture Agreement with certain institutional investors (the “Note Holders”) and issued $45,000 aggregate principal amount of its 13.5% Notes due 2028. The Company received net proceeds of approximately $4,326 from this transaction after the repayment of the 12.5% Notes and deduction of debt discount, and debt issuance costs.

The 13.5% Notes are senior secured obligations of the Company and mature on November 1, 2028. The 13.5% Notes bear interest at a fixed rate of 13.5% per year, payable quarterly commencing on December 30, 2023; the first interest payment was due and paid on January 2, 2024. On each payment date commencing on June 30, 2026, the Company will pay an installment of principal of the 13.5% Notes pursuant to a fixed amortization schedule, along with the applicable Exit Fee. The Exit Fee totals $2,000.

The Company may, at its option, redeem the 13.5% Notes in full or in part:

a.if such redemption occurs prior to November 1, 2025, at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, plus the applicable Exit Fee, plus an Applicable Premium which is the greater of

i.1.0% of the principal redeemed; and

ii.the amount, if any, by which the present value of the principal to be redeemed on November 1, 2025, plus all required interest due on such date, computed using a discount rate equal to the Treasury Rate, plus 100 basis points, exceeds the amount of principal to be redeemed; and

b.if such redemption occurs after November 1, 2025, the redemption price is equal to 108.5% of the principal amount plus accrued and unpaid interest, plus the applicable Exit Fee.

If the Company undergoes a change of control, the Note Holders may require the Company to repurchase for cash all or any portion of the 13.5% Notes at a change of control repurchase price equal at 108.5% plus the Exit Fee of the remaining principal, plus accrued interest at the election of the Note Holders.

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The Indenture permits the Company, upon the continuing satisfaction of certain conditions, including that the Company has at least $100,000 of net revenues for the most recently completed twelve calendar month period, to enter into an ABL facility not to exceed $10,000. The ABL Facility may be collateralized only by assets of the Company constituting inventory, accounts receivable, and the proceeds thereof.

In connection with the issuance of 13.5% Notes, the Company and the Note Holders entered into the Royalty Right Agreements dated as of November 1, 2023, which provides Note Holders:

a.a tiered royalty between 1.0% and 2.0% of annual worldwide net sales of Anaphylm™ (epinephrine) Sublingual Film for a period of 8 years from the first sale of Anaphylm on a global basis, and

b.a tiered royalty between 1.0% to 2.0% of annual worldwide net sales of Libervant™ (diazepam) Buccal Film until the earlier of (1) the first sale of Anaphylm and (2) eight years from the first sale of Libervant.

Both the 13.5% Notes and Royalty Right Agreements, represent freestanding instruments which were issued in conjunction with each other. They are classified as debt within the scope of ASC 470, Debt and are subsequently measured on an amortized cost basis.

The initial fair value measurement of the Royalty Right Agreements was determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, and the estimated amount of future sales of Anaphylm and Libervant. These inputs are derived using internal management estimates developed based on third-party data and reflect management’s judgements, current market conditions, and forecasts.

The Royalty Right Agreements’ fair value is estimated by applying probability-weighted cash flows for future sales, which are then discounted to present value. Changes to fair value of the Royalty Rights Agreements can result from changes to one or a number of the aforementioned inputs. A significant change in unobservable inputs could result in a material increase or decrease to the effective interest rate of the Royalty Right Agreements liability. As of June 30, 2024, there were no material changes to the significant unobservable inputs used to recognize the Royalty Right Agreements liability.

The following table summarizes the significant unobservable inputs used in the initial fair value measurement of the Royalty Right Agreements:

Valuation Methodology

Significant Unobservable Input

Weighted Average (range, if applicable)

Discount Rate

15%

Royalty Right Agreements

Probability weighted income approach

Probability of Success

75%

Projected Years of Payments

2025

-

2033

Since the Royalty Right Agreements were issued in connection with the 13.5% Notes, the Company allocated the proceeds to the two instruments based on their relative fair values. The Company allocated approximately $13,856 to the Royalty Right Agreements. The Company determined the allocated fair value by calculating the present value of estimated future royalties to be paid to Note Holders over the life of the arrangement.

The excess of future estimated royalty payments of $56,926 over the $13,856 of allocated fair value is recognized as a discount related to the Royalty Right Agreements and is amortized as interest expense using the effective interest method.

At inception, the allocated amounts of $13,856 when combined with the Exit Fee of $2,000, original issue discount of $1,125 and debt issuance costs of $3,517, resulted in a debt discount of $20,498. The debt discount is being amortized over the term of 13.5% Notes using the effective interest method.

Amortization expense arising from the discounts related to the 13.5% Notes for the three and six months ended June 30, 2024 was $1,254 and $2,511, respectively. Amortization expense arising from the discounts related to the Royalty Right Agreements for the three and six months ended June 30, 2024 was $1,358 and $2,716, respectively.

Unamortized discounts totaled $15,154 and $17,665 for the 13.5% Notes and $39,449 and $42,165 for the Royalty obligations as of June 30, 2024 and December 31, 2023, respectively.

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Long-term notes and unamortized debt discount balances are as follows:

			June 30,						December 31,
			2024						2023
Total outstanding notes			$	45,000					$	45,000
Unamortized discount, including Exit Fee			(15,154)						(17,665)
Notes payable, long-term			29,846						27,335
Finance lease			160						173
Notes payable, net			$	30,006					$	27,508

			June 30,						December 31,
			2024						2023
Royalty obligations			$	56,926					$	56,926
Unamortized discount			(39,449)						(42,165)
Royalty obligations, net			$	17,477					$	14,761

Scheduled principal payments on the 13.5% Notes as of June 30, 2024 are as follows:

Remainder of 2024			$	—
2025			—
2026			9,540
2027			14,535
2028			20,925
Total			$	45,000

Warrants Issued to 12.5% Senior Secured Noteholders

Warrants that were issued in conjunction with the Initial Notes (the “Initial Warrants”) and Additional Notes (the “Additional Warrants”) expire on June 30, 2025 and entitled the noteholders to purchase up to 2,143,000 shares of Common Stock and included specified registration rights. Management estimated the fair value of the Initial Warrants to be $6,800 and the Additional Warrants to be $735, each based on an assessment by an independent third-party appraiser. The fair value of the respective warrants was treated as a debt discount, amortizable over the term of the respective warrants, with the unamortized 12.5% Notes portion applied to reduce the aggregate principal amount of the 12.5% Notes. Additionally, since the Initial Warrants and Additional Warrants issued do not provide warrant redemption or put rights within the control of the holders that could require the Company to make a payment of cash or other assets to satisfy the obligations under the warrants, except in the case of a “cash change in control”, the fair value attributed to the warrants is presented in Additional Paid-in Capital in the Company’s unaudited Condensed Balance Sheets. There were no warrants exercised as it relates to the Initial Warrants and the Additional Warrants during the six months ended June 30, 2024 and 2023, respectively. Warrants to purchase a total of 1,714,429 shares of Common Stock with exercise prices of $4.25 and $5.38 for 1,571,429 warrants and 143,000 warrants, respectively, remain outstanding as of June 30, 2024 and December 31, 2023. See Note 13, Long-Term Debt.

Warrants Issued Under Securities Purchase Agreements

In June 2022, the Company issued pre-funded warrants and Common Stock warrants to certain purchasers in connection with the Securities Purchase Agreements. The pre-funded warrants entitled purchasers to purchase up to 4,000,000 shares of Common Stock and were exercised in full during the year ended December 31, 2022. The Common Stock warrants expire on June 8, 2027 and entitled the purchasers to purchase up to 8,850,000 shares of Common Stock at an exercise price of $0.96 per share. Management estimated the fair value of the pre-funded warrants and Common Stock warrants to be $5,874 based on an assessment by an independent third-party appraiser. The fair value of the pre-funded and Common Stock warrants is treated as equity and presented in Additional Paid-in Capital in the Company’s unaudited Condensed Balance Sheets. On June 14, 2023, 3,689,452 Common Stock warrants issued pursuant to the Securities Purchase Agreements were exercised with proceeds of approximately $3,542.

On August 1, 2023, the Company entered into the Letter Agreement with the Exercising Holder of 5,000,000 of the remaining Common Stock Warrants. Pursuant to the Letter Agreement, the Exercising Holder and the Company agreed that the Exercising Holder would exercise all of its Existing Warrants for shares of Common Stock underlying the Existing Warrants at $0.96 per share of Common Stock, the current exercise price of the Existing Warrants. Under the Letter Agreement, in

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consideration of the Exercising Holder exercising the Existing Warrants, the Company issued to the Exercising Holder New Warrants to purchase up to an aggregate of 2,750,000 shares of Common Stock. The New Warrants are exercisable after February 2, 2024, expire on February 2, 2029 and are issuance only for cash, subject to exception if the shares of Common Stock underlying the New Warrants are not registered in accordance with the terms of the Letter Agreement, in which case the New Warrants may also be exercised, in whole or in part, at such time by means of a "cashless exercise". The New Warrants have an exercise price of $2.60 per share. Management estimated the fair value of the warrants to be $4,671 based on an assessment by an independent third-party appraiser. The fair value of the New Warrants is treated as equity and is presented in Additional Paid-in Capital in the Company’s Condensed Balance Sheets.

On August 2, 2023, 5,000,000 of the Existing Warrants were exercised pursuant to the Securities Purchase Agreement with the Exercising Holder, with the Company receiving gross proceeds therefrom of $4,800. In total, 8,689,452 Common Stock warrants issued pursuant to the Securities Purchase Agreements with net proceeds of approximately $8,307 were exercised during the year ended December 31, 2023. The Company incurred $35 in relation to this transaction.

There were no warrants exercised as it relates to the Warrants Issued Under Securities Purchase Agreements during the six months ended June 30, 2024 or 2023, respectively.

In addition to the warrants to purchase 2,750,000 shares of Common Stock described above, there remain outstanding warrants to purchase 160,548 shares of Common Stock at an exercise price of $0.96 and warrants to purchase 1,714,429 shares of Common Stock outstanding related to the original issuance of the 12.5% Notes prior to the debt refinancing described above in this Note 14, with exercise prices of $4.25 and $5.38 for 1,571,429 warrants and 143,000 warrants, respectively.

On November 3, 2020, the Company entered into the Monetization Agreement with Marathon. Under the terms of the Monetization Agreement, the Company sold all of its contractual rights to receive royalties and milestone payments due under the Sunovion License Agreement related to Sunovion’s apomorphine product, KYNMOBI, an apomorphine film therapy for the treatment of off episodes in Parkinson’s disease patients, which received approval from the FDA on May 21, 2020. In exchange for the sale of these rights, the Company received an upfront payment of $40,000 and an additional payment of $10,000 through the achievement of the first milestone. The Company has received an aggregate amount of $50,000 through June 30, 2024 under the Monetization Agreement.

Under the Monetization Agreement, additional contingent payments of up to $75,000 may be due to the Company upon the achievement of worldwide royalty and other commercial targets within a specified timeframe, which could result in total potential proceeds of $125,000.

The Company recorded the upfront proceeds of $40,000 and subsequent first milestone of $10,000, reduced by $2,909 of transaction costs, as a liability related to the sale of future revenue that will be amortized using the effective interest method over the life of the Monetization Agreement. As future contingent payments are received, they will increase the balance of the liability related to the sale of future revenue. Although the Company sold all of its rights to receive royalties and milestones, as a result of ongoing obligations related to the generation of these royalties, the Company will account for these royalties as revenue. Its ongoing obligations include the maintenance and defense of the intellectual property and to provide assistance to Marathon in executing a new license agreement for KYNMOBI in the event Sunovion terminates the Sunovion License Agreement in one or more jurisdictions of the licensed territory under the Sunovion License Agreement. The accounting liabilities, as adjusted over time, resulting from this transaction and any non-cash interest expenses associated with those liabilities do not and will not represent any obligation to pay or any potential future use of cash.

During the second quarter of 2020, under the Sunovion License Agreement, the Company recognized $8,000 of royalty revenue and corresponding royalty receivable, related to the $1,000 annual minimum guaranteed royalty that is due. In connection with the Monetization Agreement, the Company performed an assessment under ASC 860, Transfer and Servicing to determine whether the existing receivable was transferred to Marathon and concluded that the receivable was not transferred.

As royalties are remitted to Marathon from Sunovion, the collection of the royalty receivable and balance of the liability related to the sale of future revenue will be effectively repaid over the life of the agreement. In order to determine the amortization of the liability related to the sale of future revenue, the Company is required to estimate the total amount of future royalty and milestone payments to Marathon over the life of the Monetization Agreement and contingent milestone payments from Marathon to the Company. The sum of future royalty payments less the $50,000 in proceeds received and future contingent payments has been recorded as interest expense over the life of the Monetization Agreement. At execution, the estimate of this total interest expense resulted in an effective annual interest rate of approximately 24.9%. This estimate contained significant assumptions that impact both the amount recorded at execution and the interest expense that will be recognized over the life of the Monetization Agreement. The Company will periodically assess the estimated royalty and milestone payments to Marathon from Sunovion and contingent milestone payments from Marathon to the Company. To the extent the amount or timing of such payments is materially different from the original estimates, an adjustment will be recorded

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prospectively to increase or decrease interest expense. There are a number of factors that could materially affect the amount and timing of royalty and milestone payments to Marathon from Sunovion and, correspondingly, the amount of interest expense recorded by the Company, most of which are not under the Company’s control. Such factors include, but are not limited to, changing standards of care, the initiation of competing products, manufacturing or other delays, generic competition, intellectual property matters, adverse events that result in government health authority imposed restrictions on the use of products, significant changes in foreign exchange rates as the royalties remitted to Marathon are made in U.S. dollars (USD) while a portion of the underlying sales of KYNMOBI will be made in currencies other than USD, and other events or circumstances that are not currently foreseen. Changes to any of these factors could result in increases or decreases to both royalty revenue and interest expense related to the sale of future revenue.

In June 2023, Sunovion announced that it had voluntarily withdrawn KYNMOBI from the U.S. and Canadian markets. Therefore, the Company likely will not receive any of the additional contingent payments under the Monetization agreement. Further, the Company discontinued recording interest expense related to the sale of future revenue during the fourth quarter of 2022.

The following table shows the activity of the liability related to the sale of future revenue:

			June 30,						December 31,
			2024						2023
Liability related to the sale of future revenue, net at beginning of the period			$	64,490					$	65,259
Royalties related to the sale of future revenue			(922)						(989)
Amortization of issuance costs			116						220
Liability related to the sale of future revenue, net at end of the period (includes current portion of $1,000 and $922, respectively)			$	63,684					$	64,490

Basic net (loss) earnings per share is calculated by dividing net (loss) income by the weighted-average number of common shares.

The following table reconciles the basic to diluted weighted average shares outstanding for the three and six months ended June 30, 2024 and 2023. Diluted EPS is adjusted by the effect of dilutive securities, including options and awards under the Company’s equity compensation plans, warrants and ESPP. As a result of the Company’s net loss incurred for the three months ended June 30, 2024 and 2023, and for the six months ended June 30, 2024. all potentially dilutive instruments outstanding would have anti-dilutive effects on per-share calculations. Therefore, basic and diluted net loss per share are the same for the three months ended June 30, 2024 and 2023 and six months ended 2024 as reflected below.

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Numerator:
Net (loss) income			$	(2,745)					$	(5,792)					$	(15,573)					$	2,276
Denominator:
Weighted-average number of common shares – basic			90,911,626						57,350,902						82,263,168						56,494,805
Effect of stock options (a)			—						—						—						46,043
Effect of restricted stock units (b)			—						—						—						468,036
Effect of warrants (c)			—						—						—						1,910,742
Effect of Employee Stock Purchase Plan (d)			—						—						—						18,596
Weighted-average number of common shares – diluted			90,911,626						57,350,902						82,263,168						58,938,222
(Loss) Earnings per share attributable to common stockholders:
(Loss) Earnings per common share – basic			$	(0.03)					$	(0.10)					$	(0.19)					$	0.04
(Loss) Earnings per common share – diluted			$	(0.03)					$	(0.10)					$	(0.19)					$	0.04

(a)For the three months ended June 30, 2024 and 2023, outstanding stock options of 6,438,239 and 5,919,522 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding stock options of 6,438,239 and 5,794,522 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS.

(b)For the three months ended June 30, 2024 and 2023, outstanding restricted stock units of 3,935,201 and 2,477,738 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023,

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outstanding restricted stock units of 3,935,201 and 743,438. shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS.

(c)For the three months ended June 30, 2024 and 2023, outstanding warrants of 4,624,977 and 6,874,977 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding warrants of 4,624,977 and 1,714,429 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS.

(d)For the three and six months ended June 30, 2024 and the three months ended June 30, 2023, the estimated effects of ESPP awards were not material.

The Company recognized share-based compensation in its unaudited Condensed Statements of Operations and Comprehensive (Loss) Income during 2024 and 2023 as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Manufacture and supply			$	99					$	55					$	169					$	96
Research and development			308						100						478						172
Selling, general and administrative			1,132						493						2,472						724
Total share-based compensation expenses			$	1,539					$	648					$	3,119					$	992
Share-based compensation from:
Restricted stock units			$	1,000					$	195					$	1,933					$	220
Stock options			523						436						1,170						755
Employee stock purchase plan (ESPP)			16						17						16						17
Total share-based compensation expenses			$	1,539					$	648					$	3,119					$	992

Share-Based Compensation Equity Awards

The following tables provide information about the Company’s restricted stock unit and stock option activity during the six month period ended June 30, 2024:

Restricted Stock Unit Awards (RSUs) - Service-based:			Number of Units						Weighted Average Grant Date Fair Value
			(in thousands)
Unvested as of December 31, 2023			1,948						$	0.97
Granted			1,388						$	5.61
Vested			(570)						$	0.89
Forfeited			(13)						$	2.65
Unvested as of June 30, 2024			2,753						$	3.32
Vested and expected to vest as of June 30, 2024			2,534						$	3.29

As of June 30, 2024, $7,261 of total unrecognized compensation expenses related to unvested service-based restricted stock units are expected to be recognized over a remaining weighted average period of 2.19 years. The service-based restricted stock units granted to employees are subject to a three-year graduated vesting schedule and are not subject to performance-based criteria other than continued employment.

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Restricted Stock Unit Awards (RSUs) - Market conditions vesting-based:			Number of Units						Weighted Average Grant Date Fair Value
			(in thousands)
Unvested as of December 31, 2023			1,332						$	2.40
Vested			(150)						2.40
Forfeited			—						—
Unvested as of June 30, 2024			1,182						$	2.40
Vested and expected to vest as of June 30, 2024			1,075						$	2.40

As of June 30, 2024, $1,658 of unrecognized compensation expense related to unvested market condition vesting- based restricted stock units are expected to be recognized over a remaining weighted average period of 1.85 years.

The market conditions vesting-based restricted stock units vest based on a Performance Price measured as the 30-day average of the closing prices of the Company’s common stock as reported on the NASDAQ Stock Market immediately prior to and including the last calendar day of the three-year performance period (which ends on the third anniversary of the grant date). To the extent the Performance Price is less than $1.75, the Vesting Percentage will be zero. To the extent the Performance Price is $1.75, the Vesting Percentage will be 50%. To the extent the Performance Price is $1.76 or greater, but less than $2.50, the Vesting Percentage will be a prorated amount between 50.01% and 99.99%, based on straight-line interpolation. To the extent the Performance Price is $2.50, the Vesting Percentage will be 100%. To the extent the Performance Price is $2.51 or greater, but less than $3.25, the Vesting Percentage will be a prorated amount between 100.01% and 149.99%, based on straight-line interpolation. To the extent the Performance Price is $3.25 or greater, the Vesting Percentage will be 150%. In no event will the Vesting Percentage exceed 150%.

2022 Inducement Equity Incentive Plan

In accordance with NASDAQ Listing Rule 5635(c)(4), the Company adopted the 2022 Equity Inducement Plan approved by the Compensation Committee of the Board of Directors of the Company effective as of July 29, 2022. There were no awards outstanding under this Plan as of June 30, 2024.

Stock Option Awards:			Number of Options						Weighted Average Exercise Price
			(in thousands)
Outstanding as of December 31, 2023			5,733						$	5.58
Granted			1,024						4.83
Exercised			(231)						2.33
Forfeited/Expired			(88)						4.22
Outstanding as of June 30, 2024			6,438						$	5.59
Vested and expected to vest as of June 30, 2024			6,326						$	5.62
Exercisable as of June 30, 2024			4,719						$	6.34

The fair values of stock options granted were estimated using the Black-Scholes pricing model based on the following assumptions:

			Six Months Ended June 30,
Expected dividend yield			—%
Expected volatility			104%			-			107%
Expected term (years)			5.5			-			6.1
Risk-free interest rate			4.1%			-			4.5%

The weighted average grant date fair value of stock options granted during the six months ended June 30, 2024 was $3.98. During the six months ended June 30, 2024, stock options were granted with an exercise price of $4.83 and accordingly, given the Company’s share price of $2.60 at June 30, 2024, the intrinsic value provided by certain shares granted during this period was de minimis.

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As of June 30, 2024, $4,033 of unrecognized compensation expense related to non-vested stock options is expected to be recognized over a remaining weighted average period of 1.76 years.

The Company has accounted for income taxes under the asset and liability method, which requires deferred tax assets and liabilities to be recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts and respective tax bases of existing assets and liabilities, as well as net operating loss carryforwards and research and development credits. Valuation allowances are provided if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. For the three and six months ended June 30, 2024, the effective income tax rate was 0%, and the Company recorded no income tax expense from its pretax losses of $2,745 and $15,573, respectively. For the three and six months ended June 30, 2023, the effective income tax rate was (5.2%) and 11.1%, respectively, and the Company recorded $284 and $284 from its pretax (loss) income of ($5,508) and $2,560 , respectively.

The primary factors impacting the effective tax rate for six months ended June 30, 2024 is the anticipated full year pre-tax book loss and a full valuation allowance against any associated net deferred tax assets.

From time to time, the Company has been and may again become involved in legal proceedings arising in the course of its business, including product liability, intellectual property, securities, civil tort, and commercial litigation, and environmental or other regulatory matters.

Patent-Related Litigation

Indivior Inc., Indivior UK Ltd., and Aquestive Therapeutics, Inc. v. Teva Pharmaceuticals USA, Inc.

On February 7, 2018, the Company and Indivior initiated a lawsuit against Teva Pharmaceuticals USA, Inc. (“Teva”) asserting infringement of U.S. Patent No. 9,855,221 ("the '221 patent"). On April 3, 2018, the Company and Indivior initiated a separate lawsuit against Teva asserting infringement of U.S. Patent No. 9,931,305 ("the '305 patent"). On May 29, 2018, the lawsuits regarding the '221 and '305 patents were consolidated with a suit originally initiated by Indivior against Teva asserting infringement of U.S. Patent No. 9,687,454 ("the '454 patent"). The parties agreed that the case would be governed by the final judgment against Dr. Reddy’s, which also involved allegations of infringement of the '221, '305, and '454 patents, which was resolved via a settlement agreement and entry of a Stipulation and Order of Dismissal on June 28,2022. On January 31, 2024, the Court entered a Stipulation and Order of Dismissal, dismissing all claims and counterclaims with prejudice in the lawsuit against Teva.

Kentucky Litigation - Humana

Humana Inc. v. Indivior Inc, Indivior Solutions Inc., Indivior PLC, Reckitt Benckiser Group plc, Reckitt Benckiser Healthcare (UK) Ltd., and Aquestive Therapeutics, Inc.

On August 20, 2021, Humana filed a complaint in state court in Kentucky, alleging conspiracy to violate the RICO Act, fraud under state law, unfair and deceptive trade practices under state law, insurance fraud, and unjust enrichment against the Company relating to Indivior’s launch of Suboxone Sublingual Film in 2010. The Humana action was stayed pending related litigation, and the stay was lifted on October 30, 2023. On February 23, 2024, the Company filed a motion to dismiss the Complaint. Oral argument on the Company's motion to dismiss is currently set for September 9, 2024. No discovery schedule has been set in the action and there is no trial date set in this case. The Company is not able to determine or predict the ultimate outcome of the state court action in Kentucky by Humana, or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter.

California Litigation

Neurelis, Inc. v. Aquestive Therapeutics, Inc.

On December 5, 2019, Neurelis Inc. filed a lawsuit against the Company in the Superior Court of California, County of San Diego alleging the following three causes of action: (1) Unfair Competition under California Business and Professional Code § 17200 (“UCL”); (2) Defamation; and (3) Malicious Prosecution. Neurelis filed a First Amended Complaint on December 9, 2019, alleging the same three causes of action. The Company filed a Motion to Strike Neurelis’s Complaint under California’s anti-SLAPP (“strategic lawsuit against public participation”) statute on January 31, 2020, which Neurelis opposed. On August 6, 2020, the Court issued an order granting in part and denying in part the Company’s anti-SLAPP motion. The parties cross-appealed the ruling to the California Court of Appeal. The appeals court held oral argument on the appeal on October 14, 2021, and issued its ruling on November 17, 2021. Under the ruling, the court struck the entirety of the malicious

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prosecution claim and struck portions of the UCL and defamation claims. On April 12, 2022, Neurelis filed a Second Amended Complaint in response to the Court of Appeal’s decision. The Second Amended Complaint also added a cause of action for Trade Libel. On May 3, 2022, the Company filed a "demurrer" challenge to the sufficiency of the allegations of the Second Amended Complaint. Oral argument on the Company’s motion for attorney fees related to the anti-SLAPP motion and on the Second Amended Complaint and demurer challenge was held on June 17, 2022. The Court entered an order granting the Company’s motion for attorney fees, awarding $156 and ordering Neurelis to pay the fees within 60 days of June 17, 2022. The Court denied the Company’s demurrer and the parties proceeded with discovery on the claims in the Second Amended Complaint. The plaintiff filed a motion to file a third amended complaint, which the Court granted on November 17, 2023. The Third Amended Complaint alleges additional facts but includes the same claims as the Second Amended Complaint. Trial in this matter is scheduled for March 7, 2025. The Company is not able to determine or predict the ultimate outcome of this proceeding or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter.

Suboxone Product Liability Litigation

As of July 29, 2024, the Company was named as a defendant in over 560 product liability lawsuits, along with Indivior and several other named defendants, in which the individual plaintiffs in those cases allege that their use of Suboxone® Sublingual Film, a prescription drug product for opioid use disorder, caused them dental injuries. On February 2, 2024, this litigation became a Multidistrict Litigation (“MDL") consolidated in the United States District Court for the Northern District of Ohio. One case alleging the same allegations as contained in the MDL has been filed in a state court in the State of New Jersey. The parties to the MDL have agreed to a tolling of unfiled claimants in several states, but have not yet agreed to a tolling of the N.J. state case. Indivior has agreed to defend the Company in these litigation matters. No discovery schedule or trial date has been set in the MDL matter. The Company is not able to determine or predict the ultimate outcome of this litigation or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter.

Neurelis FDA Lawsuit

Neurelis v. Califf, et al., U.S. District court for the District of Columbia

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v3.24.2.u1

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-38599
Entity Registrant Name	Aquestive Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	30 Technology Drive
Entity Address, City or Town	Warren
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07059
Entity Tax Identification Number	82-3827296
City Area Code	908
Local Phone Number	941-1900
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	AQST
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		91,059,760
Entity Central Index Key	0001398733
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

v3.24.2.u1

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 89,870	$ 23,872
Trade and other receivables, net	5,998	8,471
Inventories	6,966	6,769
Prepaid expenses and other current assets	1,177	1,854
Total current assets	104,011	40,966
Property and equipment, net	3,921	4,179
Right-of-use assets, net	5,435	5,557
Intangible assets, net	0	1,278
Other non-current assets	4,238	5,438
Total assets	117,605	57,418
Current liabilities:
Accounts payable	5,696	8,926
Accrued expenses	5,674	6,497
Lease liabilities, current	455	390
Deferred revenue, current	1,046	1,551
Liability related to the sale of future revenue, current	1,000	922
Loans payable, current	24	22
Total current liabilities	13,895	18,308
Notes payable, net	30,006	27,508
Royalty obligations, net	17,477	14,761
Liability related to the sale of future revenue, net	62,684	63,568
Lease liabilities	5,238	5,399
Deferred revenue, net of current portion	21,757	32,345
Other non-current liabilities	2,027	2,016
Total liabilities	153,084	163,905
Contingencies (Note 19)
Stockholders’ deficit:
Common stock, $0.001 par value. Authorized $250,000,000 shares; 91,059,760 and 68,533,085 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	91	69
Additional paid-in capital	299,080	212,521
Accumulated deficit	(334,650)	(319,077)
Total stockholders’ deficit	(35,479)	(106,487)
Total liabilities and stockholders’ deficit	$ 117,605	$ 57,418
Common stock, shares outstanding (in shares)	91,059,760	68,533,085
Common stock, shares issued (in shares)	91,059,760	68,533,085

v3.24.2.u1

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Stockholders’ deficit:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	91,059,760	68,533,085
Common stock, shares outstanding (in shares)	91,059,760	68,533,085

v3.24.2.u1

Condensed Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 20,099	$ 13,241	$ 32,152	$ 24,375
Costs and expenses:
Manufacture and supply	4,526	6,617	8,915	11,354
Research and development	4,162	3,473	10,094	7,020
Selling, general and administrative	11,356	7,360	22,045	14,815
Total costs and expenses	20,044	17,450	41,054	33,189
Income (Loss) from operations	55	(4,209)	(8,902)	(8,814)
Other income/(expenses):
Interest expense	(2,779)	(1,373)	(5,563)	(2,808)
Interest expense related to royalty obligations	(1,358)	0	(2,716)	0
Interest expense related to the sale of future revenue	(58)	(55)	(116)	(107)
Interest income and other income, net	1,395	129	1,724	14,642
Loss on extinguishment of debt	0	0	0	(353)
Net (loss) income before income taxes	(2,745)	(5,508)	(15,573)	2,560
Income taxes	0	284	0	284
Net (loss) income	(2,745)	(5,792)	(15,573)	2,276
Comprehensive (loss) income	$ (2,745)	$ (5,792)	$ (15,573)	$ 2,276
(Loss) earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.03)	$ (0.10)	$ (0.19)	$ 0.04
Diluted (in dollars per share)	$ (0.03)	$ (0.10)	$ (0.19)	$ 0.04
Weighted average common shares outstanding:
Basic (in shares)	90,911,626	57,350,902	82,263,168	56,494,805
Diluted (in shares)	90,911,626	57,350,902	82,263,168	58,938,222

v3.24.2.u1

Condensed Statements of Changes in Stockholders' Deficit - USD ($) $ in Thousands	Total	Public Equity Offering - ATM	Public Equity Offering	Private equity	Warrant exercises	Public equity	Common Stock	Common Stock Public Equity Offering - ATM	Common Stock Public Equity Offering	Common Stock Warrant exercises	Common Stock Public equity	Additional Paid-in Capital	Additional Paid-in Capital Public Equity Offering - ATM	Additional Paid-in Capital Public Equity Offering	Additional Paid-in Capital Private equity	Additional Paid-in Capital Warrant exercises	Additional Paid-in Capital Public equity	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022							54,827,734
Beginning balance at Dec. 31, 2022	$ (118,554)						$ 55					$ 192,598						$ (311,207)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock issued under public equity offering (in shares)							1,078,622
Common Stock issued under public equity offering	993						$ 1					992
Costs of common stock issued under public equity offering-ATM	(77)											(77)
Share-based compensation expense	344											344
Vested restricted stock units, net (in shares)							16,005
Vested restricted stock units, net	(8)											(8)
Other	(1)											(1)
Net (loss) income	8,068																	8,068
Ending balance (in shares) at Mar. 31, 2023							55,922,361
Ending balance at Mar. 31, 2023	(109,235)						$ 56					193,848						(303,139)
Beginning balance (in shares) at Dec. 31, 2022							54,827,734
Beginning balance at Dec. 31, 2022	(118,554)						$ 55					192,598						(311,207)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,276
Ending balance (in shares) at Jun. 30, 2023							61,615,959
Ending balance at Jun. 30, 2023	(106,651)						$ 62					202,218						(308,931)
Beginning balance (in shares) at Dec. 31, 2022							54,827,734
Beginning balance at Dec. 31, 2022	(118,554)						$ 55					192,598						(311,207)
Ending balance (in shares) at Dec. 31, 2023							68,533,085
Ending balance at Dec. 31, 2023	(106,487)						$ 69					212,521						(319,077)
Beginning balance (in shares) at Mar. 31, 2023							55,922,361
Beginning balance at Mar. 31, 2023	(109,235)						$ 56					193,848						(303,139)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock issued under public equity offering (in shares)							1,981,937			3,689,452
Common Stock issued under public equity offering	4,409				$ 3,542		$ 2			$ 4		4,407				$ 3,538
Costs of common stock issued under public equity offering-ATM	(235)											(235)
Shares issued under employee stock purchase plan (in shares)							18,699
Shares issued under employee stock purchase plan	31											31
Share-based compensation expense	631											631
Vested restricted stock units, net (in shares)							3,510
Vested restricted stock units, net	(3)											(3)
Other	1											1
Net (loss) income	(5,792)																	(5,792)
Ending balance (in shares) at Jun. 30, 2023							61,615,959
Ending balance at Jun. 30, 2023	(106,651)						$ 62					202,218						(308,931)
Beginning balance (in shares) at Dec. 31, 2023							68,533,085
Beginning balance at Dec. 31, 2023	(106,487)						$ 69					212,521						(319,077)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock issued under public equity offering (in shares)								4,557,220	16,666,667
Common Stock issued under public equity offering		$ 12,385	$ 75,000					$ 4	$ 17				$ 12,381	$ 74,983
Costs of common stock issued under public equity offering-ATM		$ (410)	$ (5,187)										$ (410)	$ (5,187)
Share-based compensation expense	1,580											1,580
Vested restricted stock units, net (in shares)							490,359
Vested restricted stock units, net	$ (893)											(893)
Options exercises, net (in shares)	231,400
Options exercised, net	$ 539
Net (loss) income	(12,828)																	(12,828)
Ending balance (in shares) at Mar. 31, 2024							90,478,731
Ending balance at Mar. 31, 2024	(36,301)						$ 90					295,514						(331,905)
Beginning balance (in shares) at Dec. 31, 2023							68,533,085
Beginning balance at Dec. 31, 2023	(106,487)						$ 69					212,521						(319,077)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(15,573)
Ending balance (in shares) at Jun. 30, 2024							91,059,760
Ending balance at Jun. 30, 2024	(35,479)						$ 91					299,080						(334,650)
Beginning balance (in shares) at Mar. 31, 2024							90,478,731
Beginning balance at Mar. 31, 2024	(36,301)						$ 90					295,514						(331,905)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock issued under public equity offering (in shares)											559,801
Common Stock issued under public equity offering						$ 2,520					$ 1						$ 2,519
Costs of common stock issued under public equity offering-ATM				$ (158)		$ (359)									$ (158)		$ (359)
Shares issued under employee stock purchase plan (in shares)							17,716
Shares issued under employee stock purchase plan	46											46
Share-based compensation expense	1,523											1,523
Vested restricted stock units, net (in shares)							3,512
Vested restricted stock units, net	(5)											(5)
Net (loss) income	(2,745)																	(2,745)
Ending balance (in shares) at Jun. 30, 2024							91,059,760
Ending balance at Jun. 30, 2024	$ (35,479)						$ 91					$ 299,080						$ (334,650)

v3.24.2.u1

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net (loss) income	$ (15,573)	$ 2,276
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Depreciation, amortization, and impairment	412	614
Gain on contract termination	(300)	0
Share-based compensation	3,119	975
Amortization of debt issuance costs and discounts	5,342	115
Other, net	19	(267)
Changes in operating assets and liabilities:
Trade and other receivables, net	2,486	(4,728)
Inventories	(197)	(170)
Prepaid expenses and other assets	1,871	1,812
Accounts payable	(1,730)	743
Accrued expenses and other liabilities	(1,746)	(4,643)
Deferred revenue	(11,093)	4,182
Net cash (used for) provided by operating activities	(17,390)	909
Investing activities:
Capital expenditures	(64)	(828)
Net cash used for investing activities	(64)	(828)
Financing activities:
Proceeds from issuance and exercise of warrants	0	3,542
Proceeds from shares issued under employee stock purchase plan	30	31
Proceeds from exercise of stock options, net	539	0
Repayment of debt principal including lease liabilities	(10)	(12,543)
Premium paid to retire debt	0	(1,027)
Payments for taxes on share-based compensation	(898)	(11)
Net cash provided by (used for) financing activities	83,452	(4,918)
Net increase (decrease) in cash and cash equivalents	65,998	(4,837)
Cash and cash equivalents:
Cash and cash equivalents at beginning of period	23,872	27,273
Cash and cash equivalents at end of period	89,870	22,436
Supplemental disclosures of cash flow information:
Cash payments for income taxes	305	0
Cash payments for interest	2,528	2,820
Proceeds from common stock issued under public equity offering, net - ATM
Financing activities:
Proceeds from common stock issued under public equity offering	11,817	5,090
Proceeds from common stock issued under public equity offering, net
Financing activities:
Proceeds from common stock issued under public equity offering	$ 71,974	$ 0

v3.24.2.u1

Company Overview and Basis of Presentation	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company Overview and Basis of Presentation	Company Overview and Basis of Presentation (A) Company Overview Aquestive Therapeutics, Inc. is a pharmaceutical company advancing medicines to solve patients’ problems with current standards of care and provide transformative products to improve their lives. The Company is developing pharmaceutical products that deliver complex molecules through alternative administrations to invasive and inconvenient standard of care therapies. The Company has a proprietary commercial product, Libervant™ (epinephrine) Buccal Film for the acute treatment of intermittent, stereotypic episodes of frequent seizure activity (i.e., seizure clusters, acute repetitive seizures) that are distinct from a patient’s usual seizure pattern in patients with epilepsy between two and five years of age, which was launched in April 2024. The Company is advancing a product pipeline for the treatment of severe allergic reactions, including anaphylaxis, under the trade name "Anaphylm™", and its Adrenaverse epinephrine prodrug pipeline platform. The Company has five licensed commercialized products which are marketed by its licensees in the U.S. and around the world. The Company is the exclusive manufacturer of these licensed products. The Company also collaborates with pharmaceutical companies to bring new molecules to market using proprietary, best-in-class technologies, like PharmFilm®, and has proven drug development and commercialization capabilities. The Company’s production facilities are located in Portage, Indiana, and its corporate headquarters and primary research laboratory facilities are based in Warren, New Jersey. (B) Equity Transactions Equity Offering of Common Stock The Company established its first ATM facility in September 2019, and since inception to June 30, 2024, the Company has sold 19,857,518 shares of Common Stock which has generated net cash proceeds of approximately $60,558, net of commissions and other transactions costs of $3,085. On April 3, 2024, the Company filed a new shelf registration statement on Form S-3 to register the offer and sale of up to $250,000 worth of shares of Common Stock ("Registration Statement No. 333-278498" or the "2024 Registration Statement"), that was declared effective by the SEC on April 23, 2024. Included as part of the 2024 Registration Statement was a $100,000 ATM facility pursuant to the Amended Equity Distribution Agreement with Piper Sandler & Co. (successor to Piper Jaffray & Co.). During the three months ended June 30, 2024, there were no shares of Common Stock sold under the ATM facility. For the six months ended June 30, 2024, the Company sold 4,557,220 shares of Common Stock under the ATM facility which provided net proceeds of approximately $11,855 after deducting commissions and other transaction costs of $530. For the six months ended June 30, 2023, the Company sold 3,060,559 shares under the ATM facility which provided net proceeds of approximately $5,090 after deducting commissions and other transaction costs of $312. On April 12, 2022, the Company entered into the Lincoln Park Purchase Agreement, which provides that, upon the terms and subject to the conditions and limitations set forth in the Lincoln Park Purchase Agreement, the Company has the right, but not the obligation, to sell to Lincoln Park up to $40,000 worth of shares of Common Stock from time to time over the 36-month term of the Lincoln Park Purchase Agreement. The Lincoln Park Purchase Agreement contains an ownership limitation such that the Company will not issue, and Lincoln Park will not purchase, shares of Common Stock if it would result in Lincoln Park’s beneficial ownership exceeding 9.99% of the Company’s then outstanding Common Stock. Lincoln Park has covenanted under the Lincoln Park Purchase Agreement not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s Common Stock. In 2022, the Company sold 1,600,000 shares, in addition to 236,491 commitment shares, which provided proceeds of approximately $1,987 in connection with the Lincoln Park Purchase Agreement. The Company did not sell shares in connection with the Lincoln Park Purchase Agreement in 2023 or for the six months ended June 30, 2024. The Company has no current intent to use the Lincoln Park facility. On March 22, 2024, the Company completed the Underwritten Public Offering of 16,666,667 shares of its common stock at the public offering price of $4.50 per share. In addition, pursuant to the partial exercise of the underwriters' option, on April 22, 2024, the Company sold an additional 559,801 shares of Common Stock. Net proceeds from the Underwritten Public Offering, including the exercise of underwriters' option were $72,868, after deducting underwriting discounts of $4,651. In addition to the underwriting discounts related to this offering, the Company incurred professional fees and other costs totaled $894 as of June 30, 2024. (D) Basis of Presentation The accompanying interim unaudited condensed financial statements were prepared in conformity with U.S. GAAP and with Article 10 of Regulation S-X for interim financial reporting. In compliance with those rules, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2024 (the “2023 Annual Report on Form 10-K”). As included herein, the Condensed Balance Sheet as of December 31, 2023 is derived from the audited consolidated financial statements as of that date. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results of interim periods have been included. The accompanying financial statements reflect certain reclassifications from previously issued financial statements to conform to the current presentation. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited condensed financial statements. Any reference in these notes to applicable guidance refers to the authoritative U.S. GAAP as found in the ASC and ASU of FASB. As of March 31, 2024, the Company dissolved its subsidiaries and no longer prepares its financial statements on a consolidated basis. The dissolution of the subsidiaries did not have a material impact on the Company’s unaudited condensed financial statements as of June 30, 2024 or the audited consolidated financial statements as of December 31, 2023.

v3.24.2.u1

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (A) Recent Accounting Pronouncements As of December 31, 2023, the Company is no longer an “emerging growth company,” but remains a “smaller reporting company”. The Company complies with new or revised accounting standards by the relevant dates on which adoption of such standards is required for smaller reporting companies. From time to time, new accounting pronouncements are issued by the FASB and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recent Accounting Pronouncements Adopted as of June 30, 2024: In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This Accounting Standards Update was issued to address the complexity in accounting for certain financial instruments with characteristics of liabilities and equity. Among other provisions, the amendments in this ASU significantly change the guidance on the issuer’s accounting for convertible instruments and the guidance on the derivative scope exception for contracts in an entity’s own equity such that fewer conversion features will require separate recognition, and fewer freestanding instruments, like warrants, will require liability treatment. More specifically, the ASU reduces the number of models that may be used to account for convertible instruments from five to three, amends diluted EPS calculations for convertible instruments, modifies the requirements for a contract that may be settled in an entity’s own shares to be classified in equity and requires expanded disclosures intended to increase transparency. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This Accounting Standards Update was issued to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for such equity securities. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. Recent Accounting Pronouncements Not Adopted as of June 30, 2024: In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This Accounting Standards Update was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). It further requires disclosure on an annual basis of the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, it requires the following information disclosure: 1. Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU eliminates certain current disclosure requirements. These disclosure requirements will be effective for the Company beginning January 1, 2025, with early adoption of the amendments permitted. The Company is currently evaluating the impact from the adoption of ASU 2023-09 on disclosures to its condensed financial statements.

v3.24.2.u1

Risks and Uncertainties	6 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
Risks and Uncertainties	Risks and Uncertainties The Company assesses liquidity in terms of its ability to generate cash to fund its operating, investing and financing activities. The Company’s cash requirements for 2024 and beyond include expenses related to continuing development and clinical evaluation of its products, manufacture and supply costs, costs of regulatory filings, patent prosecution expenses and litigation expenses, expenses related to commercialization of its products, as well as costs to comply with the requirements of being a public company operating in a highly regulated industry. As of June 30, 2024, the Company had $89,870 of cash and cash equivalents. The Company has experienced a history of net losses. The Company’s accumulated deficits totaled $334,650 as of June 30, 2024. The net losses and accumulated deficits were partially offset by gross margins from sales of commercialized licensed and proprietary products (prior to the licensing agreement of Sympazan with Assertio in October 2022), license fees, milestone and royalty payments from commercial licensees and co-development parties. The Company’s funding requirements have been met by its cash and cash equivalents, as well as its equity and debt offerings, including the 13.5% Senior Secured Notes as further discussed in Note 13, Long-Term Debt, the ATM facility and other equity offerings, including the Underwritten Public Offering. While the Company’s ability to execute its business objectives and achieve profitability over the longer term cannot be assured, the Company’s on-going business, existing cash and cash equivalents, expense management activities, including, but not limited to the ceasing of R&D activities, as well as access to the equity capital markets through its ATM facility and under the Lincoln Park Purchase Agreement, provide near term liquidity for the Company to fund its operating needs for at least the next twelve months as it continues to execute its business strategy.

v3.24.2.u1

Revenues and Trade Receivables, Net	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenues and Trade Receivables, Net	Revenues and Trade Receivables, Net The Company’s revenues include (i) sales of manufactured products pursuant to contracts with commercialization licensees, (ii) license and royalty revenues, and (iii) co-development and research fees generally in the form of milestone payments. The Company recognizes revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, a five-step model is applied that includes (1) identifying the contract with a customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing when, or as, an entity satisfies a performance obligation. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in the current revenue recognition standard. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At contract inception, the Company assesses the goods promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a distinct good. When identifying performance obligations, the Company considers all goods or services promised in a contract regardless of whether explicitly stated in the contract or implied by customary business practice. The Company’s performance obligations consist mainly of transferring goods and services identified in the contracts, purchase orders or invoices. Manufacture and supply revenue – this revenue is derived from products manufactured exclusively for specific customers according to their strictly-defined specifications, subject only to specified quality control inspections. Accordingly, at the point in time when quality control requirements are satisfied, revenue net of related discounts is recorded. License and Royalty Revenue – license revenues are determined based on an assessment of whether the license is distinct from any other performance obligations that may be included in the underlying licensing arrangement. If the customer is able to benefit from the license without provision of any other performance obligations by the Company and the license is thereby viewed as a distinct or functional license, the Company then determines whether the customer has acquired a right to use the license or a right to access the license. For functional licenses that do not require further development or other ongoing activities by the Company, the customer is viewed as acquiring the right to use the license as, and when, transferred and revenues are generally recorded at a point in time, subject to contingencies or constraints. For symbolic licenses providing substantial value only in conjunction with other performance obligations to be provided by the Company, revenues are generally recorded over the term of the license agreement. Such other obligations provided by the Company generally include manufactured products, additional development services or other deliverables that are contracted to be provided during the license term. Payments received in excess of amounts ratably or otherwise earned are deferred and recognized over the term of the license or as contingencies or other performance obligations are met. Royalty revenue is estimated and recognized when sales under supply agreements with commercial licensees are recorded, absent any contractual constraints or collectability uncertainties. Royalties based on sales of licensed products have been recorded in this manner. Co-development and Research Fees – co-development and research fees are earned through performance of specific tasks, activities or completion of stages of development defined within a contractual development or feasibility study agreement with a customer. The nature of these performance obligations, broadly referred to as milestones or deliverables, are usually dependent on the scope and structure of the project as contracted, as well as the complexity of the product and the specific regulatory approval path necessary for that product. Accordingly, the duration of the Company’s research and development projects may range from several months to approximately three years. Although each contractual arrangement is unique, common milestones included in these arrangements include those for the performance of efficacy and other tests, reports of findings, formulation of initial prototypes, production of stability clinical and/or scale-up batches, and stability testing of those batches. Additional milestones may be established and linked to clinical results of the product submission and/or approval of the product by the FDA and the commercial launch of the product. Revenue recognition arising from milestone payments is dependent upon the facts and circumstances surrounding the milestone payments. Milestone payments based on a non-sales metric such as a development-based milestone (e.g., an NDA filing or obtaining regulatory approval) represent variable consideration and are included in the transaction price subject to any constraints. If the milestone payments relate to future development, the timing of recognition depends upon historical experience and the significance a third party has on the outcome. For milestone payments to be received upon the achievement of a sales threshold, the revenue from the milestone payments is recognized at the later of when the actual sales occur or the performance obligation to which the sales relate to has been satisfied. Contract Assets - in certain situations, customer contractual payment terms provide for invoicing in arrears. Accordingly, some, or all performance obligations may be completely satisfied before the customer may be invoiced under such agreements. In these situations, billing occurs after revenue recognition, which results in a contract asset supported by the estimated value of the completed portion of the performance obligation. These contract assets are reflected as a component of other receivables within Trade and other receivables within the Condensed Balance Sheets. As of June 30, 2024, and December 31, 2023, such contract assets were $601 and $1,662, respectively, consisting primarily of products and services provided under specific contracts to customers for which earnings processes have been met prior to shipment of goods or full delivery of completed services, as well as estimated receivables from contracts with 3rd parties. Contract Liabilities - in certain situations, customer contractual payment terms are structured to permit invoicing in advance of delivery of a good or service. In such instances, the customer’s cash payment may be received before satisfaction of some, or any, performance obligations that are specified. In these situations, billing occurs in advance of revenue recognition, which results in contract liabilities. These contract liabilities are reflected as deferred revenue within the Condensed Balance Sheets. As remaining performance obligations are satisfied, an appropriate portion of the deferred revenue balance is credited to earnings. As of June 30, 2024 and December 31, 2023, such contract liabilities were $22,803 and $33,896, respectively. Costs to obtain contracts - in certain situations, the Company may incur incremental costs of obtaining a contract with a customer. These costs, if expected to be recovered, are recognized as an asset and reflected as other assets within the Condensed Balance Sheets. The asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of June 30, 2024 and December 31, 2023, such costs to obtain contracts were $496 and $715, respectively. The Company’s revenues were comprised of the following:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Manufacture and supply revenue $ 8,123  $ 11,636  $ 18,641  $ 21,398  License and royalty revenue 11,220  1,481  12,352  2,400  Co-development and research fees 756  124  1,159  577  Total revenues $ 20,099  $ 13,241  $ 32,152  $ 24,375  Disaggregation of Revenue The following table provides disaggregated net revenue by geographic area:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 United States $ 9,643  $ 7,313  $ 20,070  $ 15,478  Ex-United States 10,456  5,928  12,082  8,897  Total revenues $ 20,099  $ 13,241  $ 32,152  $ 24,375  For the three and six months ended June 30, 2024, United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), MTPA (milestone revenue that was previously recorded as deferred revenue and now recognized due to the termination of the contract), and Assertio (Manufacture and supply revenue, Royalties and Co-development and research fees), For the three and six months ended June 30, 2024, ex-United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), Haisco (an upfront payment received in September 2022 that was previously recorded as deferred revenue and now recognized due to the termination of the contract), and Hypera (Manufacture and supply revenue) for revenue markets outside of the United States. For the three and six months ended June 30, 2023, United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), Assertio (Manufacture and supply revenue, Royalties and Co-development and research fees), and Zevra (License and royalty revenue). For the three and six months ended June 30, 2023, ex-United States revenues were derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), and Hypera (Manufacture and supply revenue). Trade and other receivables, net consist of the following:   June 30, 2024 December 31, 2023 Trade receivables $ 4,331  $ 5,570  Contract and other receivables 1,668  2,915  Less: allowance for doubtful accounts —  (14) Trade and other receivables, net $ 5,998  $ 8,471  The following table presents the changes in the allowance for doubtful accounts:   June 30, 2024 December 31, 2023 Allowance for doubtful accounts at beginning of the period $ 14  $ 40  Allowance expense (reduction) (14) (26) Allowance for doubtful accounts at end of the period $ —  $ 14  Concentration of Major Customers Customers are considered major customers when net revenue exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. For the six months ended June 30, 2024, Indivior, Haisco, and MTPA represented approximately 54%, 22%, and 11% of total revenue, including the one-time recognition of deferred revenue, respectively. As of June 30, 2024, Indivior and Hypera exceeded the 10% threshold for outstanding receivable balances and represented approximately 58% and 11% of outstanding receivables, respectively. For the six months ended June 30, 2023, Indivior and Hypera represented approximately 74% and 14% of total revenue, respectively. As of December 31, 2023, Indivior and Zevra Therapeutics, Inc. represented 65% and 13% of total trade and other receivables, respectively.

v3.24.2.u1

Material Agreements	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Material Agreements	Material Agreements Commercial Exploitation Agreement with Indivior In August 2008, the Company entered into the Indivior License Agreement (with subsequent amendments) with Reckitt Benckiser Pharmaceuticals, Inc. which was later succeeded to in interest by Indivior. Pursuant to the Indivior License Agreement, the Company agreed to manufacture and supply Indivior’s requirements for Suboxone®, a sublingual film formulation, both inside and outside the United States on an exclusive basis. Under the terms of the Indivior License Agreement, the Company is required to manufacture Suboxone in accordance with current Good Manufacturing Practice standards and according to the specifications and processes set forth in the related quality agreements the Company entered into with Indivior. Additionally, the Company is required to obtain API for the manufacture of Suboxone directly from Indivior. The Indivior License Agreement specifies a minimum annual threshold quantity of Suboxone that the Company is obligated to fill and requires Indivior to provide the Company with a forecast of its requirements at various specified times throughout the year. The Indivior License Agreement provides for payment by Indivior of an agreed upon purchase price per unit until January 1, 2025 and, thereafter, that is subject to annual adjustments based on changes in an agreed upon price index. In addition to the purchase price for the Suboxone supplied, Indivior is required to make certain single digit percentage royalty payments tied to net sales value (as provided for in the Indivior License Agreement) outside of the U.S., subject to annual maximum amounts and limited to the life of the related patents. The Indivior License Agreement contains customary contractual termination provisions, including with respect to a filing for bankruptcy or corporate dissolution, an invalidation of the intellectual property surrounding Suboxone, and commission of a material breach of the Indivior License Agreement by either party. Additionally, Indivior may terminate the Indivior License Agreement if the FDA or other applicable regulatory authority declares the Company’s manufacturing site to no longer be suitable for the manufacture of Suboxone or Suboxone is no longer suitable to be manufactured due to health or safety reasons. The initial term of the Indivior License Agreement was seven years from the commencement date. Thereafter, the Indivior License Agreement automatically renewed for successive one year periods. Effective as of March 2, 2023, the Company and Indivior entered into the Indivior Agreement to the Indivior License Amendment. The Indivior Amendment was entered into for the primary purpose of amending the Agreement as follows: (i) extending the term of the Agreement until August 16, 2026 and thereafter providing for automatic renewal terms of successive one year periods unless Indivior delivers notice to the Company, at least twelve months prior to the expiration of the then current term, of Indivior’s intent not to renew, subject to the earlier termination rights of the parties under the Agreement, and providing that the Agreement will not automatically renew for any renewal term beginning after the expiration of the last to expire of the product patents covered under the Indivior License Agreement; and (ii) agreeing to transfer pricing and payment terms for supplied product under the Indivior License Agreement. During the six months ended June 30, 2023, in consideration of the agreements between the parties, the Company received a payment of $11,482 from Indivior, of which amount $5,482 represented: (a) payment of the portion of a 2022 price increase that had not been previously paid and (b) an estimated payment in 2023 for certain price increases. During the six months ended June 30, 2023, the Company recognized $3,030, of which $1,682 was related to the 2022 price increases, in Manufacture and supply revenue and $6,000 in Interest income and other income, net on the Condensed Statements of Operations and Comprehensive (Loss) Income. As of December 31, 2023, the $5,482 price increase had been fully recognized in Manufacture and supply revenue; there were no retroactive price adjustments included in Manufacture and supply revenue for the six months ended June 30, 2024. Supplemental Agreement with Indivior On September 24, 2017, the Company entered into an agreement with Indivior, or the Indivior Supplemental Agreement. Pursuant to the Indivior Supplemental Agreement, the Company conveyed to Indivior all existing and future rights in the settlement of various ongoing patent enforcement legal actions and disputes related to the Suboxone product. The Company also conveyed to Indivior the right to sublicense manufacturing and marketing capabilities to enable an Indivior licensed generic buprenorphine product to be produced and sold by parties unrelated to Indivior or Aquestive. Under the Indivior Supplemental Agreement, the Company was entitled to receive certain payments from Indivior commencing on the date of the Indivior Supplemental Agreement through January 1, 2023. Once paid, all payments made under the Indivior Supplemental Agreement are non-refundable. Through February 20, 2019, the at-risk launch date of the competing generic products of Dr. Reddy’s Labs and Alvogen, the Company received an aggregate of $40,750 from Indivior under the Indivior Supplemental Agreement. Further payments under the Indivior Supplemental Agreement were suspended until adjudication of related patent infringement litigation is finalized. No further payments are due to the Company under the Indivior Supplemental Agreement. See Note 19, Contingencies for details. All payments made by Indivior to the Company pursuant to the Indivior Supplemental Agreement were in addition to, and not in place of, any amounts owed by Indivior to the Company pursuant to the Indivior License Agreement. License Agreement with Sunovion Pharmaceuticals, Inc. On April 1, 2016, the Company entered into a license agreement with Cynapsus Therapeutics Inc. (which was later succeeded to in interest by Sunovion), referred to as the Sunovion License Agreement, pursuant to which Sunovion obtained an exclusive, worldwide license (with the right to sub-license) to certain intellectual property, including existing and future patents and patent applications, covering all oral films containing apomorphine for the treatment of off episodes in Parkinson’s disease patients. Sunovion used this intellectual property to develop its apomorphine product KYNMOBI®, which was approved by the FDA on May 21, 2020. This approval triggered Sunovion’s obligation to remit a payment of $4,000, due on the earlier of: (a) the first day of product availability at a pharmacy in the United States; or (b) within six months of FDA approval of the product. This amount was received as of September 30, 2020 and was included in License and royalty revenues for the twelve months ended December 31, 2020. Effective March 16, 2020, the Company entered into the First Amendment to the Sunovion License Agreement. The Amendment was entered into for the primary purpose of amending the Sunovion License Agreement as follows: (i) including the United Kingdom and any other country currently in the EU which later withdraws as a member country in the EU for purpose of determining the satisfaction of the condition triggering the obligation to pay the third milestone due under the Sunovion License Agreement, (ii) extending the date after which Sunovion has the right to terminate the Sunovion License Agreement for convenience from December 31, 2024 to March 31, 2028, (iii) modifying the effective inception date of the first minimum annual royalty due from Sunovion to the Company form January 1, 2020 to April 1, 2020, and (iv) modifying the termination provision to reflect the Company’s waiver of the right to terminate the Sunovion License Agreement in the event that KYNMOBI was not commercialized by January 1, 2020. This Sunovion License Agreement will continue until terminated by Sunovion in accordance with the termination provisions of the Amendment to the Sunovion License Agreement. The Sunovion License Agreement continues (on a country-by-country basis) until the expiration of all applicable licensed patents unless earlier terminated under the termination provisions contained therein. Upon termination of the Sunovion License Agreement, all rights to intellectual property granted to Sunovion to develop and commercialize apomorphine-based products will revert to the Company. On October 23, 2020, the Company amended the Sunovion License Agreement to clarify the parties' agreement with respect to certain provisions in the Sunovion License Agreement, specifically the date after which Sunovion has the right to terminate the Sunovion License Agreement and the rights and obligations of the parties regarding the prosecution and maintenance of the Company’s patents covered under the Sunovion License Agreement. In consideration of the rights granted to Sunovion under the Sunovion License Agreement, the Company received aggregate payments totaling $22,000 to date. In addition to the upfront payment of $5,000, the Company has also earned an aggregate of $17,000 in connection with specified regulatory and development milestones in the United States and Europe (the “Initial Milestone Payments”), all of which have been received to date. With the Monetization Agreement (defined below) entered into on November 3, 2020 relating to KYNMOBI as described in the paragraph below, the Company is no longer entitled to receive any payments under the Sunovion License Agreement. Purchase and Sale Agreement with an affiliate of Marathon On November 3, 2020, the Company entered into the Monetization Agreement with Marathon. Under the terms of the Monetization Agreement, the Company sold to Marathon all of its contractual rights to receive royalties and milestone payments due under the Sunovion License Agreement related to Sunovion’s apomorphine product, KYNMOBI. In exchange for the sale of these rights, the Company received an upfront payment from Marathon of $40,000 and an additional payment of $10,000 through the achievement of the first milestone. The Company has received an aggregate amount of $50,000 through June 30, 2024 under the Monetization Agreement. Under the Monetization Agreement, additional contingent payments of up to $75,000 may be due to the Company upon the achievement of worldwide royalty and other commercial targets within a specified timeframe, which could result in total potential proceeds of $125,000. In June 2023, Sunovion announced that it had voluntarily withdrawn KYNMOBI from the U.S. and Canadian markets; therefore, the Company likely will not receive any of the additional contingent payments under the Monetization agreement. See Note 15, Sale of Future Revenue for further details on the accounting for the Monetization Agreement. Agreement to Terminate CLA with Zevra Therapeutics, Inc. (formerly KemPharm) In March 2012, the Company entered into an agreement with Zevra to terminate a Collaboration and License Agreement entered into by the Company and Zevra in April 2011. Under this termination arrangement, the Company has the right to participate in any and all value that Zevra may derive from the commercialization or any other monetization of Zevra’s KP-415 and KP-484 compounds or their derivatives. Among these monetization transactions are those related to any business combinations involving Zevra and collaborations, royalty arrangements, or other transactions from which Zevra may realize value from these compounds, including the product Azstarys®. Licensing and Supply Agreement with Haisco for Exservan™ (Riluzole Oral Film) for ALS Treatment in China The Company entered into the Haisco Agreement with Haisco, a Chinese limited company listed on the Shenzhen Stock Exchange, effective as of March 3, 2022, pursuant to which Aquestive granted Haisco an exclusive license to develop and commercialize Exservan™ (riluzole oral film) for the treatment of ALS in China. Under the terms of the Haisco Agreement, Aquestive was the exclusive sole manufacturer and supplier for Exservan in China. Under the Haisco Agreement, as amended, the Company received a $7,000 upfront cash payment in September 2022, and was entitled to receive regulatory milestone payments and double-digit royalties on net sales of Exservan in China and earn manufacturing revenue upon the sale of Exservan in China. In June 2024, the Haisco Agreement was terminated and the Company will not receive any contingent payments under the Haisco Agreement. The termination agreement released all parties from any existing or ongoing obligations. Commissions of $134 that had been capitalized were expensed immediately in Selling, general, and administrative expenses on the Condensed Statements of Operations and Comprehensive (Loss) Income. The Company recognized deferred revenue of $7,000 for the upfront payment received in September 2022 on the Company's condensed financial statements for the three and six months ended June 30, 2024. Compensatory Arrangements of Certain Officers On May 17, 2022, the Company announced that Keith J. Kendall, former President and Chief Executive Officer of the Company, was leaving the Company and the Company’s Board of Directors, effective May 17, 2022. In connection with his departure, Mr. Kendall and the Company entered into a Separation Agreement, including a Consulting Agreement, dated as of May 17, 2022. Under the Separation Agreement, in addition to other severance benefits already received by Mr. Kendall in 2022, Mr. Kendall received a monthly severance payment for eighteen months following the Termination Date, or November 22, 2023. During the first quarter of 2023, net severance payments made to Mr. Kendall totaled approximately $274. By the end of December 31, 2023, all payments due to Mr. Kendall were made. Licensing and Supply Agreement with Atnahs Pharma UK Limited The Company entered into the Pharmanovia Agreement, effective as of September 26, 2022, pursuant to which the Company granted Pharmanovia an exclusive license to certain of the Company’s intellectual property to develop and commercialize Libervant™ (diazepam) Buccal Film for the treatment of prolonged or acute, convulsive seizures in all ages in the Territory (as defined in the Pharmanovia Agreement) during the term of the Pharmanovia Agreement. Under the Pharmanovia Agreement, Pharmanovia will lead the regulatory and commercialization activities for Libervant in the Territory and the Company will serve as the exclusive sole manufacturer and supplier of Libervant in the Territory. Pursuant to the Pharmanovia Agreement, the Company received $3,500 upon agreement execution and, upon the occurrence of certain conditions set forth in the Pharmanovia Agreement, will receive additional milestone payments and profit shares, as well as manufacturing fees and royalty fees through the expiration of the Pharmanovia Agreement. Effective March 27, 2023, the Company amended the Pharmanovia Agreement to expand the scope of territory for the license of Libervant to cover the rest of the world, excluding the U.S., Canada and China. Under the Pharmanovia Amendment, Pharmanovia will be responsible for seeking applicable regulatory approval in the expanded territories, which includes Latin America, Africa and Asia Pacific. Pursuant to the terms of the Pharmanovia Amendment, the Company received a non-refundable payment of $2,000 from Pharmanovia in connection with the execution of the Pharmanovia Amendment. Licensing Agreement with Assertio Holdings, Inc. Effective as of October 26, 2022, the Company entered into the Assertio Agreement to license Sympazan® (clobazam) oral film for the adjunctive treatment of seizures associated with Lennox‐Gastaut syndrome in patients aged two years of age and older. Under the terms of the Assertio Agreement, the Company granted to Assertio an exclusive, worldwide license of its intellectual property for Sympazan during the term of the Assertio License Agreement for an upfront payment of $9,000. In addition, Aquestive received a $6,000 milestone payment subsequent to Aquestive’s receipt of a notice of allowance from the PTO of the Company’s patent application U.S. Serial No. 16/561,573, and payment by the Company of the related allowance fee. The Company received the notice of allowance from the PTO and paid the related allowance fee on October 27, 2022. Further, under the Assertio Agreement, the Company will receive royalties from Assertio for the sale of the product through the expiration of the Assertio Agreement. The Company also entered into a long-term supply agreement with Assertio for Sympazan pursuant to which the Company is the exclusive sole worldwide manufacturer and supplier of the product and will receive manufacturing fees from Assertio for the product through the expiration of such supply agreement. Licensing Agreement with Mitsubishi Tanabe Pharma America, Inc. In January 2021, the Company announced that Aquestive granted an exclusive license to MTPA for the commercialization in the United States of Exservan. MTPA is a multinational pharmaceutical company with a focus on patients with ALS. The product was launched by MTPA in June 2021. Under the terms of the MTPA license agreement, Aquestive was the exclusive manufacturer and supplier of Exservan for MTPA in the United States. In June 2024, under the Second Amendment to the License and Supply Agreement, MTPA and the Company mutually agreed to terminate the agreement. As of June 30, 2024 and as part of the termination, the parties were released from any existing or ongoing obligations (except for the limited post-termination obligations). Upon termination, deferred revenue of $3,317 was recognized for milestone payments that had been received. Commissions of $57 that had been capitalized were expensed immediately in Selling, general, and administrative expenses on the Condensed Statements of Operations and Comprehensive (Loss) Income for the three and six months ended June 30, 2024.

v3.24.2.u1

Financial Instruments – Fair Value Measurements	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Financial Instruments – Fair Value Measurements	Financial Instruments – Fair Value Measurements Certain assets and liabilities are reported on a recurring basis at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: •Level 1 — Observable quoted prices in active markets for identical assets or liabilities. •Level 2 — Observable prices that are based on inputs not quoted on active markets but corroborated by market data. •Level 3 — Unobservable inputs that are supported by little or no market activity, such as pricing models, discounted cash flow methodologies and similar techniques. The carrying amounts reported in the balance sheets for trade and other receivables, prepaid and other current assets, accounts payable and accrued expenses, and deferred revenue approximate their fair values based on the short-term maturity of these assets and liabilities. The Company granted warrants to certain noteholders in connection with its debt repayment and debt refinancing during 2020 and 2019, respectively. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation. See Note 14, Warrants for further information on these warrants. The Company’s 12.5% Senior Secured Notes contained a repurchase offer or put option which gave holders of the option the right, but not the obligation, to require the Company to redeem the 12.5% Notes up to a capped portion of milestone payments resulting from the Monetization Agreement. This put option was valued based on Level 3 inputs and its fair value was based primarily on an independent third-party appraisal consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants Accounting and Valuation Guide. See Note 13, Long-Term Debt for further discussion. In June 2022, the Company issued pre-funded warrants to purchase up to 4,000,000 shares of Common Stock and Common Stock Warrants to purchase up to 8,850,000 shares of Common Stock in connection with its Securities Purchase Agreements with certain purchasers. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide. See Note 14, Warrants for further information on these warrants. On August 1, 2023, the Company entered into the Letter Agreement with the Exercising Holder of the remaining warrants to purchase 5,000,000 of the shares of Common Stock. Pursuant to the Letter Agreement, the Exercising Holder and the Company agreed that the Exercising Holder would exercise all of its Existing Warrants for shares of Common Stock underlying the Existing Warrants at $0.96 per share of Common Stock, the current exercise price of the Existing Warrants. Under the Letter Agreement, in consideration of the Exercising Holder exercising the Existing Warrants, the Company issued to the Exercising Holder New Warrants to purchase up to an aggregate of 2,750,000 shares of Common Stock at $2.60 per share. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide. See Note 14, Warrants for further information on these warrants. On November 1, 2023, in connection with the issuance of the 13.5% Notes, the Company and the Note Holders entered into the Royalty Right Agreements dated as of November 1, 2023, which provided the Note Holders: a.a tiered royalty between 1.0% and 2.0% of annual worldwide net sales of Anaphylm™ (epinephrine) Sublingual Film for a period of eight years from the first sale of Anaphylm on a global basis, and b.a tiered royalty between 1.0% to 2.0% of annual worldwide net sales of Libervant™ (diazepam) Buccal Film until the earlier of (1) the first sale of Anaphylm and (2) eight years from the first sale of Libervant. Those Royalty Agreements were valued based on Level 3 inputs and their fair value was based primarily on internal management estimates developed based on third-party data and reflect management’s judgements, the then current market conditions, and forecasts. The initial fair value measurement of the Royalty Right Agreements was determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, and the estimated amount of future sales of Anaphylm and Libervant. See Note 13, Long-Term Debt for further discussion.

v3.24.2.u1

Inventories	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories The components of Inventory are as follows:   June 30, 2024 December 31, 2023 Raw material $ 3,090  $ 2,118  Packaging material 2,456  3,028  Finished goods 1,420  1,623  Total inventory $ 6,966  $ 6,769

v3.24.2.u1

Property and Equipment, Net	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Useful Lives June 30, 2024 December 31, 2023 Machinery 3-15 years $ 20,299  $ 20,248  Furniture and fixtures 3-15 years 769  769  Leasehold improvements (a) 21,386  21,386  Computer, network equipment and software 3-7 years 2,627  2,627  Construction in progress   2,045  2,033      47,126  47,063  Less: accumulated depreciation and amortization   (43,205) (42,884) Total property and equipment, net   $ 3,921  $ 4,179  (a)Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives. Total depreciation, amortization, and impairment related to property and equipment was $165 and $250 for the three months ended June 30, 2024 and 2023, respectively. For the respective six month periods, these expenses totaled $333 and $536.

v3.24.2.u1

Right-of-Use Assets and Lease Obligations	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Right-of-Use Assets and Lease Obligations	Right-of-Use Assets and Lease Obligations The Company leases all realty used at its production and warehouse facilities, corporate headquarters, commercialization operations center and research and laboratory facilities. None of these three leases include the characteristics specified in ASC 842, Leases, which require classification as financing leases and, accordingly, these leases are accounted for as operating leases. These leases, as amended, provide remaining terms between 3.8 years and 9.3 years, including renewal options expected to be exercised to extend the lease periods. During the year ended December 31, 2023, the Company recognized a lease supporting its manufacturing facilities as a finance lease. Commitments under finance leases are not significant, and are included in Property and equipment, net, and Notes payable, net on the Condensed Balance Sheets. The Company does not recognize a right-to use asset and lease liability for short-term leases, which have terms of 12 months or less on its Condensed Balance Sheets. For longer-term lease arrangements that are recognized on the Company’s Condensed Balance Sheets, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. The costs associated with the Company’s short-term leases, as well as variable costs relating to the Company’s lease arrangements, are not material to the Company’s financial results. The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under an arrangement. Measurement of the operating lease liability reflects a range of an estimated discount rate of 14.8% to 15.6% applied to minimum lease payments, including expected renewals, based on the incremental borrowing rate experienced in the Company’s collateralized debt refinancing. The Company’s lease costs are recorded in manufacture and supply, research and development and selling, general and administrative expenses in its Condensed Statements of Operations and Comprehensive (Loss) Income. For the three and six months ended June 30, 2024, total operating lease expenses totaled $444 and $888, respectively, including variable lease expenses such as common area maintenance and operating costs of $111 and $226, respectively. For the three and six months ended June 30, 2023, total operating lease expenses totaled $452 and $870, respectively, including variable lease expenses such as common area maintenance and operating costs of $121 and $229, respectively. The Company’s payments due under its operating leases are as follows: Remainder of 2024 $ 629  2025 1,284  2026 1,318  2027 1,346  2028 and thereafter 5,094  Total future lease payments 9,671  Less: imputed interest (3,978) Total operating lease liabilities $ 5,693

v3.24.2.u1

Intangible Assets, Net	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	Intangible Assets, Net The following table provides the components of identifiable intangible assets, all of which are finite lived:   June 30, 2024 December 31, 2023 Purchased intangible $ 3,858  $ 3,858  Purchased patent 509  509    4,367  4,367  Less: accumulated amortization (4,367) (3,089) Intangible assets, net $ —  $ 1,278  Amortization expense was $39 for each of the three-month periods ended June 30, 2024 and 2023. For each of the corresponding six-month periods, these expenses totaled $78. In connection with a termination of an agreement, the Company recorded a gain on termination of the contract in the amount of $1,500, which was partially offset by an adjustment to the remaining balance of $1,200 of the intangible asset. The net gain of $300 was recorded within Other income, net on the Condensed Statements of Operations and Comprehensive (Loss) Income for the three and six month periods ended June 30, 2024. See Note 5, Material Agreements.

v3.24.2.u1

Other Non-current Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Other Non-current Assets	Other Non-current Assets The following table provides the components of other non-current assets:   June 30, 2024 December 31, 2023 Royalty receivable $ 3,000  $ 4,000  Other 1,238  1,438  Total other non-current assets $ 4,238  $ 5,438  During the second quarter of 2020, under the Sunovion License Agreement, the Company recognized $8,000 of royalty revenue and corresponding royalty receivable, related to the eight $1,000 annual minimum guaranteed royalty payments that are due to the Company. In connection with the Monetization Agreement, the Company performed an assessment under ASC 860, Transfer and Servicing to determine whether the existing receivable was transferred to Marathon and concluded it was not transferred. As of June 30, 2024 and December 31, 2023, Royalty receivable consists of four and five, respectively, annual minimum payments due from Sunovion, the last of which is due in March 2028. The current portion of the royalty receivable is included in Trade and other receivables, net. See Note 15, Sale of Future Revenue for further details on how this receivable relates to the Monetization Agreement transaction. As of June 30, 2024, commissions of $191 that had been capitalized under ASC 340 as part of licensing and supply agreements and had been recorded within Other non-current assets on the Condensed Balance Sheet were expensed in Selling, general, and administrative expenses on the Condensed Statements of Operations and Comprehensive (Loss) Income due to the termination of these contracts.

v3.24.2.u1

Accrued Expenses	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following:   June 30, 2024 December 31, 2023 Accrued compensation $ 2,667  $ 4,202  Real estate and personal property taxes 382  337  Accrued distribution expenses and sales returns provision 653  645  Interest payable 1,536  1,013  Other 436  300  Total accrued expenses $ 5,674  $ 6,497  The reduction in Accrued compensation is mostly related to payments of accrued bonus during the six months ended June 30, 2024. The increase in Interest payable is mostly due to the interest incurred on 13.5% Senior Notes. The 13.5% Senior Notes were issued on November 1, 2023 thus accruing only two months of interest as of December 31, 2023. As of June 30, 2024 the balance represented a three month accrual. Payments were due on January 2, 2024 and July 1, 2024, respectively. See Note 13, Long-Term Debt , for discussion of 13.5% Notes and related interest payable. Accrued distribution expenses and sales returns provision mostly represent estimated liabilities for returns and other expenses related to the proprietary product Sympazan (prior to outlicensing to Assertio in October 2022).

v3.24.2.u1

Long-Term Debt	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt 12.5% Senior Secured Notes On July 15, 2019, the Company completed a private placement of up to $100,000 aggregate principal of its 12.5% Notes which were due 2025 and issued Warrants to purchase 2,000,000 shares of Common Stock at $0.001 par value per share. Upon closing of the Base Indenture, the Company issued $70,000 of the 12.5% Notes (the “Initial Notes”) along with the Warrants and rights of first offer (the “First Offer Rights”) to the noteholders participating in this transaction. Issuance of the Initial Notes and Warrants provided net proceeds of $66,082. On November 3, 2020, the Company entered into the First Supplemental Indenture (the “First Supplemental Indenture” and, together with all other subsequent supplemental indentures and the Base Indenture, collectively, the “Indenture”) by and among the Company and U.S. Bank National Association, as Trustee (the “Trustee”) and Collateral Agent thereunder to the Base Indenture, by and between the Company and the Trustee. Under the Second Supplemental Indenture, the Company repaid $22,500 of its $70,000 outstanding 12.5% Notes from the upfront proceeds received under the Monetization Agreement. Further, the Company entered into an additional Purchase Agreement with its noteholders whereby the Company issued in aggregate $4,000 of additional 12.5% Notes (the “Additional Notes”) in lieu of paying a prepayment premium to two noteholders on the early repayment of the 12.5% Notes discussed above. The result of these two transactions reduced the net balance of the Company’s 12.5% Notes outstanding in the aggregate to $51,500 at December 31, 2020. The $4,000 principal issuance would be repaid proportionally over the same maturities as the other 12.5% Notes. The Company also paid to one of its noteholders a $2,250 premium as result of the early retirement of debt. The Company accounted for the $22,500 debt repayment as a debt modification of the 12.5% Notes. The fees paid to noteholders inclusive of (i) a $2,250 early premium prepayment and (ii) $4,000 issuance of Additional Notes in lieu of paying a prepayment penalty were recorded as additional debt discount, amortized over the remaining life of the 12.5% Notes using the effective interest method. Loan origination costs of $220 associated with the Additional Notes were expensed as incurred. Existing deferred discounts and loan origination fees on the 12.5% Notes are amortized as an adjustment of interest expense over the remaining term of modified debt using the effective interest method. The First Supplemental Indenture contained a provision whereby, as the Company receives any cash proceeds from the Monetization Agreement, each noteholder had the right to require the Company to redeem all or any part of such noteholder’s outstanding 12.5% Notes at a repurchase price in cash equal to 112.5% of the principal amount, plus accrued and unpaid interest. This repurchase offer was capped at 30% of the cash proceeds received by the Company as the contingent milestones were attained, if any, up through June 30, 2025. The embedded put option was deemed to be a derivative under ASC 815, Derivatives and Hedging, which required the recording of the embedded put option at fair value subject to remeasurement at each reporting period. Accordingly, a valuation study was performed by an independent third party appraiser and updated as of June 30, 2023. Based on the valuation study, the put option was valued at $0 and has been recorded in Other non-current liabilities. The put option fair value increased by $13 and decreased by $58 and was recorded in interest income and other income, net on the Condensed Statements of Operations and Comprehensive (Loss) for the three and six months ended June 30, 2023, respectively. In addition, as of the closing of this transaction, the Company issued to the holders of the 12.5% Notes warrants to purchase 143,000 shares of the Company’s Common Stock. As of June 30, 2024, the put option is no longer in place due to the refinancing of the 12.5% Notes. On October 7, 2021, the Company entered into the Fourth Supplemental Indenture, pursuant to which the amortization schedule for the 12.5% Notes was amended to provide for the date of the first principal payment to be extended from September 30, 2021 to March 30, 2023. The Fourth Supplemental Indenture did not change the maturity date of the 12.5% Notes or the interest payment obligation due under the 12.5% Notes. In connection with the Fourth Supplemental Indenture, the Company entered into a Consent Fee Letter with the holders of the 12.5% Notes (the “Consent Fee Letter”), pursuant to which the Company agreed to pay the holders of the 12.5% Notes an additional cash payment ("Consent Fee") of $2,700 in the aggregate, payable in four quarterly payments beginning May 15, 2022. The last Consent Fee installment of $675 was made in February 2023. The 12.5% Notes provided a stated fixed interest rate of 12.5%, payable quarterly in arrears, with the final quarterly principal repayment of the 12.5% Notes due at maturity on June 30, 2025. The Company could have elected, at its option, to redeem the 12.5% Notes at any time at premiums that range from 101.56% of outstanding principal if prepayment occurs on or after the fifth anniversary of the issue date of the Initial Notes to 112.50% if payment occurs during the third year after the issuance of the 12.5% Notes. The Indenture also included change of control provisions under which the Company would have been required to redeem the 12.5% Notes at 101% of the remaining principal plus accrued interest at the election of the noteholders. During the six months ended June 30, 2023, the Company redeemed $5,647 of its outstanding 12.5% Notes. The Company also paid $353 in prepayment premium as result of the early retirement of debt which was reflected as a loss on extinguishment of debt. The prepayments along with the scheduled principal payments of $6,878 in the first half of 2023 reduced the net balance of the 12.5% Notes outstanding in the aggregate to $38,975 as of June 30, 2023. Amortization expense arising from amortization of deferred debt issuance costs and debt discounts related to the 12.5% Notes for the three and six months ended June 30, 2023 was $4 and $8, respectively. On November 1, 2023, the Company issued the 13.5% Notes, as described below, and used most of the proceeds from the issuance to repay the outstanding principal balance under the 12.5% Notes of $36,014, including accrued and unpaid interest and a redemption fee. 13.5% Senior Secured Notes On November 1, 2023, the Company entered into an Indenture Agreement with certain institutional investors (the “Note Holders”) and issued $45,000 aggregate principal amount of its 13.5% Notes due 2028. The Company received net proceeds of approximately $4,326 from this transaction after the repayment of the 12.5% Notes and deduction of debt discount, and debt issuance costs. The 13.5% Notes are senior secured obligations of the Company and mature on November 1, 2028. The 13.5% Notes bear interest at a fixed rate of 13.5% per year, payable quarterly commencing on December 30, 2023; the first interest payment was due and paid on January 2, 2024. On each payment date commencing on June 30, 2026, the Company will pay an installment of principal of the 13.5% Notes pursuant to a fixed amortization schedule, along with the applicable Exit Fee. The Exit Fee totals $2,000. The Company may, at its option, redeem the 13.5% Notes in full or in part: a.if such redemption occurs prior to November 1, 2025, at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, plus the applicable Exit Fee, plus an Applicable Premium which is the greater of i.1.0% of the principal redeemed; and ii.the amount, if any, by which the present value of the principal to be redeemed on November 1, 2025, plus all required interest due on such date, computed using a discount rate equal to the Treasury Rate, plus 100 basis points, exceeds the amount of principal to be redeemed; and b.if such redemption occurs after November 1, 2025, the redemption price is equal to 108.5% of the principal amount plus accrued and unpaid interest, plus the applicable Exit Fee. If the Company undergoes a change of control, the Note Holders may require the Company to repurchase for cash all or any portion of the 13.5% Notes at a change of control repurchase price equal at 108.5% plus the Exit Fee of the remaining principal, plus accrued interest at the election of the Note Holders. The Indenture permits the Company, upon the continuing satisfaction of certain conditions, including that the Company has at least $100,000 of net revenues for the most recently completed twelve calendar month period, to enter into an ABL facility not to exceed $10,000. The ABL Facility may be collateralized only by assets of the Company constituting inventory, accounts receivable, and the proceeds thereof. In connection with the issuance of 13.5% Notes, the Company and the Note Holders entered into the Royalty Right Agreements dated as of November 1, 2023, which provides Note Holders: a.a tiered royalty between 1.0% and 2.0% of annual worldwide net sales of Anaphylm™ (epinephrine) Sublingual Film for a period of 8 years from the first sale of Anaphylm on a global basis, and b.a tiered royalty between 1.0% to 2.0% of annual worldwide net sales of Libervant™ (diazepam) Buccal Film until the earlier of (1) the first sale of Anaphylm and (2) eight years from the first sale of Libervant. Both the 13.5% Notes and Royalty Right Agreements, represent freestanding instruments which were issued in conjunction with each other. They are classified as debt within the scope of ASC 470, Debt and are subsequently measured on an amortized cost basis. The initial fair value measurement of the Royalty Right Agreements was determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, and the estimated amount of future sales of Anaphylm and Libervant. These inputs are derived using internal management estimates developed based on third-party data and reflect management’s judgements, current market conditions, and forecasts. The Royalty Right Agreements’ fair value is estimated by applying probability-weighted cash flows for future sales, which are then discounted to present value. Changes to fair value of the Royalty Rights Agreements can result from changes to one or a number of the aforementioned inputs. A significant change in unobservable inputs could result in a material increase or decrease to the effective interest rate of the Royalty Right Agreements liability. As of June 30, 2024, there were no material changes to the significant unobservable inputs used to recognize the Royalty Right Agreements liability. The following table summarizes the significant unobservable inputs used in the initial fair value measurement of the Royalty Right Agreements: Valuation Methodology Significant Unobservable Input Weighted Average (range, if applicable) Discount Rate 15% Royalty Right Agreements Probability weighted income approach Probability of Success 75% Projected Years of Payments 2025 - 2033 Since the Royalty Right Agreements were issued in connection with the 13.5% Notes, the Company allocated the proceeds to the two instruments based on their relative fair values. The Company allocated approximately $13,856 to the Royalty Right Agreements. The Company determined the allocated fair value by calculating the present value of estimated future royalties to be paid to Note Holders over the life of the arrangement. The excess of future estimated royalty payments of $56,926 over the $13,856 of allocated fair value is recognized as a discount related to the Royalty Right Agreements and is amortized as interest expense using the effective interest method. At inception, the allocated amounts of $13,856 when combined with the Exit Fee of $2,000, original issue discount of $1,125 and debt issuance costs of $3,517, resulted in a debt discount of $20,498. The debt discount is being amortized over the term of 13.5% Notes using the effective interest method. Amortization expense arising from the discounts related to the 13.5% Notes for the three and six months ended June 30, 2024 was $1,254 and $2,511, respectively. Amortization expense arising from the discounts related to the Royalty Right Agreements for the three and six months ended June 30, 2024 was $1,358 and $2,716, respectively. Unamortized discounts totaled $15,154 and $17,665 for the 13.5% Notes and $39,449 and $42,165 for the Royalty obligations as of June 30, 2024 and December 31, 2023, respectively. Long-term notes and unamortized debt discount balances are as follows:   June 30, December 31,   2024 2023 Total outstanding notes $ 45,000  $ 45,000  Unamortized discount, including Exit Fee (15,154) (17,665) Notes payable, long-term 29,846  27,335  Finance lease 160  173  Notes payable, net $ 30,006  $ 27,508    June 30, December 31,   2024 2023 Royalty obligations $ 56,926  $ 56,926  Unamortized discount (39,449) (42,165) Royalty obligations, net $ 17,477  $ 14,761  Scheduled principal payments on the 13.5% Notes as of June 30, 2024 are as follows: Remainder of 2024 $ —  2025 —  2026 9,540  2027 14,535  2028 20,925  Total $ 45,000

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Warrants	6 Months Ended
	Jun. 30, 2024
Warrants and Rights Note Disclosure [Abstract]
Warrants	Warrants Warrants Issued to 12.5% Senior Secured Noteholders Warrants that were issued in conjunction with the Initial Notes (the “Initial Warrants”) and Additional Notes (the “Additional Warrants”) expire on June 30, 2025 and entitled the noteholders to purchase up to 2,143,000 shares of Common Stock and included specified registration rights. Management estimated the fair value of the Initial Warrants to be $6,800 and the Additional Warrants to be $735, each based on an assessment by an independent third-party appraiser. The fair value of the respective warrants was treated as a debt discount, amortizable over the term of the respective warrants, with the unamortized 12.5% Notes portion applied to reduce the aggregate principal amount of the 12.5% Notes. Additionally, since the Initial Warrants and Additional Warrants issued do not provide warrant redemption or put rights within the control of the holders that could require the Company to make a payment of cash or other assets to satisfy the obligations under the warrants, except in the case of a “cash change in control”, the fair value attributed to the warrants is presented in Additional Paid-in Capital in the Company’s unaudited Condensed Balance Sheets. There were no warrants exercised as it relates to the Initial Warrants and the Additional Warrants during the six months ended June 30, 2024 and 2023, respectively. Warrants to purchase a total of 1,714,429 shares of Common Stock with exercise prices of $4.25 and $5.38 for 1,571,429 warrants and 143,000 warrants, respectively, remain outstanding as of June 30, 2024 and December 31, 2023. See Note 13, Long-Term Debt. Warrants Issued Under Securities Purchase Agreements In June 2022, the Company issued pre-funded warrants and Common Stock warrants to certain purchasers in connection with the Securities Purchase Agreements. The pre-funded warrants entitled purchasers to purchase up to 4,000,000 shares of Common Stock and were exercised in full during the year ended December 31, 2022. The Common Stock warrants expire on June 8, 2027 and entitled the purchasers to purchase up to 8,850,000 shares of Common Stock at an exercise price of $0.96 per share. Management estimated the fair value of the pre-funded warrants and Common Stock warrants to be $5,874 based on an assessment by an independent third-party appraiser. The fair value of the pre-funded and Common Stock warrants is treated as equity and presented in Additional Paid-in Capital in the Company’s unaudited Condensed Balance Sheets. On June 14, 2023, 3,689,452 Common Stock warrants issued pursuant to the Securities Purchase Agreements were exercised with proceeds of approximately $3,542. On August 1, 2023, the Company entered into the Letter Agreement with the Exercising Holder of 5,000,000 of the remaining Common Stock Warrants. Pursuant to the Letter Agreement, the Exercising Holder and the Company agreed that the Exercising Holder would exercise all of its Existing Warrants for shares of Common Stock underlying the Existing Warrants at $0.96 per share of Common Stock, the current exercise price of the Existing Warrants. Under the Letter Agreement, in consideration of the Exercising Holder exercising the Existing Warrants, the Company issued to the Exercising Holder New Warrants to purchase up to an aggregate of 2,750,000 shares of Common Stock. The New Warrants are exercisable after February 2, 2024, expire on February 2, 2029 and are issuance only for cash, subject to exception if the shares of Common Stock underlying the New Warrants are not registered in accordance with the terms of the Letter Agreement, in which case the New Warrants may also be exercised, in whole or in part, at such time by means of a "cashless exercise". The New Warrants have an exercise price of $2.60 per share. Management estimated the fair value of the warrants to be $4,671 based on an assessment by an independent third-party appraiser. The fair value of the New Warrants is treated as equity and is presented in Additional Paid-in Capital in the Company’s Condensed Balance Sheets. On August 2, 2023, 5,000,000 of the Existing Warrants were exercised pursuant to the Securities Purchase Agreement with the Exercising Holder, with the Company receiving gross proceeds therefrom of $4,800. In total, 8,689,452 Common Stock warrants issued pursuant to the Securities Purchase Agreements with net proceeds of approximately $8,307 were exercised during the year ended December 31, 2023. The Company incurred $35 in relation to this transaction. There were no warrants exercised as it relates to the Warrants Issued Under Securities Purchase Agreements during the six months ended June 30, 2024 or 2023, respectively. In addition to the warrants to purchase 2,750,000 shares of Common Stock described above, there remain outstanding warrants to purchase 160,548 shares of Common Stock at an exercise price of $0.96 and warrants to purchase 1,714,429 shares of Common Stock outstanding related to the original issuance of the 12.5% Notes prior to the debt refinancing described above in this Note 14, with exercise prices of $4.25 and $5.38 for 1,571,429 warrants and 143,000 warrants, respectively.

v3.24.2.u1

Sale of Future Revenue	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Sale of Future Revenue	Sale of Future Revenue On November 3, 2020, the Company entered into the Monetization Agreement with Marathon. Under the terms of the Monetization Agreement, the Company sold all of its contractual rights to receive royalties and milestone payments due under the Sunovion License Agreement related to Sunovion’s apomorphine product, KYNMOBI, an apomorphine film therapy for the treatment of off episodes in Parkinson’s disease patients, which received approval from the FDA on May 21, 2020. In exchange for the sale of these rights, the Company received an upfront payment of $40,000 and an additional payment of $10,000 through the achievement of the first milestone. The Company has received an aggregate amount of $50,000 through June 30, 2024 under the Monetization Agreement. Under the Monetization Agreement, additional contingent payments of up to $75,000 may be due to the Company upon the achievement of worldwide royalty and other commercial targets within a specified timeframe, which could result in total potential proceeds of $125,000. The Company recorded the upfront proceeds of $40,000 and subsequent first milestone of $10,000, reduced by $2,909 of transaction costs, as a liability related to the sale of future revenue that will be amortized using the effective interest method over the life of the Monetization Agreement. As future contingent payments are received, they will increase the balance of the liability related to the sale of future revenue. Although the Company sold all of its rights to receive royalties and milestones, as a result of ongoing obligations related to the generation of these royalties, the Company will account for these royalties as revenue. Its ongoing obligations include the maintenance and defense of the intellectual property and to provide assistance to Marathon in executing a new license agreement for KYNMOBI in the event Sunovion terminates the Sunovion License Agreement in one or more jurisdictions of the licensed territory under the Sunovion License Agreement. The accounting liabilities, as adjusted over time, resulting from this transaction and any non-cash interest expenses associated with those liabilities do not and will not represent any obligation to pay or any potential future use of cash. During the second quarter of 2020, under the Sunovion License Agreement, the Company recognized $8,000 of royalty revenue and corresponding royalty receivable, related to the $1,000 annual minimum guaranteed royalty that is due. In connection with the Monetization Agreement, the Company performed an assessment under ASC 860, Transfer and Servicing to determine whether the existing receivable was transferred to Marathon and concluded that the receivable was not transferred. As royalties are remitted to Marathon from Sunovion, the collection of the royalty receivable and balance of the liability related to the sale of future revenue will be effectively repaid over the life of the agreement. In order to determine the amortization of the liability related to the sale of future revenue, the Company is required to estimate the total amount of future royalty and milestone payments to Marathon over the life of the Monetization Agreement and contingent milestone payments from Marathon to the Company. The sum of future royalty payments less the $50,000 in proceeds received and future contingent payments has been recorded as interest expense over the life of the Monetization Agreement. At execution, the estimate of this total interest expense resulted in an effective annual interest rate of approximately 24.9%. This estimate contained significant assumptions that impact both the amount recorded at execution and the interest expense that will be recognized over the life of the Monetization Agreement. The Company will periodically assess the estimated royalty and milestone payments to Marathon from Sunovion and contingent milestone payments from Marathon to the Company. To the extent the amount or timing of such payments is materially different from the original estimates, an adjustment will be recorded prospectively to increase or decrease interest expense. There are a number of factors that could materially affect the amount and timing of royalty and milestone payments to Marathon from Sunovion and, correspondingly, the amount of interest expense recorded by the Company, most of which are not under the Company’s control. Such factors include, but are not limited to, changing standards of care, the initiation of competing products, manufacturing or other delays, generic competition, intellectual property matters, adverse events that result in government health authority imposed restrictions on the use of products, significant changes in foreign exchange rates as the royalties remitted to Marathon are made in U.S. dollars (USD) while a portion of the underlying sales of KYNMOBI will be made in currencies other than USD, and other events or circumstances that are not currently foreseen. Changes to any of these factors could result in increases or decreases to both royalty revenue and interest expense related to the sale of future revenue. In June 2023, Sunovion announced that it had voluntarily withdrawn KYNMOBI from the U.S. and Canadian markets. Therefore, the Company likely will not receive any of the additional contingent payments under the Monetization agreement. Further, the Company discontinued recording interest expense related to the sale of future revenue during the fourth quarter of 2022. The following table shows the activity of the liability related to the sale of future revenue: June 30, December 31, 2024 2023 Liability related to the sale of future revenue, net at beginning of the period $ 64,490  $ 65,259  Royalties related to the sale of future revenue (922) (989) Amortization of issuance costs 116  220  Liability related to the sale of future revenue, net at end of the period (includes current portion of $1,000 and $922, respectively) $ 63,684  $ 64,490

v3.24.2.u1

Net (Loss) Earnings Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net (Loss) Earnings Per Share	Net (Loss) Earnings Per Share Basic net (loss) earnings per share is calculated by dividing net (loss) income by the weighted-average number of common shares. The following table reconciles the basic to diluted weighted average shares outstanding for the three and six months ended June 30, 2024 and 2023. Diluted EPS is adjusted by the effect of dilutive securities, including options and awards under the Company’s equity compensation plans, warrants and ESPP. As a result of the Company’s net loss incurred for the three months ended June 30, 2024 and 2023, and for the six months ended June 30, 2024. all potentially dilutive instruments outstanding would have anti-dilutive effects on per-share calculations. Therefore, basic and diluted net loss per share are the same for the three months ended June 30, 2024 and 2023 and six months ended 2024 as reflected below.   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Numerator: Net (loss) income $ (2,745) $ (5,792) $ (15,573) $ 2,276  Denominator: Weighted-average number of common shares – basic 90,911,626  57,350,902  82,263,168  56,494,805  Effect of stock options (a) —  —  —  46,043  Effect of restricted stock units (b) —  —  —  468,036  Effect of warrants (c) —  —  —  1,910,742  Effect of Employee Stock Purchase Plan (d) —  —  —  18,596  Weighted-average number of common shares – diluted 90,911,626  57,350,902  82,263,168  58,938,222  (Loss) Earnings per share attributable to common stockholders: (Loss) Earnings per common share – basic $ (0.03) $ (0.10) $ (0.19) $ 0.04  (Loss) Earnings per common share – diluted $ (0.03) $ (0.10) $ (0.19) $ 0.04  (a)For the three months ended June 30, 2024 and 2023, outstanding stock options of 6,438,239 and 5,919,522 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding stock options of 6,438,239 and 5,794,522 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. (b)For the three months ended June 30, 2024 and 2023, outstanding restricted stock units of 3,935,201 and 2,477,738 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding restricted stock units of 3,935,201 and 743,438. shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. (c)For the three months ended June 30, 2024 and 2023, outstanding warrants of 4,624,977 and 6,874,977 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding warrants of 4,624,977 and 1,714,429 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS. (d)For the three and six months ended June 30, 2024 and the three months ended June 30, 2023, the estimated effects of ESPP awards were not material.

v3.24.2.u1

Share-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation The Company recognized share-based compensation in its unaudited Condensed Statements of Operations and Comprehensive (Loss) Income during 2024 and 2023 as follows:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Manufacture and supply $ 99  $ 55  $ 169  $ 96  Research and development 308  100  478  172  Selling, general and administrative 1,132  493  2,472  724  Total share-based compensation expenses $ 1,539  $ 648  $ 3,119  $ 992  Share-based compensation from: Restricted stock units $ 1,000  $ 195  $ 1,933  $ 220  Stock options 523  436  1,170  755  Employee stock purchase plan (ESPP) 16  17  16  17  Total share-based compensation expenses $ 1,539  $ 648  $ 3,119  $ 992  Share-Based Compensation Equity Awards The following tables provide information about the Company’s restricted stock unit and stock option activity during the six month period ended June 30, 2024: Restricted Stock Unit Awards (RSUs) - Service-based: Number of Units Weighted Average Grant Date Fair Value   (in thousands)   Unvested as of December 31, 2023 1,948  $ 0.97  Granted 1,388  $ 5.61  Vested (570) $ 0.89  Forfeited (13) $ 2.65  Unvested as of June 30, 2024 2,753  $ 3.32  Vested and expected to vest as of June 30, 2024 2,534  $ 3.29  As of June 30, 2024, $7,261 of total unrecognized compensation expenses related to unvested service-based restricted stock units are expected to be recognized over a remaining weighted average period of 2.19 years. The service-based restricted stock units granted to employees are subject to a three-year graduated vesting schedule and are not subject to performance-based criteria other than continued employment. Restricted Stock Unit Awards (RSUs) - Market conditions vesting-based: Number of Units Weighted Average Grant Date Fair Value   (in thousands)   Unvested as of December 31, 2023 1,332  $ 2.40  Vested (150) 2.40  Forfeited —  —  Unvested as of June 30, 2024 1,182  $ 2.40  Vested and expected to vest as of June 30, 2024 1,075  $ 2.40  As of June 30, 2024, $1,658 of unrecognized compensation expense related to unvested market condition vesting- based restricted stock units are expected to be recognized over a remaining weighted average period of 1.85 years. The market conditions vesting-based restricted stock units vest based on a Performance Price measured as the 30-day average of the closing prices of the Company’s common stock as reported on the NASDAQ Stock Market immediately prior to and including the last calendar day of the three-year performance period (which ends on the third anniversary of the grant date). To the extent the Performance Price is less than $1.75, the Vesting Percentage will be zero. To the extent the Performance Price is $1.75, the Vesting Percentage will be 50%. To the extent the Performance Price is $1.76 or greater, but less than $2.50, the Vesting Percentage will be a prorated amount between 50.01% and 99.99%, based on straight-line interpolation. To the extent the Performance Price is $2.50, the Vesting Percentage will be 100%. To the extent the Performance Price is $2.51 or greater, but less than $3.25, the Vesting Percentage will be a prorated amount between 100.01% and 149.99%, based on straight-line interpolation. To the extent the Performance Price is $3.25 or greater, the Vesting Percentage will be 150%. In no event will the Vesting Percentage exceed 150%. 2022 Inducement Equity Incentive Plan In accordance with NASDAQ Listing Rule 5635(c)(4), the Company adopted the 2022 Equity Inducement Plan approved by the Compensation Committee of the Board of Directors of the Company effective as of July 29, 2022. There were no awards outstanding under this Plan as of June 30, 2024. Stock Option Awards: Number of Options Weighted Average Exercise Price   (in thousands) Outstanding as of December 31, 2023 5,733  $ 5.58  Granted 1,024  4.83  Exercised (231) 2.33  Forfeited/Expired (88) 4.22  Outstanding as of June 30, 2024 6,438  $ 5.59  Vested and expected to vest as of June 30, 2024 6,326  $ 5.62  Exercisable as of June 30, 2024 4,719  $ 6.34  The fair values of stock options granted were estimated using the Black-Scholes pricing model based on the following assumptions: Six Months Ended June 30, Expected dividend yield —% Expected volatility 104% - 107% Expected term (years) 5.5 - 6.1 Risk-free interest rate 4.1% - 4.5% The weighted average grant date fair value of stock options granted during the six months ended June 30, 2024 was $3.98. During the six months ended June 30, 2024, stock options were granted with an exercise price of $4.83 and accordingly, given the Company’s share price of $2.60 at June 30, 2024, the intrinsic value provided by certain shares granted during this period was de minimis. As of June 30, 2024, $4,033 of unrecognized compensation expense related to non-vested stock options is expected to be recognized over a remaining weighted average period of 1.76 years.

v3.24.2.u1

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company has accounted for income taxes under the asset and liability method, which requires deferred tax assets and liabilities to be recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts and respective tax bases of existing assets and liabilities, as well as net operating loss carryforwards and research and development credits. Valuation allowances are provided if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. For the three and six months ended June 30, 2024, the effective income tax rate was 0%, and the Company recorded no income tax expense from its pretax losses of $2,745 and $15,573, respectively. For the three and six months ended June 30, 2023, the effective income tax rate was (5.2%) and 11.1%, respectively, and the Company recorded $284 and $284 from its pretax (loss) income of ($5,508) and $2,560 , respectively. The primary factors impacting the effective tax rate for six months ended June 30, 2024 is the anticipated full year pre-tax book loss and a full valuation allowance against any associated net deferred tax assets.

v3.24.2.u1

Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies From time to time, the Company has been and may again become involved in legal proceedings arising in the course of its business, including product liability, intellectual property, securities, civil tort, and commercial litigation, and environmental or other regulatory matters. Patent-Related Litigation Indivior Inc., Indivior UK Ltd., and Aquestive Therapeutics, Inc. v. Teva Pharmaceuticals USA, Inc. On February 7, 2018, the Company and Indivior initiated a lawsuit against Teva Pharmaceuticals USA, Inc. (“Teva”) asserting infringement of U.S. Patent No. 9,855,221 ("the '221 patent"). On April 3, 2018, the Company and Indivior initiated a separate lawsuit against Teva asserting infringement of U.S. Patent No. 9,931,305 ("the '305 patent"). On May 29, 2018, the lawsuits regarding the '221 and '305 patents were consolidated with a suit originally initiated by Indivior against Teva asserting infringement of U.S. Patent No. 9,687,454 ("the '454 patent"). The parties agreed that the case would be governed by the final judgment against Dr. Reddy’s, which also involved allegations of infringement of the '221, '305, and '454 patents, which was resolved via a settlement agreement and entry of a Stipulation and Order of Dismissal on June 28,2022. On January 31, 2024, the Court entered a Stipulation and Order of Dismissal, dismissing all claims and counterclaims with prejudice in the lawsuit against Teva. Kentucky Litigation - Humana Humana Inc. v. Indivior Inc, Indivior Solutions Inc., Indivior PLC, Reckitt Benckiser Group plc, Reckitt Benckiser Healthcare (UK) Ltd., and Aquestive Therapeutics, Inc. On August 20, 2021, Humana filed a complaint in state court in Kentucky, alleging conspiracy to violate the RICO Act, fraud under state law, unfair and deceptive trade practices under state law, insurance fraud, and unjust enrichment against the Company relating to Indivior’s launch of Suboxone Sublingual Film in 2010. The Humana action was stayed pending related litigation, and the stay was lifted on October 30, 2023. On February 23, 2024, the Company filed a motion to dismiss the Complaint. Oral argument on the Company's motion to dismiss is currently set for September 9, 2024. No discovery schedule has been set in the action and there is no trial date set in this case. The Company is not able to determine or predict the ultimate outcome of the state court action in Kentucky by Humana, or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. California Litigation Neurelis, Inc. v. Aquestive Therapeutics, Inc. On December 5, 2019, Neurelis Inc. filed a lawsuit against the Company in the Superior Court of California, County of San Diego alleging the following three causes of action: (1) Unfair Competition under California Business and Professional Code § 17200 (“UCL”); (2) Defamation; and (3) Malicious Prosecution. Neurelis filed a First Amended Complaint on December 9, 2019, alleging the same three causes of action. The Company filed a Motion to Strike Neurelis’s Complaint under California’s anti-SLAPP (“strategic lawsuit against public participation”) statute on January 31, 2020, which Neurelis opposed. On August 6, 2020, the Court issued an order granting in part and denying in part the Company’s anti-SLAPP motion. The parties cross-appealed the ruling to the California Court of Appeal. The appeals court held oral argument on the appeal on October 14, 2021, and issued its ruling on November 17, 2021. Under the ruling, the court struck the entirety of the malicious prosecution claim and struck portions of the UCL and defamation claims. On April 12, 2022, Neurelis filed a Second Amended Complaint in response to the Court of Appeal’s decision. The Second Amended Complaint also added a cause of action for Trade Libel. On May 3, 2022, the Company filed a "demurrer" challenge to the sufficiency of the allegations of the Second Amended Complaint. Oral argument on the Company’s motion for attorney fees related to the anti-SLAPP motion and on the Second Amended Complaint and demurer challenge was held on June 17, 2022. The Court entered an order granting the Company’s motion for attorney fees, awarding $156 and ordering Neurelis to pay the fees within 60 days of June 17, 2022. The Court denied the Company’s demurrer and the parties proceeded with discovery on the claims in the Second Amended Complaint. The plaintiff filed a motion to file a third amended complaint, which the Court granted on November 17, 2023. The Third Amended Complaint alleges additional facts but includes the same claims as the Second Amended Complaint. Trial in this matter is scheduled for March 7, 2025. The Company is not able to determine or predict the ultimate outcome of this proceeding or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. Suboxone Product Liability Litigation As of July 29, 2024, the Company was named as a defendant in over 560 product liability lawsuits, along with Indivior and several other named defendants, in which the individual plaintiffs in those cases allege that their use of Suboxone® Sublingual Film, a prescription drug product for opioid use disorder, caused them dental injuries. On February 2, 2024, this litigation became a Multidistrict Litigation (“MDL") consolidated in the United States District Court for the Northern District of Ohio. One case alleging the same allegations as contained in the MDL has been filed in a state court in the State of New Jersey. The parties to the MDL have agreed to a tolling of unfiled claimants in several states, but have not yet agreed to a tolling of the N.J. state case. Indivior has agreed to defend the Company in these litigation matters. No discovery schedule or trial date has been set in the MDL matter. The Company is not able to determine or predict the ultimate outcome of this litigation or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. Neurelis FDA Lawsuit Neurelis v. Califf, et al., U.S. District court for the District of Columbia

v3.24.2.u1

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net (loss) income	$ (2,745)	$ (12,828)	$ (5,792)	$ 8,068	$ (15,573)	$ 2,276

v3.24.2.u1

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.2.u1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	The accompanying interim unaudited condensed financial statements were prepared in conformity with U.S. GAAP and with Article 10 of Regulation S-X for interim financial reporting. In compliance with those rules, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2024 (the “2023 Annual Report on Form 10-K”). As included herein, the Condensed Balance Sheet as of December 31, 2023 is derived from the audited consolidated financial statements as of that date. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results of interim periods have been included. The accompanying financial statements reflect certain reclassifications from previously issued financial statements to conform to the current presentation. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited condensed financial statements. Any reference in these notes to applicable guidance refers to the authoritative U.S. GAAP as found in the ASC and ASU of FASB. As of March 31, 2024, the Company dissolved its subsidiaries and no longer prepares its financial statements on a consolidated basis. The dissolution of the subsidiaries did not have a material impact on the Company’s unaudited condensed financial statements as of June 30, 2024 or the audited consolidated financial statements as of December 31, 2023.
Recent Accounting Pronouncements	As of December 31, 2023, the Company is no longer an “emerging growth company,” but remains a “smaller reporting company”. The Company complies with new or revised accounting standards by the relevant dates on which adoption of such standards is required for smaller reporting companies. From time to time, new accounting pronouncements are issued by the FASB and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recent Accounting Pronouncements Adopted as of June 30, 2024: In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This Accounting Standards Update was issued to address the complexity in accounting for certain financial instruments with characteristics of liabilities and equity. Among other provisions, the amendments in this ASU significantly change the guidance on the issuer’s accounting for convertible instruments and the guidance on the derivative scope exception for contracts in an entity’s own equity such that fewer conversion features will require separate recognition, and fewer freestanding instruments, like warrants, will require liability treatment. More specifically, the ASU reduces the number of models that may be used to account for convertible instruments from five to three, amends diluted EPS calculations for convertible instruments, modifies the requirements for a contract that may be settled in an entity’s own shares to be classified in equity and requires expanded disclosures intended to increase transparency. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This Accounting Standards Update was issued to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for such equity securities. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. Recent Accounting Pronouncements Not Adopted as of June 30, 2024: In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This Accounting Standards Update was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). It further requires disclosure on an annual basis of the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, it requires the following information disclosure: 1. Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU eliminates certain current disclosure requirements. These disclosure requirements will be effective for the Company beginning January 1, 2025, with early adoption of the amendments permitted. The Company is currently evaluating the impact from the adoption of ASU 2023-09 on disclosures to its condensed financial statements.
Revenue Recognition and Performance Obligations	The Company’s revenues include (i) sales of manufactured products pursuant to contracts with commercialization licensees, (ii) license and royalty revenues, and (iii) co-development and research fees generally in the form of milestone payments. The Company recognizes revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, a five-step model is applied that includes (1) identifying the contract with a customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing when, or as, an entity satisfies a performance obligation. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in the current revenue recognition standard. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At contract inception, the Company assesses the goods promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a distinct good. When identifying performance obligations, the Company considers all goods or services promised in a contract regardless of whether explicitly stated in the contract or implied by customary business practice. The Company’s performance obligations consist mainly of transferring goods and services identified in the contracts, purchase orders or invoices. Manufacture and supply revenue – this revenue is derived from products manufactured exclusively for specific customers according to their strictly-defined specifications, subject only to specified quality control inspections. Accordingly, at the point in time when quality control requirements are satisfied, revenue net of related discounts is recorded. License and Royalty Revenue – license revenues are determined based on an assessment of whether the license is distinct from any other performance obligations that may be included in the underlying licensing arrangement. If the customer is able to benefit from the license without provision of any other performance obligations by the Company and the license is thereby viewed as a distinct or functional license, the Company then determines whether the customer has acquired a right to use the license or a right to access the license. For functional licenses that do not require further development or other ongoing activities by the Company, the customer is viewed as acquiring the right to use the license as, and when, transferred and revenues are generally recorded at a point in time, subject to contingencies or constraints. For symbolic licenses providing substantial value only in conjunction with other performance obligations to be provided by the Company, revenues are generally recorded over the term of the license agreement. Such other obligations provided by the Company generally include manufactured products, additional development services or other deliverables that are contracted to be provided during the license term. Payments received in excess of amounts ratably or otherwise earned are deferred and recognized over the term of the license or as contingencies or other performance obligations are met. Royalty revenue is estimated and recognized when sales under supply agreements with commercial licensees are recorded, absent any contractual constraints or collectability uncertainties. Royalties based on sales of licensed products have been recorded in this manner. Co-development and Research Fees – co-development and research fees are earned through performance of specific tasks, activities or completion of stages of development defined within a contractual development or feasibility study agreement with a customer. The nature of these performance obligations, broadly referred to as milestones or deliverables, are usually dependent on the scope and structure of the project as contracted, as well as the complexity of the product and the specific regulatory approval path necessary for that product. Accordingly, the duration of the Company’s research and development projects may range from several months to approximately three years. Although each contractual arrangement is unique, common milestones included in these arrangements include those for the performance of efficacy and other tests, reports of findings, formulation of initial prototypes, production of stability clinical and/or scale-up batches, and stability testing of those batches. Additional milestones may be established and linked to clinical results of the product submission and/or approval of the product by the FDA and the commercial launch of the product. Revenue recognition arising from milestone payments is dependent upon the facts and circumstances surrounding the milestone payments. Milestone payments based on a non-sales metric such as a development-based milestone (e.g., an NDA filing or obtaining regulatory approval) represent variable consideration and are included in the transaction price subject to any constraints. If the milestone payments relate to future development, the timing of recognition depends upon historical experience and the significance a third party has on the outcome. For milestone payments to be received upon the achievement of a sales threshold, the revenue from the milestone payments is recognized at the later of when the actual sales occur or the performance obligation to which the sales relate to has been satisfied. Contract Assets - in certain situations, customer contractual payment terms provide for invoicing in arrears. Accordingly, some, or all performance obligations may be completely satisfied before the customer may be invoiced under such agreements. In these situations, billing occurs after revenue recognition, which results in a contract asset supported by the estimated value of the completed portion of the performance obligation. These contract assets are reflected as a component of other receivables within Trade and other receivables within the Condensed Balance Sheets. As of June 30, 2024, and December 31, 2023, such contract assets were $601 and $1,662, respectively, consisting primarily of products and services provided under specific contracts to customers for which earnings processes have been met prior to shipment of goods or full delivery of completed services, as well as estimated receivables from contracts with 3rd parties. Contract Liabilities - in certain situations, customer contractual payment terms are structured to permit invoicing in advance of delivery of a good or service. In such instances, the customer’s cash payment may be received before satisfaction of some, or any, performance obligations that are specified. In these situations, billing occurs in advance of revenue recognition, which results in contract liabilities. These contract liabilities are reflected as deferred revenue within the Condensed Balance Sheets. As remaining performance obligations are satisfied, an appropriate portion of the deferred revenue balance is credited to earnings. As of June 30, 2024 and December 31, 2023, such contract liabilities were $22,803 and $33,896, respectively. Costs to obtain contracts - in certain situations, the Company may incur incremental costs of obtaining a contract with a customer. These costs, if expected to be recovered, are recognized as an asset and reflected as other assets within the Condensed Balance Sheets. The asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of June 30, 2024 and December 31, 2023, such costs to obtain contracts were $496 and $715, respectively.

v3.24.2.u1

Revenues and Trade Receivables, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue	The Company’s revenues were comprised of the following:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Manufacture and supply revenue $ 8,123  $ 11,636  $ 18,641  $ 21,398  License and royalty revenue 11,220  1,481  12,352  2,400  Co-development and research fees 756  124  1,159  577  Total revenues $ 20,099  $ 13,241  $ 32,152  $ 24,375
Disaggregation of Revenue	The following table provides disaggregated net revenue by geographic area:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 United States $ 9,643  $ 7,313  $ 20,070  $ 15,478  Ex-United States 10,456  5,928  12,082  8,897  Total revenues $ 20,099  $ 13,241  $ 32,152  $ 24,375
Trade and Other Receivables, Net	Trade and other receivables, net consist of the following:   June 30, 2024 December 31, 2023 Trade receivables $ 4,331  $ 5,570  Contract and other receivables 1,668  2,915  Less: allowance for doubtful accounts —  (14) Trade and other receivables, net $ 5,998  $ 8,471
Changes in Allowance for Bad Debt	The following table presents the changes in the allowance for doubtful accounts:   June 30, 2024 December 31, 2023 Allowance for doubtful accounts at beginning of the period $ 14  $ 40  Allowance expense (reduction) (14) (26) Allowance for doubtful accounts at end of the period $ —  $ 14

v3.24.2.u1

Inventories (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventory, Net	The components of Inventory are as follows:   June 30, 2024 December 31, 2023 Raw material $ 3,090  $ 2,118  Packaging material 2,456  3,028  Finished goods 1,420  1,623  Total inventory $ 6,966  $ 6,769

v3.24.2.u1

Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Useful Lives June 30, 2024 December 31, 2023 Machinery 3-15 years $ 20,299  $ 20,248  Furniture and fixtures 3-15 years 769  769  Leasehold improvements (a) 21,386  21,386  Computer, network equipment and software 3-7 years 2,627  2,627  Construction in progress   2,045  2,033      47,126  47,063  Less: accumulated depreciation and amortization   (43,205) (42,884) Total property and equipment, net   $ 3,921  $ 4,179  (a)Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives.

v3.24.2.u1

Right-of-Use Assets and Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Operating Lease Liabilities	The Company’s payments due under its operating leases are as follows: Remainder of 2024 $ 629  2025 1,284  2026 1,318  2027 1,346  2028 and thereafter 5,094  Total future lease payments 9,671  Less: imputed interest (3,978) Total operating lease liabilities $ 5,693

v3.24.2.u1

Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Identifiable Intangible Assets	The following table provides the components of identifiable intangible assets, all of which are finite lived:   June 30, 2024 December 31, 2023 Purchased intangible $ 3,858  $ 3,858  Purchased patent 509  509    4,367  4,367  Less: accumulated amortization (4,367) (3,089) Intangible assets, net $ —  $ 1,278

v3.24.2.u1

Other Non-current Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Other Non-current Assets	The following table provides the components of other non-current assets:   June 30, 2024 December 31, 2023 Royalty receivable $ 3,000  $ 4,000  Other 1,238  1,438  Total other non-current assets $ 4,238  $ 5,438

v3.24.2.u1

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accrued Expenses	Accrued expenses consisted of the following:   June 30, 2024 December 31, 2023 Accrued compensation $ 2,667  $ 4,202  Real estate and personal property taxes 382  337  Accrued distribution expenses and sales returns provision 653  645  Interest payable 1,536  1,013  Other 436  300  Total accrued expenses $ 5,674  $ 6,497

v3.24.2.u1

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Fair Value Measurement Inputs and Valuation Techniques	The following table summarizes the significant unobservable inputs used in the initial fair value measurement of the Royalty Right Agreements: Valuation Methodology Significant Unobservable Input Weighted Average (range, if applicable) Discount Rate 15% Royalty Right Agreements Probability weighted income approach Probability of Success 75% Projected Years of Payments 2025 - 2033
Schedule of Long-Term Debt Instruments	Long-term notes and unamortized debt discount balances are as follows:   June 30, December 31,   2024 2023 Total outstanding notes $ 45,000  $ 45,000  Unamortized discount, including Exit Fee (15,154) (17,665) Notes payable, long-term 29,846  27,335  Finance lease 160  173  Notes payable, net $ 30,006  $ 27,508    June 30, December 31,   2024 2023 Royalty obligations $ 56,926  $ 56,926  Unamortized discount (39,449) (42,165) Royalty obligations, net $ 17,477  $ 14,761
Debt Maturity	Scheduled principal payments on the 13.5% Notes as of June 30, 2024 are as follows: Remainder of 2024 $ —  2025 —  2026 9,540  2027 14,535  2028 20,925  Total $ 45,000

v3.24.2.u1

Sale of Future Revenue (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Royalty Obligation Activity	The following table shows the activity of the liability related to the sale of future revenue: June 30, December 31, 2024 2023 Liability related to the sale of future revenue, net at beginning of the period $ 64,490  $ 65,259  Royalties related to the sale of future revenue (922) (989) Amortization of issuance costs 116  220  Liability related to the sale of future revenue, net at end of the period (includes current portion of $1,000 and $922, respectively) $ 63,684  $ 64,490

v3.24.2.u1

Net (Loss) Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Basic and Diluted Net Loss Per Share	The following table reconciles the basic to diluted weighted average shares outstanding for the three and six months ended June 30, 2024 and 2023. Diluted EPS is adjusted by the effect of dilutive securities, including options and awards under the Company’s equity compensation plans, warrants and ESPP. As a result of the Company’s net loss incurred for the three months ended June 30, 2024 and 2023, and for the six months ended June 30, 2024. all potentially dilutive instruments outstanding would have anti-dilutive effects on per-share calculations. Therefore, basic and diluted net loss per share are the same for the three months ended June 30, 2024 and 2023 and six months ended 2024 as reflected below.   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Numerator: Net (loss) income $ (2,745) $ (5,792) $ (15,573) $ 2,276  Denominator: Weighted-average number of common shares – basic 90,911,626  57,350,902  82,263,168  56,494,805  Effect of stock options (a) —  —  —  46,043  Effect of restricted stock units (b) —  —  —  468,036  Effect of warrants (c) —  —  —  1,910,742  Effect of Employee Stock Purchase Plan (d) —  —  —  18,596  Weighted-average number of common shares – diluted 90,911,626  57,350,902  82,263,168  58,938,222  (Loss) Earnings per share attributable to common stockholders: (Loss) Earnings per common share – basic $ (0.03) $ (0.10) $ (0.19) $ 0.04  (Loss) Earnings per common share – diluted $ (0.03) $ (0.10) $ (0.19) $ 0.04  (a)For the three months ended June 30, 2024 and 2023, outstanding stock options of 6,438,239 and 5,919,522 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding stock options of 6,438,239 and 5,794,522 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. (b)For the three months ended June 30, 2024 and 2023, outstanding restricted stock units of 3,935,201 and 2,477,738 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding restricted stock units of 3,935,201 and 743,438. shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS. (c)For the three months ended June 30, 2024 and 2023, outstanding warrants of 4,624,977 and 6,874,977 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS. For the six months ended June 30, 2024 and 2023, outstanding warrants of 4,624,977 and 1,714,429 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS. (d)For the three and six months ended June 30, 2024 and the three months ended June 30, 2023, the estimated effects of ESPP awards were not material.

v3.24.2.u1

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Share-based Compensation Expense	The Company recognized share-based compensation in its unaudited Condensed Statements of Operations and Comprehensive (Loss) Income during 2024 and 2023 as follows:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Manufacture and supply $ 99  $ 55  $ 169  $ 96  Research and development 308  100  478  172  Selling, general and administrative 1,132  493  2,472  724  Total share-based compensation expenses $ 1,539  $ 648  $ 3,119  $ 992  Share-based compensation from: Restricted stock units $ 1,000  $ 195  $ 1,933  $ 220  Stock options 523  436  1,170  755  Employee stock purchase plan (ESPP) 16  17  16  17  Total share-based compensation expenses $ 1,539  $ 648  $ 3,119  $ 992
Restricted Stock Units Awards	The following tables provide information about the Company’s restricted stock unit and stock option activity during the six month period ended June 30, 2024: Restricted Stock Unit Awards (RSUs) - Service-based: Number of Units Weighted Average Grant Date Fair Value   (in thousands)   Unvested as of December 31, 2023 1,948  $ 0.97  Granted 1,388  $ 5.61  Vested (570) $ 0.89  Forfeited (13) $ 2.65  Unvested as of June 30, 2024 2,753  $ 3.32  Vested and expected to vest as of June 30, 2024 2,534  $ 3.29  As of June 30, 2024, $7,261 of total unrecognized compensation expenses related to unvested service-based restricted stock units are expected to be recognized over a remaining weighted average period of 2.19 years. The service-based restricted stock units granted to employees are subject to a three-year graduated vesting schedule and are not subject to performance-based criteria other than continued employment.
Performance Share Activity	Restricted Stock Unit Awards (RSUs) - Market conditions vesting-based: Number of Units Weighted Average Grant Date Fair Value   (in thousands)   Unvested as of December 31, 2023 1,332  $ 2.40  Vested (150) 2.40  Forfeited —  —  Unvested as of June 30, 2024 1,182  $ 2.40  Vested and expected to vest as of June 30, 2024 1,075  $ 2.40
Stock Option Activity	Stock Option Awards: Number of Options Weighted Average Exercise Price   (in thousands) Outstanding as of December 31, 2023 5,733  $ 5.58  Granted 1,024  4.83  Exercised (231) 2.33  Forfeited/Expired (88) 4.22  Outstanding as of June 30, 2024 6,438  $ 5.59  Vested and expected to vest as of June 30, 2024 6,326  $ 5.62  Exercisable as of June 30, 2024 4,719  $ 6.34  The fair values of stock options granted were estimated using the Black-Scholes pricing model based on the following assumptions: Six Months Ended June 30, Expected dividend yield —% Expected volatility 104% - 107% Expected term (years) 5.5 - 6.1 Risk-free interest rate 4.1% - 4.5%

v3.24.2.u1

Company Overview and Basis of Presentation (Details) $ / shares in Units, $ in Thousands					3 Months Ended	6 Months Ended		12 Months Ended	58 Months Ended
	Apr. 23, 2024 USD ($)	Apr. 22, 2024 USD ($) shares	Apr. 03, 2024 USD ($)	Apr. 12, 2022 USD ($)	Jun. 30, 2024 USD ($) shares	Jun. 30, 2024 USD ($) product shares	Jun. 30, 2023 USD ($) shares	Dec. 31, 2022 USD ($) shares	Jun. 30, 2024 USD ($) shares	Mar. 22, 2024 $ / shares
Subsidiary, Sale of Stock [Line Items]
Number of commercialized products | product						5
Equity distribution agreement
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) | shares							3,060,559		19,857,518
Consideration received on sale of stock							$ 5,090		$ 60,558
Payments for stock issuance costs									$ 3,085
Equity distribution agreement | Maximum
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price	$ 100,000
At-the-market offering
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) | shares					0	4,557,220
Consideration received on sale of stock						$ 11,855
Payments for stock issuance costs						$ 530	$ 312
Amended Equity Distribution Agreement | Maximum
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price			$ 250,000
Lincoln Park agreement
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) | shares						0		1,600,000
Consideration received on sale of stock								$ 1,987
Right to sell common stock, value				$ 40
Agreement term				36 months
Lincoln Park agreement | Maximum
Subsidiary, Sale of Stock [Line Items]
Subsidiary or equity method investee, cumulative percentage ownership limitation after all transactions				9.99%
Lincoln Park Agreement, Commitment Share
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) | shares								236,491
Underwritten Public Offering
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) | shares		16,666,667
Price per share (in dollars per share) | $ / shares										$ 4.50
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) | shares		559,801
Consideration received on sale of stock		$ 72,868
Payments for stock issuance costs					$ 894
Underwriting discounts		$ 4,651

v3.24.2.u1

Risks and Uncertainties (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Concentration Risk [Line Items]
Cash and cash equivalents	$ 89,870	$ 23,872
Accumulated deficit	$ (334,650)	$ (319,077)
13.5% Senior Secured Notes due November 1, 2028
Concentration Risk [Line Items]
Interest rate	13.50%

v3.24.2.u1

Revenues and Trade Receivables, Net - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Concentration Risk [Line Items]
Current and non-current contract assets	$ 601		$ 1,662
Contract liabilities	22,803		33,896
Capitalized contract cost, net	496		715
Contract and other receivables	$ 1,668		$ 2,915
Maximum
Concentration Risk [Line Items]
Research and development, project duration	3 years
Revenue from Contract with Customer Benchmark | Indivior | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	54.00%	74.00%
Revenue from Contract with Customer Benchmark | Hypera | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk		14.00%
Revenue from Contract with Customer Benchmark | Hasico | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	22.00%
Revenue from Contract with Customer Benchmark | MTPA | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	11.00%
Receivables | Indivior | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	58.00%		65.00%
Receivables | Hypera | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	11.00%
Receivables | Zevra | Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk			13.00%

v3.24.2.u1

Revenues and Trade Receivables, Net - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 20,099	$ 13,241	$ 32,152	$ 24,375
Manufacture and supply revenue
Disaggregation of Revenue [Line Items]
Revenues	8,123	11,636	18,641	21,398
License and royalty revenue
Disaggregation of Revenue [Line Items]
Revenues	11,220	1,481	12,352	2,400
Co-development and research fees
Disaggregation of Revenue [Line Items]
Revenues	$ 756	$ 124	$ 1,159	$ 577

v3.24.2.u1

Revenues and Trade Receivables, Net - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	$ 20,099	$ 13,241	$ 32,152	$ 24,375
United States
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	9,643	7,313	20,070	15,478
Ex-United States
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	$ 10,456	$ 5,928	$ 12,082	$ 8,897

v3.24.2.u1

Revenues and Trade Receivables, Net - Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Trade receivables	$ 4,331	$ 5,570
Contract and other receivables	1,668	2,915
Less: allowance for doubtful accounts	0	(14)	$ (40)
Trade and other receivables, net	$ 5,998	$ 8,471

v3.24.2.u1

Revenues and Trade Receivables, Net - Changes in Allowance for Bad Debt (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts at beginning of the period	$ 14	$ 40
Allowance expense (reduction)	(14)	(26)
Allowance for doubtful accounts at end of the period	$ 0	$ 14

v3.24.2.u1

Material Agreements (Details) - USD ($) $ in Thousands							1 Months Ended	2 Months Ended	3 Months Ended			6 Months Ended		17 Months Ended	29 Months Ended	35 Months Ended
	Mar. 27, 2023	Mar. 02, 2023	Oct. 26, 2022	Sep. 26, 2022	Nov. 03, 2020	Apr. 01, 2016	Jun. 30, 2024	Dec. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Feb. 20, 2019	Mar. 31, 2023	Sep. 30, 2023	May 17, 2022	Mar. 03, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Interest income and other income, net									$ 1,395	$ 129		$ 1,724	$ 14,642
Manufacture and supply									4,526	6,617		8,915	11,354
Royalties related to the sale of future revenue									20,099	13,241		32,152	24,375
Chief Executive Officer
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Severance costs monthly payment, duration																	18 months
Severance costs											$ 274
Assertio Holdings, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue			$ 6,000
Proceeds from collaborators			$ 9,000
License and royalty revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue									11,220	1,481		12,352	2,400
Manufacture and supply revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue									8,123	11,636		$ 18,641	21,398
Commercial exploitation agreement with Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
License agreement term												7 years
Automatic renewal period of agreement		1 year										1 year
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred income										$ 5,482			5,482
Revenue from collaborative arrangement, excluding revenue from contract with customer													11,482
Interest income and other income, net													6,000
Manufacture and supply													5,482
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Manufacture and supply revenue | Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue from collaborative arrangement, excluding revenue from contract with customer													3,030
Deferred income, revenue recognized													$ 1,682
Supplemental agreement with Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment														$ 40,750
License agreement with Sunovion Pharmaceuticals, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment						$ 22,000
License agreement with Sunovion Pharmaceuticals, Inc. upfront
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment						5,000
License agreement with Sunovion Pharmaceuticals, Inc milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment						17,000
License agreement with Sunovion Pharmaceuticals, Inc milestones | License and royalty revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue						$ 4,000
MAM Pangolin Royalty , LLC | Monetization Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue					$ 40,000			$ 10,000							$ 50,000	$ 50,000
Proceeds from debt, contingent on additional milestones					75,000
MAM Pangolin Royalty , LLC | Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue					$ 125,000
Haisco Pharmaceutical Group Co., Ltd, upfront payment
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Receivable																		$ 7,000
Sales commissions and fees									134			$ 134
Revenue recognized									7,000			7,000
Atnahs Pharma UK Limited, Amended Agreement | License & Supply Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue	$ 2,000
License & Supply Agreement | Atnahs Pharma UK Limited
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue				$ 3,500
Mitsubishi Tanabe Pharma America, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales commissions and fees									$ 57			$ 57
Revenue recognized							$ 3,317

v3.24.2.u1

Financial Instruments – Fair Value Measurements (Details) - $ / shares	1 Months Ended
	Jun. 30, 2022	Jun. 30, 2024	Nov. 01, 2023	Aug. 01, 2023	Jul. 15, 2019
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)					$ 0.001
Warrants issued (in shares)					2,000,000
Existing Warrants
Class of Warrant or Right [Line Items]
Class of warrant or right, outstanding (in shares)				5,000,000
Warrant exercise price (in dollars per share)				$ 0.96
Warrants issued (in shares)		1,714,429
New Warrants
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)				$ 2.60
Warrants issued (in shares)				2,750,000
Securities purchase agreement
Class of Warrant or Right [Line Items]
Shares of common stock (in shares)	4,000,000
Shares of common stock in connection with securities purchase agreements (in shares)	8,850,000
Senior secured notes due 2025
Class of Warrant or Right [Line Items]
Interest rate					12.50%
Senior secured notes due 2025 | Senior notes
Class of Warrant or Right [Line Items]
Interest rate					12.50%
13.5% Senior Secured Notes due November 1, 2028
Class of Warrant or Right [Line Items]
Interest rate		13.50%
13.5% Senior Secured Notes due November 1, 2028 | Senior notes
Class of Warrant or Right [Line Items]
Interest rate			13.50%

v3.24.2.u1

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw material	$ 3,090	$ 2,118
Packaging material	2,456	3,028
Finished goods	1,420	1,623
Total inventory	$ 6,966	$ 6,769

v3.24.2.u1

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 47,126	$ 47,063
Less: accumulated depreciation and amortization	(43,205)	(42,884)
Total property and equipment, net	3,921	4,179
Machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 20,299	20,248
Machinery | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Machinery | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	15 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 769	769
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	15 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,386	21,386
Computer, network equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,627	2,627
Computer, network equipment and software | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Computer, network equipment and software | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	7 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,045	$ 2,033

v3.24.2.u1

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 165	$ 250	$ 333	$ 536

v3.24.2.u1

Right-of-Use Assets and Lease Obligations - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) lease	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) lease	Jun. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Number of leases | lease	3		3
Operating lease expense	$ 444	$ 452	$ 888	$ 870
Variable lease expense	$ 111	$ 121	$ 226	$ 229
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	3 years 9 months 18 days		3 years 9 months 18 days
Estimated discount rate	14.80%		14.80%
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	9 years 3 months 18 days		9 years 3 months 18 days
Estimated discount rate	15.60%		15.60%

v3.24.2.u1

Right-of-Use Assets and Lease Obligations - Maturities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
Remainder of 2024	$ 629
2025	1,284
2026	1,318
2027	1,346
2028 and thereafter	5,094
Total future lease payments	9,671
Less: imputed interest	(3,978)
Total operating lease liabilities	$ 5,693

v3.24.2.u1

Intangible Assets, Net - Components of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 4,367	$ 4,367
Less: accumulated amortization	(4,367)	(3,089)
Intangible assets, net	0	1,278
Purchased intangible
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	3,858	3,858
Purchased patent
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 509	$ 509

v3.24.2.u1

Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 39	$ 39	$ 78	$ 78
Gain (loss) on disposition of intangible assets			1,500
Impairment of Intangible Assets, Finite-Lived			1,200
Gain on contract termination	$ 300		$ 300	$ 0

v3.24.2.u1

Other Non-current Assets - Summary of Other Non-current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Royalty receivable	$ 3,000	$ 4,000
Other	1,238	1,438
Total other non-current assets	$ 4,238	$ 5,438

v3.24.2.u1

Other Non-current Assets - Narrative (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024 USD ($) payment royalty_payment	Jun. 30, 2023 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2024 USD ($) payment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 payment
Acquired Finite-Lived Intangible Assets [Line Items]
Revenues	$ 20,099	$ 13,241			$ 32,152	$ 24,375
Number of guaranteed royalty payments | royalty_payment	8
License agreement with Sunovion Pharmaceuticals, Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Minimum annual royalty receivable	$ 1,000			$ 1,000	$ 1,000
Number of annual royalty payments receivable | payment	4				4		5
Mitsubishi Tanabe Pharma America, Inc And Haisco For Exarvan
Acquired Finite-Lived Intangible Assets [Line Items]
Sales commissions and fees	$ 191
Royalty
Acquired Finite-Lived Intangible Assets [Line Items]
Revenues					$ (922)	$ (989)
Royalty | License agreement with Sunovion Pharmaceuticals, Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Revenues			$ 8,000	$ 8,000

v3.24.2.u1

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued compensation	$ 2,667	$ 4,202
Real estate and personal property taxes	382	337
Accrued distribution expenses and sales returns provision	653	645
Interest payable	1,536	1,013
Other	436	300
Total accrued expenses	$ 5,674	$ 6,497

v3.24.2.u1

Accrued Expenses - Narrative (Details) - 13.5% Senior Secured Notes due November 1, 2028	Jun. 30, 2024	Nov. 01, 2023
Short-Term Debt [Line Items]
Interest rate	13.50%
Senior notes
Short-Term Debt [Line Items]
Interest rate		13.50%

v3.24.2.u1

Long-Term Debt - Narrative (Details) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 01, 2023 USD ($)	Nov. 03, 2020 USD ($) noteholder shares	Jul. 15, 2019 USD ($) $ / shares shares	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	May 15, 2023 USD ($)	Dec. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	May 15, 2022 quarterlyInstallment	Dec. 31, 2020 USD ($) transaction
Debt Instrument [Line Items]
Warrants issued (in shares) | shares			2,000,000
Warrant exercise price (in dollars per share) | $ / shares			$ 0.001
Net proceeds from issuance of initial notes, warrants and first offer rights			$ 66,082
Total outstanding notes				$ 45,000		$ 45,000
Consent fee payment						0	$ 1,027
Loss on extinguishment of debt				0	$ 0	0	(353)
Amortization of debt issuance costs and discounts						$ 5,342	115
Senior notes
Debt Instrument [Line Items]
Proceeds from issuance of debt		$ 4,000
Payments of loan costs		$ 220
Senior secured notes due 2025
Debt Instrument [Line Items]
Interest rate			12.50%
Principal amount	$ 36,014
Warrants issued to purchase common stock (in shares) | shares		143,000
Redemption percentage of debt under change of control provisions						101.00%
Amortization of debt issuance costs and discounts					4		8
Senior secured notes due 2025 | Put Option
Debt Instrument [Line Items]
Derivative liability, noncurrent				$ 0		$ 0
Gain (loss) on derivative instruments, net, pretax					13		(58)
Senior secured notes due 2025 | Maximum
Debt Instrument [Line Items]
Elective redemption percentage of debt						112.50%
Senior secured notes due 2025 | Minimum
Debt Instrument [Line Items]
Elective redemption percentage of debt			101.56%
Senior secured notes due 2025 | Senior notes
Debt Instrument [Line Items]
Interest rate			12.50%
Principal amount			$ 70,000
Retirement of debt		$ 22,500					5,647
Total outstanding notes		70,000			$ 38,975		38,975					$ 51,500
Proceeds from issuance of debt		$ 4,000
Number of noteholders | noteholder		2
Number of transactions | transaction												2
Premium on early retirement of debt		$ 2,250				$ 2,250
Repurchase price percentage		112.50%
Consent fee payment								$ 2,700
Number of quarterly installments | quarterlyInstallment											4
Fee amount										$ 675
Loss on extinguishment of debt							(353)
Periodic payment, principal							$ 6,878
Senior secured notes due 2025 | Senior notes | Maximum
Debt Instrument [Line Items]
Principal amount			$ 100,000
Percentage of cash proceeds		30.00%
13.5% Senior Secured Notes due November 1, 2028
Debt Instrument [Line Items]
Interest rate				13.50%		13.50%
13.5% Senior Secured Notes due November 1, 2028 | Senior notes
Debt Instrument [Line Items]
Interest rate	13.50%
Principal amount	$ 45,000
Repurchase price percentage	108.50%
Fee amount				$ 2,000		$ 2,000
Proceeds from issuance of long-term debt	$ 4,326
Unamortized discount, including exit fee				15,154		15,154			$ 17,665
13.5% Senior Secured Notes due November 1, 2028 | Senior notes | Redemption Scenario 1
Debt Instrument [Line Items]
Repurchase price percentage	100.00%
Debt instrument, redemption price, percentage of principal amount redeemed	1.00%
Debt instrument, redemption price, basis points above treasury rate	1.00%
13.5% Senior Secured Notes due November 1, 2028 | Senior notes | Redemption Scenario 2
Debt Instrument [Line Items]
Repurchase price percentage	108.50%
Royalty Obligations
Debt Instrument [Line Items]
Royalty obligation, term	8 years
Amortization of debt discount (premium)				1,358		2,716
Royalty Obligations | Maximum
Debt Instrument [Line Items]
Royalty obligation, percent of net sales	2.00%
Royalty Obligations | Minimum
Debt Instrument [Line Items]
Royalty obligation, percent of net sales	1.00%
Royalty Obligations | Senior notes
Debt Instrument [Line Items]
Debt instrument, exit fee	$ 2,000
Fair value	13,856			13,856		13,856
Unamortized discount (premium), net	1,125								13,856
Amortization of debt discount (premium)				1,254		2,511
Unamortized deferred debt issuance cost and deferred debt discounts	20,498
Debt issuance costs, net	3,517
Royalty Obligations | Unsecured Debt
Debt Instrument [Line Items]
Total outstanding notes				17,477		17,477			14,761
Unamortized discount, including exit fee				$ 39,449		$ 39,449			$ 42,165
ABL Facility
Debt Instrument [Line Items]
Line of credit facility, accordion feature, net revenue threshold	100
Line of credit facility, accordion feature, increase limit	$ 10

v3.24.2.u1

Long-Term Debt - Schedule Of Royalty Right Agreements (Details)	Jun. 30, 2024
Measurement Input, Discount Rate
Line of Credit Facility [Line Items]
Measurement input	0.15
Measurement Input, Probability Of Success
Line of Credit Facility [Line Items]
Measurement input	0.75

v3.24.2.u1

Long-Term Debt - Schedule of Term Notes and Unamortized Debt Discount Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Total outstanding notes	$ 45,000
Royalty Obligations | Senior notes
Line of Credit Facility [Line Items]
Total outstanding notes		$ 56,926
Royalty obligations		56,926
Royalty Obligations | Unsecured Debt
Line of Credit Facility [Line Items]
Total outstanding notes	56,926	56,926
Unamortized discount, including Exit Fee	(39,449)	(42,165)
Royalty obligations	56,926	56,926
Unamortized discount	(39,449)	(42,165)
Total outstanding notes	17,477	14,761
13.5% Senior Secured Notes due November 1, 2028 | Senior notes
Line of Credit Facility [Line Items]
Total outstanding notes	45,000	45,000
Unamortized discount, including Exit Fee	(15,154)	(17,665)
Notes payable, long-term	29,846	27,335
Finance lease	160	173
Notes payable, net	30,006	27,508
Royalty obligations	45,000	45,000
Unamortized discount	$ (15,154)	$ (17,665)

v3.24.2.u1

Long-Term Debt - Debt Maturities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Debt Disclosure [Abstract]
Remainder of 2024	$ 0
2025	0
2026	9,540
2027	14,535
2028	20,925
Total	$ 45,000

v3.24.2.u1

Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 02, 2023	Jun. 14, 2023	Nov. 03, 2020	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Aug. 01, 2023	Jun. 30, 2022	Jul. 15, 2019
Class of Warrant or Right [Line Items]
Warrants issued (in shares)											2,000,000
Exercise of warrants (in shares)						0	0
Warrant exercise price (in dollars per share)											$ 0.001
Adjustments to additional paid in capital, stock issued, issuance costs				$ 235	$ 77
Warrants and Rights Outstanding										$ 5,874
Pre-Funded Warrants
Class of Warrant or Right [Line Items]
Warrants issued (in shares)										4,000,000
Common Stock Warrants
Class of Warrant or Right [Line Items]
Warrants issued (in shares)										8,850,000
Warrants issued to purchase common stock (in shares)		3,689,452						8,689,452
Proceeds from warrant exercises		$ 3,542
Adjustments to additional paid in capital, stock issued, issuance costs								$ 35
Existing Warrants
Class of Warrant or Right [Line Items]
Warrants issued (in shares)						1,714,429
Warrant exercise price (in dollars per share)									$ 0.96
Class of warrant or right, outstanding (in shares)									5,000,000
Proceeds from warrant exercises	$ 4,800						$ 8,307
Stock issued during period, conversion of convertible securities (in shares)	5,000,000
New Warrants
Class of Warrant or Right [Line Items]
Warrants issued (in shares)									2,750,000
Warrant exercise price (in dollars per share)									$ 2.60
Warrants and Rights Outstanding									$ 4,671
First Additional Warrant Offering
Class of Warrant or Right [Line Items]
Warrants issued (in shares)						1,714,429
Fair value of warrants											$ 735
Warrant exercise price (in dollars per share)						$ 4.25		$ 5.38
Class of warrant or right, outstanding (in shares)						1,571,429		143,000
Initial Warrant Offering
Class of Warrant or Right [Line Items]
Fair value of warrants											$ 6,800
Warrants, $0.96 Exercise Price
Class of Warrant or Right [Line Items]
Warrants issued (in shares)									160,548
Warrant exercise price (in dollars per share)	$ 0.96
Warrants, $4.25 Exercise Price
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)						$ 4.25
Class of warrant or right, outstanding (in shares)						1,571,429
Warrants, $5.38 Exercise Price
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)								$ 5.38
Class of warrant or right, outstanding (in shares)								143,000
Minimum | Common Stock Warrants
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)										$ 0.96
Maximum | First Additional Warrant Offering
Class of Warrant or Right [Line Items]
Warrants issued (in shares)											2,143,000
Senior secured notes due 2025
Class of Warrant or Right [Line Items]
Interest rate											12.50%
Warrants issued to purchase common stock (in shares)			143,000

v3.24.2.u1

Sale of Future Revenue - Narrative (Details) - USD ($) $ in Thousands		2 Months Ended	3 Months Ended				6 Months Ended		29 Months Ended	35 Months Ended
	Nov. 03, 2020	Dec. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2020	Jun. 30, 2020	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Payments for loan acquisition costs							$ 10	$ 12,543
Revenues			$ 20,099	$ 13,241			32,152	24,375
Royalty
Disaggregation of Revenue [Line Items]
Revenues							(922)	$ (989)
MAM Pangolin Royalty , LLC | Maximum
Disaggregation of Revenue [Line Items]
Proceeds from sale of future revenue	$ 125,000
License agreement with Sunovion Pharmaceuticals, Inc.
Disaggregation of Revenue [Line Items]
Minimum annual royalty receivable			$ 1,000			$ 1,000	$ 1,000
License agreement with Sunovion Pharmaceuticals, Inc. | Royalty
Disaggregation of Revenue [Line Items]
Revenues					$ 8,000	$ 8,000
Monetization Agreement
Disaggregation of Revenue [Line Items]
Payments for loan acquisition costs	$ 2,909
Effective annual interest rate	24.90%
Monetization Agreement | MAM Pangolin Royalty , LLC
Disaggregation of Revenue [Line Items]
Proceeds from sale of future revenue	$ 40,000	$ 10,000							$ 50,000	$ 50,000
Proceeds from debt, contingent on additional milestones	$ 75,000

v3.24.2.u1

Sale of Future Revenue - Royalty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Sale of Future Revenue [Roll Forward]
Liability related to the sale of future revenue, net at beginning of the period			$ 64,490	$ 65,259
Revenues	$ 20,099	$ 13,241	32,152	24,375
Amortization of issuance costs			116	220
Liability related to the sale of future revenue, net at end of the period (includes current portion of $1,000 and $922, respectively)	63,684	$ 64,490	63,684	64,490
Liability related to the sale of future revenue, current	$ 1,000		1,000		$ 922
Royalty
Sale of Future Revenue [Roll Forward]
Revenues			$ (922)	$ (989)

v3.24.2.u1

Net (Loss) Earnings Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net (loss) income	$ (2,745)	$ (12,828)	$ (5,792)	$ 8,068	$ (15,573)	$ 2,276
Weighted-average number of common shares – basic (in shares)	90,911,626		57,350,902		82,263,168	56,494,805
Effect of dilutive stock options and warrants (in shares)	0		0		0	1,910,742
Weighted-average number of common shares - diluted (in shares)	90,911,626		57,350,902		82,263,168	58,938,222
Basic (in dollars per share)	$ (0.03)		$ (0.10)		$ (0.19)	$ 0.04
Diluted (in dollars per share)	$ (0.03)		$ (0.10)		$ (0.19)	$ 0.04
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of share-based payment arrangements (in shares)	0		0		0	46,043
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of share-based payment arrangements (in shares)	0		0		0	468,036
Employee stock purchase plan (ESPP)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of share-based payment arrangements (in shares)	0		0		0	18,596
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,438,239		5,919,522		6,438,239	5,794,522
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	3,935,201		2,477,738		3,935,201	743,438
Warrants on common shares outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	4,624,977		6,874,977		4,624,977	1,714,429

v3.24.2.u1

Net (Loss) Earnings Per Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,438,239	5,919,522	6,438,239	5,794,522
Warrants on common shares outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	4,624,977	6,874,977	4,624,977	1,714,429

v3.24.2.u1

Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	$ 1,539	$ 648	$ 3,119	$ 992
Restricted stock units
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	1,000	195	1,933	220
Stock options
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	523	436	1,170	755
Employee stock purchase plan (ESPP)
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	16	17	16	17
Manufacture and supply
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	99	55	169	96
Research and development
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	308	100	478	172
Selling, general and administrative
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	$ 1,132	$ 493	$ 2,472	$ 724

v3.24.2.u1

Share-Based Compensation - Restricted Stock Unit Awards (Details) - Restricted stock units shares in Thousands	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Units
Unvested, at beginning of period (in shares) | shares	1,948
Granted (in shares) | shares	1,388
Vested (in shares) | shares	(570)
Forfeited (in shares) | shares	13
Unvested, at end of period (in shares) | shares	2,753
Vested and expected to vest at end of period (in shares) | shares	2,534
Weighted Average Grant Date Fair Value
Unvested, at beginning of period (in dollars per share) | $ / shares	$ 0.97
Granted (in dollars per share) | $ / shares	5.61
Vested (in dollars per share) | $ / shares	0.89
Forfeited (in dollars per share) | $ / shares	2.65
Unvested, at end of period (in dollars per share) | $ / shares	3.32
Vested and expected to vest at end of period (in dollars per share) | $ / shares	$ 3.29

v3.24.2.u1

Share-Based Compensation - Performance Based (Details) - Performance Shares - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Number of Units
Unvested (in shares)	1,182	1,332
Vested (in shares)	(150)
Forfeited (in shares)	0
Vested and expected to vest at end of period (in shares)	1,075
Weighted Average Grant Date Fair Value
Unvested (in dollars per share)	$ 2.40	$ 2.40
Vested (in dollars per share)	2.40
Forfeited (in dollars per share)	0
Vested and expected to vest at end of period (in dollars per share)	$ 2.40

v3.24.2.u1

Share-Based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2024	Jun. 30, 2024	Dec. 31, 2023
Number of Options
Exercised (in shares)	(231,400)
Stock options
Number of Options
Outstanding (in shares)		6,438,000	5,733,000
Granted (in shares)		1,024,000
Exercised (in shares)		(231,000)
Forfeited/expired (in shares)		(88,000)
Vested or expected to vest at end of period (in shares)		6,326,000
Exercisable at end of period (in shares)		4,719,000
Weighted Average Exercise Price
Outstanding (in dollars per share)		$ 5.59	$ 5.58
Granted (in dollars per share)		4.83
Exercised (in dollars per share)		2.33
Forfeited/expired (in dollars per share)		4.22
Vested or expected to vest at end of period (in dollars per share)		5.62
Exercisable at end of period (in dollars per share)		$ 6.34

v3.24.2.u1

Share-Based Compensation - Valuation Assumptions for Determination of Fair Value of Options (Details) - Stock options	6 Months Ended
	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%
Expected volatility, minimum	104.00%
Expected volatility, maximum	107.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	5 years 6 months
Risk-free interest rate	4.10%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years 1 month 6 days
Risk-free interest rate	4.50%

v3.24.2.u1

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Inducement equity, common stock options outstanding (in shares)		0
Share price (in dollars per share)			$ 2.60
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs of RSU awards	$ 7,261	$ 7,261
Unrecognized compensation cost, recognition period		2 years 2 months 8 days
Average closing prices period	30 days	30 days
Award vesting period	3 years
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	150.00%
Restricted stock units | Market Condition Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 1.75	$ 1.75
Award vesting rights, percentage	0.00%
Restricted stock units | Market Condition Range Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 1.75	1.75
Award vesting rights, percentage	50.00%
Restricted stock units | Market Condition Range Three | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 1.76	1.76
Award vesting rights, percentage	50.01%
Restricted stock units | Market Condition Range Three | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 2.50	2.50
Award vesting rights, percentage	99.99%
Restricted stock units | Market Condition Range Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 2.50	2.50
Award vesting rights, percentage	100.00%
Restricted stock units | Market Condition Range Five | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 2.51	2.51
Award vesting rights, percentage	100.01%
Restricted stock units | Market Condition Range Five | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 3.25	3.25
Award vesting rights, percentage	149.99%
Restricted stock units | Market Condition Range Six
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 3.25	$ 3.25
Award vesting rights, percentage	150.00%
Restricted stock units | Market Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs of RSU awards	$ 1,658	$ 1,658
Unrecognized compensation cost, recognition period		1 year 10 months 6 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, recognition period		1 year 9 months 3 days
Weighted average grant date fair value (in dollars per share)		$ 3.98
Granted (in dollars per share)		$ 4.83
Unrecognized compensation expense related to non-vested stock options	$ 4,033	$ 4,033

v3.24.2.u1

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	0.00%	(5.20%)	0.00%	11.10%
Income taxes	$ 0	$ 284	$ 0	$ 284
Net (loss)/income before income taxes	$ (2,745)	$ (5,508)	$ (15,573)	$ 2,560

v3.24.2.u1

Contingencies (Details) $ in Thousands	Jul. 29, 2024 plaintiff	May 03, 2022 USD ($)	Dec. 05, 2019 cause
Neurelis, Inc. v. Aquestive Therapeutics, Inc.
Loss Contingencies [Line Items]
Number of cases pending | cause			3
Litigation settlement, amount awarded from other party | $		$ 156
Product Liability Litigation | Subsequent event
Loss Contingencies [Line Items]
Number of plaintiffs | plaintiff	560

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