Discontinued Operations

6 Months Ended

Jun. 30, 2025

2. Discontinued Operations

As discussed in Note 1, we changed our business in 2022 by licensing our products to receive royalties and future sales related milestone payments, after granting an exclusive license to commercialize our IMVEXXY, BIJUVA, and prescription prenatal vitamin products sold under the BocaGreenMD and vitaMedMD brands in the United States and assigning our exclusive license to commercialize ANNOVERA to Mayne Pharma.

This plan represented a strategic shift having a major effect on our operations and financial results. Upon our conversion from a commercial pharmaceutical company to a licensing only company with the consummation of the Mayne Transaction, we classified all direct revenues, costs and expenses related to commercial operations, within income (loss) from discontinued operations, net of tax, in the condensed consolidated statements of operations for all periods presented. We have not allocated any amounts for shared general and administrative operating support expense to discontinued operations.

Additionally, the related assets and liabilities have been reported as assets and liabilities of discontinued operations in our condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

As described in Note 1, the acquisition of net working capital by Mayne Pharma was determined in accordance with the Transaction Agreement and included significant estimates which could change materially for a period of up to two years following the Closing Date. Our estimate of net working capital at closing was determined in accordance with the Transaction Agreement which establishes the process for the determination of final net working capital. Refer to Note 6 for a further discussion of net working capital contingencies.

The following table presents results of discontinued operations (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
General and administrative expenses		(6	)		105		$	11		$	160
Total operating expenses		(6	)		105			11			160
Operating income (loss) from discontinued operations		6			(105	)		(11	)		(160	)
Other income, net		—			65			—			195
Total other income, net		—			65			—			195
Income (loss) from discontinued operations, net of income taxes	$	6		$	(40	)	$	(11	)	$	35

The following table presents the carrying amounts of the classes of assets and liabilities of discontinued operations as of June 30, 2025 and December 31, 2024 (in thousands):

	June 30, 2025		December 31, 2024
Current liabilities of discontinued operations:
Accrued expenses and other current liabilities	$	2,722	$	2,781

TherapeuticsMD, Inc. 10-Q