Assertio (US:ASRT)2025-08-11 20:10PART I — FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Presents Assertio Holdings, Inc.'s unaudited condensed consolidated financial statements for H1 2025, covering balance sheets, comprehensive loss, equity, cash flows, and notes Condensed Consolidated Balance Sheets Total assets decreased to $273.8 million by June 30, 2025, while total liabilities increased, resulting in lower shareholders' equity | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $47,086 | $50,588 | | Total current assets | $210,209 | $202,549 | | Intangible assets, net | $62,006 | $80,471 | | Total assets | $273,780 | $284,732 | | Total current liabilities | $132,529 | $114,688 | | Total liabilities | $180,482 | $163,651 | | Total shareholders' equity | $93,298 | $121,081 | Condensed Consolidated Statements of Comprehensive Loss Net loss significantly increased for H1 2025, primarily due to the Assertio Therapeutics divestiture loss and higher intangible asset amortization | Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $29,222 | $31,126 | $55,712 | $63,574 | | Total costs and expenses | $37,257 | $34,743 | $76,977 | $71,528 | | Loss from operations | $(8,035) | $(3,617) | $(21,265) | $(7,954) | | Loss on Assertio Therapeutics divestiture | $(8,174) | — | $(8,174) | — | | Net loss and comprehensive loss | $(16,352) | $(3,674) | $(29,893) | $(8,184) | | Basic and diluted net loss per share | $(0.17) | $(0.04) | $(0.31) | $(0.09) | Condensed Consolidated Statements of Shareholders' Equity Shareholders' equity decreased significantly to $93.3 million by June 30, 2025, primarily due to a $29.9 million net loss | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Common Stock (Shares) | 95,537 | 96,217 | | Additional Paid-In Capital | $794,196 | $796,306 | | Accumulated Deficit | $(673,124) | $(703,017) | | Total Shareholders' Equity | $121,081 | $93,298 | - Net loss for the six months ended June 30, 2025, was $(29,893) thousand, contributing to the decrease in accumulated deficit and total shareholders' equity14 Condensed Consolidated Statements of Cash Flows Operating cash flow decreased to $6.6 million for H1 2025, while net cash used in investing activities significantly reduced | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $6,553 | $14,895 | | Net cash used in investing activities | $(9,875) | $(43,320) | | Net cash used in financing activities | $(180) | $(281) | | Net decrease in cash and cash equivalents | $(3,502) | $(28,706) | | Cash and cash equivalents at end of period | $47,086 | $44,735 | - The decrease in operating cash flow was primarily due to lower net product sales and higher selling, general and administrative expenses, including increased legal expenses and one-time costs from the Otrexup decommercialization and Therapeutics Transaction173 - Investing activities for H1 2025 included an $8.2 million outflow from the Assertio Therapeutics divestiture and $59.3 million in short-term investment purchases, partially offset by $57.6 million from maturities177 Notes to Condensed Consolidated Financial Statements Detailed notes explain the company's organization, significant transactions, financial statement components, accounting policies, and estimates NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Assertio Holdings, Inc. is a pharmaceutical company that divested Assertio Therapeutics and ceased Otrexup commercialization, with financials prepared under U.S. GAAP - Assertio Holdings, Inc. is a pharmaceutical company focused on oncology, neurology, and pain management, with products like ROLVEDON, Sympazan, INDOCIN, SPRIX, and CAMBIA1920 - The company divested Assertio Therapeutics on May 9, 2025, transferring all equity interests to ATIH Industries, LLC, and ceased commercializing Otrexup starting July 20252024 - A reverse stock split proposal was approved by shareholders on May 7, 2025, allowing the Board to effect a split between 1-for-2 and 1-for-15, though it has not yet been effected23 NOTE 2. DIVESTITURES AND STRATEGIC TRANSACTIONS Assertio divested Assertio Therapeutics for an $8.2 million loss and ceased Otrexup commercialization, incurring $3.8 million in related expenses - Assertio Therapeutics was divested on May 9, 2025, transferring equity interests to ATIH Industries, LLC, resulting in a net loss of $8.2 million for the three and six months ended June 30, 2025, and removing Assertio Holdings from opioid-related litigation242526 - The company ceased commercialization of Otrexup in July 2025, incurring $3.8 million in expenses for the three and six months ended June 30, 2025, mainly from inventory write-offs ($2.5 million in Cost of sales) and an accrual for minimum purchase obligations ($1.3 million in SG&A)2728 NOTE 3. REVENUE Total revenues decreased to $55.7 million for H1 2025, mainly due to lower INDOCIN sales, partially offset by ROLVEDON and Sympazan, and a $5.4 million returns reserve adjustment | Product Sales, net (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | ROLVEDON | $16,128 | $15,144 | $29,249 | $29,622 | | INDOCIN products | $3,033 | $6,913 | $8,578 | $15,596 | | Sympazan | $3,244 | $2,668 | $5,423 | $5,285 | | SPRIX | $1,976 | $2,147 | $3,565 | $3,584 | | Other products | $4,441 | $3,823 | $8,003 | $8,470 | | Total product sales, net | $28,822 | $30,695 | $54,818 | $62,557 | | Royalty revenue | $400 | $