0001493152-23-016414 | 10-Q | XBRL Viewer

INVESTMENT IN SURFACE OPHTHALMICS, INC. - RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2023

Investment In Surface Ophthalmics Inc. - Related Party Transactions

The unaudited condensed results of operations information of Surface is summarized below:

SUMMARY OF CONDENSED INCOME STATEMENT

	2023			2022
	For the Three Months Ended March 31,
	2023			2022
Revenues, net	$	-		$	-
Loss from operations	$	(1,587,000	)	$	(1,996,000	)
Net loss	$	(1,524,000	)	$	1,996,000

SUMMARY OF CONDENSED BALANCE SHEET

The unaudited condensed balance sheet information of Surface is summarized below:

SUMMARY OF CONDENSED BALANCE SHEET

	At March 31,		At December 31,
	2023		2022
Current assets	$	13,350,000	$	15,350,000
Non-current assets		902,000		652,000
Total assets	$	14,252,000	$	16,002,000

Total liabilities	$	995,000	$	1,586,000
Total preferred stock and stockholders’ deficit		13,257,000		14,416,000
Total liabilities and stockholders’ equity	$	14,252,000	$	16,002,000

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Narrative) - Financing Agreement [Member]	3 Months Ended
	Mar. 31, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt instrument interest rate, during period	4.13%
Accrued monthly payments	$ 114,000

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total Harrow Health, Inc. Stockholders' Equity [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2021	$ 27,000	$ 106,666,000	$ (95,407,000)	$ 11,286,000	$ (355,000)	$ 10,931,000
Beginning balance, shares at Dec. 31, 2021	26,902,763
Exercise of employee stock-based options		4,000		4,000		4,000
Exercise of employee stock-based options, shares	89,986
Vesting of RSUs	$ 1,000	(1,000)
Vesting of RSUs, shares	135,000
Shares withheld related to net share settlement of equity awards	$ (1,000)	(776,000)		(777,000)		(777,000)
Shares withheld related to net share settlement of equity awards, shares	(96,622)
Stock-based compensation expense		2,016,000		2,016,000		2,016,000
Net loss			(2,438,000)	(2,438,000)		(2,438,000)
Ending balance, value at Mar. 31, 2022	$ 27,000	107,909,000	(97,845,000)	10,091,000	(355,000)	9,736,000
Ending balance, shares at Mar. 31, 2022	27,031,127
Beginning balance, value at Dec. 31, 2022	$ 30,000	137,058,000	(109,493,000)	27,595,000	(355,000)	27,240,000
Beginning balance, shares at Dec. 31, 2022	29,901,530
Exercise of employee stock-based options		148,000		148,000		148,000
Exercise of employee stock-based options, shares	97,542
Vesting of RSUs
Vesting of RSUs, shares	111,000
Shares withheld related to net share settlement of equity awards		(850,000)		(850,000)		(850,000)
Shares withheld related to net share settlement of equity awards, shares	(53,702)
Stock-based compensation expense		1,633,000		1,633,000		1,633,000
Net loss			(6,643,000)	(6,643,000)		(6,643,000)
Ending balance, value at Mar. 31, 2023	$ 30,000	$ 137,989,000	$ (116,136,000)	$ 21,883,000	$ (355,000)	$ 21,528,000
Ending balance, shares at Mar. 31, 2023	30,056,370

SCHEDULE OF INVESTMENT (Details)	3 Months Ended
SCHEDULE OF INVESTMENT (Details)	Mar. 31, 2023 USD ($)
Melt Pharmaceuticals, Inc. [Member]
Schedule of Investments [Line Items]
Cost Basis	$ 19,310,000
Share of Equity Method Losses	(19,310,000)
Paid in Kind Interest	3,001,000
In Substance Capital Contributions	(3,001,000)
Net carrying value
Common Stock [Member] \| Melt Pharmaceuticals, Inc. [Member]
Schedule of Investments [Line Items]
Cost Basis	5,810,000
Share of Equity Method Losses	(5,810,000)
Paid in Kind Interest
Common Stock [Member] \| Surface Ophthalmics Inc [Member]
Schedule of Investments [Line Items]
Cost Basis	5,320,000
Share of Equity Method Losses	(5,320,000)
Net carrying value
Loan [Member] \| Melt Pharmaceuticals, Inc. [Member]
Schedule of Investments [Line Items]
Cost Basis	13,500,000
Share of Equity Method Losses	(13,500,000)
Paid in Kind Interest	3,001,000
In Substance Capital Contributions	(3,001,000)
Net carrying value

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 16. COMMITMENTS AND CONTINGENCIES

Legal

General and Other

In the ordinary course of business, the Company is involved in various legal proceedings, government investigations and other matters that are complex in nature and have outcomes that are difficult to predict. The Company describes legal proceedings and other matters that are/were significant or that it believes could become significant in this footnote.

The Company records accruals for loss contingencies to the extent that it concludes it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of a liability that has been accrued previously.

The Company’s legal proceedings involve various aspects of its business and a variety of claims, some of which present novel factual allegations and/or unique legal theories. Typically, a number of the matters pending against the Company are at early stages of the legal process, which in complex proceedings of the sort the Company face often extend for several years. While it is not possible to accurately predict or determine the eventual outcomes of matters that have not concluded, an adverse determination in one or more of matter (whether discussed in this footnote or not) currently pending may have a material adverse effect on the Company’s condensed consolidated results of operations, financial position or cash flows.

Ocular Science, Inc. et. al

In July 2021, ImprimisRx, LLC, a subsidiary of the Company, filed a lawsuit against Ocular Science, Inc. and OSRX, Inc. (together, “OSRX”) in the U.S. District Court for the Southern District of California, asserting claims for copyright infringement, trademark infringement, unfair competition and false advertising (Lanham Act). ImprimisRx is seeking damages from OSRX. Since July 2021, the complaint has been amended and OSRX added counterclaims alleging ImprimisRx, LLC is violating the Lanham Act with false advertising. Both parties are seeking damages from the other. Discovery is currently ongoing and trial is set to take place in the fourth quarter of 2023.

Product and Professional Liability

Product and professional liability litigation represents an inherent risk to all firms in the pharmaceutical and pharmacy industry. We utilize traditional third-party insurance policies with regard to our product and professional liability claims. Such insurance coverage at any given time reflects current market conditions, including cost and availability, when the policy is written.

Indemnities

In addition to the indemnification provisions contained in the Company’s governing documents, the Company generally enters into separate indemnification agreements with each of the Company’s directors and officers. These agreements require the Company, among other things, to indemnify the director or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with any action, suit or proceeding arising out of the individual’s status or service as the Company’s director or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by the Company. The Company indemnifies Oaktree for certain claims and losses associated with the Oaktree Loan. The Company also indemnifies its lessors in connection with its facility leases for certain claims arising from the use of the facilities. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying condensed consolidated balance sheets.

Klarity License Agreement – Related Party

The Company entered into a license agreement in April 2017, as amended in April 2018 (the “Klarity License Agreement”), with Richard L. Lindstrom, M.D., a member of its Board of Directors. Pursuant to the terms of the Klarity License Agreement, the Company licensed certain intellectual property and related rights from Dr. Lindstrom to develop, formulate, make, sell, and sub-license the topical ophthalmic solution Klarity designed to protect and rehabilitate the ocular surface (the “Klarity Product”).

Under the terms of the Klarity License Agreement, the Company is required to make royalty payments to Dr. Lindstrom ranging from 3% to 6% of net sales, dependent upon the final formulation of the Klarity Product sold. In addition, the Company is required to make certain milestone payments to Dr. Lindstrom including: (i) an initial payment of $50,000 upon execution of the Klarity License Agreement, (ii) a second payment of $50,000 following the first $50,000 in net sales of the Klarity Product; and (iii) a final payment of $50,000 following the first $100,000 in net sales of the Klarity Product. All of the above referenced milestone payments were payable at the Company’s election in cash or shares of the Company’s restricted common stock. Payments totaling $71,000 and $30,000 were made during the three months ended March 31, 2023 and 2022, respectively. Royalty expenses were $75,000 and $71,000 during the three months ended March 31, 2023 and 2022, respectively, and were included in accounts payable to Dr. Lindstrom.

Injectable Asset Purchase Agreement – Related Party

In December 2019, the Company entered into an asset purchase agreement (the “Lindstrom APA”) with Dr. Lindstrom, a member of its Board of Directors. Pursuant to the terms of the Lindstrom APA, the Company acquired certain intellectual property and related rights from Dr. Lindstrom to develop, formulate, make, sell, and sub-license an ophthalmic injectable product (the “Lindstrom Product”).

Under the terms of the Lindstrom APA, the Company is required to make royalty payments to Dr. Lindstrom ranging from 2% to 3% of net sales, dependent upon the final formulation and patent protection of the Lindstrom Product sold. In addition, the Company is required to make certain milestone payments to Dr. Lindstrom including an initial payment of $33,000 upon execution of the Lindstrom APA. Dr. Lindstrom was paid $9,000 and $8,000 in cash during the three months ended March 31, 2023 and 2022, respectively. The Company incurred $8,000 and $7,000 for royalty expenses related to the Lindstrom APA during the three months ended March 31, 2023 and 2022, respectively.

Other Asset Purchase, License and Related Agreements

The Company has acquired and sourced intellectual property rights related to certain proprietary innovations from certain inventors and related parties (the “Inventors”) through multiple asset purchase agreements, license agreements, strategic agreements and commission agreements. In general, these agreements provide that the Inventors will cooperate with the Company in obtaining patent protection for the acquired intellectual property and that the Company will use commercially reasonable efforts to research, develop and commercialize a product based on the acquired intellectual property. In addition, the Company has acquired a right of first refusal on additional intellectual property and drug development opportunities presented by these Inventors.

In consideration for the acquisition of the intellectual property rights, the Company is obligated to make payments to the Inventors based on the completion of certain milestones, generally consisting of: (i) a payment payable within 30 days after the issuance of the first patent in the United States arising from the acquired intellectual property (if any); (ii) a payment payable within 30 days after the Company files the first investigational new drug application (“IND”) with the U.S. Food and Drug Administration (“FDA”) for the first product arising from the acquired intellectual property (if any); (iii) for certain of the Inventors, a payment payable within 30 days after the Company files the first new drug application with the FDA for the first product arising from the acquired intellectual property (if any); and (4) certain royalty payments based on the net receipts received by the Company in connection with the sale or licensing of any product based on the acquired intellectual property (if any), after deducting (among other things) the Company’s development costs associated with such product. If, following five years after the date of the applicable asset purchase agreement, the Company either (a) for certain of the Inventors, has not filed an IND or, for the remaining Inventors, has not initiated a study where data is derived, or (b) has failed to generate royalty payments to the Inventors for any product based on the acquired intellectual property, the Inventors may terminate the applicable asset purchase agreement and request that the Company re-assign the acquired technology to the Inventors. During the three months ended March 31, 2023 and 2022, $293,000 and $213,000 were incurred under these agreements as royalty expenses, respectively.

Sintetica Agreement

In July 2021, the Company entered into a License and Supply Agreement (the “Sintetica Agreement”) with Sintetica S.A. (“Sintetica”), pursuant to which Sintetica granted the Company the exclusive license and marketing rights to its patented ophthalmic drug candidate (“IHEEZO”) in the U.S. and Canada.

Pursuant to the Sintetica Agreement, the Company agreed to pay Sintetica a per unit transfer price to supply IHEEZO, along with a per unit royalty for units sold. The Company is required to pay Sintetica up to $18,000,000 in one-time milestone payments including a $5,000,000 payment (the “Upfront Payment”) due within 30 days of signing the Sintetica Agreement and the balance of payments due upon achievement of certain regulatory and commercial milestones. Under the terms of the Sintetica Agreement, Sintetica was responsible for regulatory filings for IHEEZO in the U.S. As of March 31, 2023 and December 31, 2022, the Company had accrued $5,000,000 under the Sintetica Agreement related to a milestone payment, which was capitalized as an intangible asset.

Subject to certain limitations, the Sintetica Agreement has a ten-year term, and allows for a ten-year extension if certain sales thresholds are met.

Wakamoto Agreement

In August 2021, the Company entered into a License Agreement and a Basic Sale and Purchase Agreement (together, the “Wakamoto Agreements”) with Wakamoto Pharmaceutical Co., Ltd. (“Wakamoto”), pursuant to which Wakamoto granted the Company the exclusive license and marketing rights to its ophthalmic drug candidate (“MAQ-100”) in the U.S. and Canada.

Pursuant to the Wakamoto Agreements, Wakamoto will supply MAQ-100 to the Company, and the Company will pay Wakamoto a per unit transfer price to supply MAQ-100. In addition, the Company is required to pay Wakamoto various one-time milestone payments totaling up to $2,000,000 upon the achievement of certain regulatory milestones and up to $6,200,000 upon the achievement of certain commercial milestones. Under the terms of the Agreements, the Company will be responsible for regulatory filings and fees for MAQ-100 in the U.S. and Canada. Through March 31, 2023, no amounts have been paid or accrued under the Wakamoto agreement.

Subject to certain limitations, the term of the Agreements is for five years from the date of the FDA’s market approval of MAQ-100 and allows for a five-year extension if certain unit sales thresholds are met.

Eyepoint Commercial Alliance Agreement - Terminated

In August 2020, the Company, through its wholly owned subsidiary ImprimisRx, LLC, entered into a Commercial Alliance Agreement (the “Dexycu Agreement”) with Eyepoint Pharmaceuticals, Inc. (“Eyepoint”), pursuant to which Eyepoint granted the Company the non-exclusive right to co-promote DEXYCU^® (dexamethasone intraocular suspension) 9% for the treatment of post-operative inflammation following ocular surgery in the United States. Pursuant to the Dexycu Agreement, Eyepoint pays the Company a fee calculated based on the quarterly sales of DEXYCU in excess of predefined volumes to specific customers of the Company in the U.S. Under the terms of the Dexycu Agreement, the Company agreed to use commercially reasonable efforts to promote and market DEXYCU in the U.S.

Following the preliminary Hospital Outpatient Prospective Payment System (HOPPS) rule proposed by the Centers for Medicare & Medicaid Services (CMS) in July of 2022, which did not contain an extension of the pass-through payment period for Dexycu beyond December 31, 2022, the Company entered into a Mutual Termination Agreement (the “Termination Agreement”) with Eyepoint on October 7, 2022, pursuant to which Eyepoint and the Company agreed (a) that the Company will continue to support the sale of Dexycu through the fourth quarter of 2022, consistent with the Company’s level of effort during the January through June 2022 period, (b) to decrease the required minimum quarterly sales levels based on Dexycu unit demand for the fourth quarter of 2022, and (c) to terminate the Dexycu Agreement, along with ancillary letter agreements, effective January 1, 2023.

During the three months ended March 31, 2022, the Company recorded $1,320,000 in commission revenues related to the Dexycu Agreement.

Sales and Marketing Agreements

The Company has entered various sales and marketing agreements with certain organizations to provide exclusive and non-exclusive sales and marketing representation services to Harrow in select geographies in the U.S. in connection with the Company’s ophthalmic pharmaceutical compounded formulations or related products.

Under the terms of the sales and marketing agreements, the Company is generally required to make commission payments equal to 10% to 14% of net sales for products above and beyond the initial existing sales amounts. In addition, the Company is required to make periodic milestone payments to certain organizations in shares of the Company’s restricted common stock if net sales in the assigned territory reach certain future levels by the end of their terms. Commission expenses of $130,000 and $1,047,000 were incurred under these agreements during the three months ended March 31, 2023 and 2022, respectively.

SEGMENTS AND CONCENTRATIONS (Details Narrative)	3 Months Ended
SEGMENTS AND CONCENTRATIONS (Details Narrative)	Mar. 31, 2023	Mar. 31, 2022
Cost of Goods and Service, Product and Service Benchmark [Member] \| Supplier Concentration Risk [Member] \| Three Main Suppliers [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	90.00%	74.00%
Two Product Concentration Risk [Member] \| Revenue Benchmark [Member] \| Product Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	36.00%	32.00%

SEGMENTS AND CONCENTRATIONS

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENTS AND CONCENTRATIONS

NOTE 17. SEGMENTS AND CONCENTRATIONS

The Company operates its business on the basis of a single reportable segment, which is the business of discovery, development, and commercialization of innovative ophthalmic therapies. The Company’s chief operating decision-maker is the Chief Executive Officer, who evaluates the Company as a single operating segment.

The Company has two products that each comprised more than 10% of total revenues during the three months ended March 31, 2023 and 2022. These products collectively accounted for 36% and 32% of revenues during the three months ended March 31, 2023 and 2022, respectively.

The Company sells its products and compounded formulations to a large number of customers. There were no customers who comprised more than 10% of the Company’s total product sales during the three months ended March 31, 2023 and 2022.

The Company receives its active pharmaceutical ingredients from three main suppliers. These suppliers collectively accounted for 90% and 74% of active pharmaceutical ingredient purchases during the three months ended March 31, 2023 and 2022, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
Prepaid insurance	$	527,000	$	858,000
Prepaid computer software licenses and related expenses		1,072,000		1,165,000
Due from Melt Pharmaceuticals		198,000		139,000
Other prepaid expenses		1,689,000		1,331,000
Deposits and other current assets		118,000		118,000
Total prepaid expenses and other current assets	$	3,604,000	$	3,611,000

SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE (Details)	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 8,777,000
2024	11,673,000
2025	11,652,000
2026	11,652,000
2027	11,652,000
Thereafter	96,319,000
Intangible assets	$ 151,725,000

SCHEDULE OF STOCK BASED COMPENSATION GRANTED TO EMPLOYEES DIRECTORS CONSULTANTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total	$ 1,633,000	$ 2,016,000
Employees [Member] \| Selling, General and Administrative Expenses [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total	1,328,000	1,676,000
Employees [Member] \| Research and Development Expense [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total	163,000	186,000
Director [Member] \| Selling, General and Administrative Expenses [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total	125,000	100,000
Consultant [Member] \| Research and Development Expense [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total	$ 17,000	$ 54,000

SCHEDULE OF STOCK OPTION PLAN ACTIVITY (Details) - Stock Option Plan [Member]	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, outstanding, beginning balance \| shares	3,027,701
Weighted average exercise price, outstanding, beginning balance \| $ / shares	$ 5.90
Number of shares, options granted \| shares	28,500
Weighted average exercise price, options granted \| $ / shares	$ 17.40
Number of shares, options exercised \| shares	(123,063)
Weighted average exercise price, options exercised \| $ / shares	$ 5.54
Number of shares, options cancelled/forfeited \| shares	(42,112)
Weighted average exercise price, options cancelled/forfeited \| $ / shares	$ 5.61
Number of shares, outstanding, ending balance \| shares	2,891,026
Weighted average exercise price, outstanding, ending balance \| $ / shares	$ 6.03
Weighted average. remaining contractual life, options outstanding	4 years 3 months 18 days
Aggregate intrinsic value, options outstanding \| $	$ 43,730,000
Number of shares, options exercisable \| shares	2,589,182
Weighted average exercise price, options exercisable \| $ / shares	$ 5.73
Weighted average. remaining contractual life, options exercisable	3 years 9 months 7 days
Aggregate intrinsic value, options exercisable \| $	$ 39,941,000
Number of shares, options vested and expected to vest \| shares	2,848,713
Weighted average exercise price, options vested and expected to vest \| $ / shares	$ 5.99
Weighted average. remaining contractual life, options vested and expected to vest	4 years 2 months 23 days
Aggregate intrinsic value, options vested and expected to vest \| $	$ 43,219,000

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at March 31, 2023 and December 31, 2022 consisted of the following:

	2023			2022
	March 31,			December 31,
	2023			2022
Accounts payable	$	6,237,000		$	6,440,000
Accrued insurance premium		237,000			575,000
Accrued IHEEZO milestone payment (see Note 16)		5,000,000			5,000,000
Accrued RPC transition payments (see Note 4)		307,000			453,000
Accrued litigation settlements		49,000			49,000
Accrued exit fee for note payable (see Note 13)		2,275,000			-
Accrued interest		1,964,000			1,254,000
Total accounts payable and accrued expenses	$	16,069,000		$	13,771,000
Less: Current portion		(13,794,000	)		(13,771,000	)
Non-current total accrued expenses	$	2,275,000		$	-

INTANGIBLE ASSETS AND GOODWILL (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF INTANGIBLE ASSETS

The Company’s intangible assets at March 31, 2023 consisted of the following:

SCHEDULE OF INTANGIBLE ASSETS

	Amortization Periods (in years)		Cost		Accumulated Amortization			Impairment		Net Carrying Value
Patents		7-19	$	981,000	$	(183,000	)	$	-	$	798,000
Licenses		20		100,000		(25,000	)		-		75,000
Trademarks		Indefinite		267,000		-			-		267,000
Acquired NDAs		10-15		154,193,000		(3,533,000	)		-		150,660,000
Customer relationships		3-15		596,000		(475,000	)		-		121,000
Trade name		5		75,000		(5,000	)		-		70,000
Non-competition clause		3-4		50,000		(50,000	)		-		-
State pharmacy licenses		25		8,000		(7,000	)		-		1,000
			$	156,270,000	$	(4,278,000	)	$	-	$	151,992,000

SCHEDULE OF AMORTIZATION EXPENSES FOR INTANGIBLE ASSETS

Amortization expense for intangible assets for the three months ended March 31, 2023 and 2022 was as follows:

	2023		2022
	For the
	Three Months Ended
	March 31,
	2023		2022
Patents	$	22,000	$	22,000
Licenses		2,000		8,000
Acquired NDAs		2,170,000		341,000
Customer relationships		13,000		33,000
Amortization of intangible assets	$	2,207,000	$	404,000

SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE

Estimated future amortization expense for the Company’s intangible assets at March 31, 2023 is as follows:


Remainder of 2023	$	8,777,000
2024		11,673,000
2025		11,652,000
2026		11,652,000
2027		11,652,000
Thereafter		96,319,000
Intangible assets	$	151,725,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2023

SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE OF CREDIT LOSS

Balance at January 1, 2023	$	73,000
Change in expected credit losses		20,000
Write-offs, net of recoveries		(11,000	)
Balance at March 31, 2023	$	82,000

SCHEDULE OF ESTIMATED FAIR VALUE

The following table presents the estimated fair values and the carrying values:

SCHEDULE OF ESTIMATED FAIR VALUE

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
2026 Notes	$	72,628,000	$	73,590,000	$	72,436,000	$	71,550,000
2027 Notes	$	36,900,000	$	40,250,000	$	31,738,000	$	35,112,000
Oaktree Loan	$	59,322,000	$	65,000,000	$	-	$	-

SCHEDULE OF BASIC AND DILUTED EARNINGS PER COMMON SHARE

The following table shows the computation of basic and diluted net loss per share of common stock for the three months ended March 31, 2023 and 2022:

	2023			2022
	For the Three Months Ended
	March 31,
	2023			2022

Numerator – net loss	$	(6,643,000	)	$	(2,438,000	)
Denominator – weighted average
number of shares outstanding, basic and diluted		30,289,730			27,226,819
Net loss per share, basic and diluted	$	(0.22	)	$	(0.09	)

Melt Pharmaceuticals, Inc. [Member]

SCHEDULE OF INVESTMENT

The following table summarizes the Company’s investments in Melt as of March 31, 2023:

SCHEDULE OF INVESTMENT

	Cost		Share of Equity			Paid-in-Kind		In-substance			Net
	Basis		Method Losses			Interest		Capital Contributions			Carrying value
Common stock	$	5,810,000	$	(5,810,000	)	$	-	$			$	-
Loan		13,500,000		(13,500,000	)		3,001,000		(3,001,000	)		-
	$	19,310,000	$	(19,310,000	)	$	3,001,000	$	(3,001,000	)	$	-

Surface Ophthalmics Inc [Member]

SCHEDULE OF INVESTMENT

The following table summarizes the Company’s investment in Surface as of March 31, 2023:

SCHEDULE OF INVESTMENT

	Cost		Share of Equity			Net
	Basis		Method Losses			Carrying value
Common stock	$	5,320,000	$	(5,320,000	)	$	-

SCHEDULE OF DISAGGREGATED REVENUE (Details) - USD ($)	3 Months Ended
SCHEDULE OF DISAGGREGATED REVENUE (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 26,103,000	$ 22,120,000
Product Sales Net [Member]
Disaggregation of Revenue [Line Items]
Total revenues	20,453,000	20,340,000
Commissions Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues		1,320,000
Transfer of Profit [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 5,650,000	$ 460,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORIES

	March 31, 2023		December 31, 2022
Raw materials	$	5,023,000	$	3,707,000
Work in progress		36,000		38,000
Finished goods		4,034,000		2,796,000
Total inventories	$	9,093,000	$	6,541,000

SCHEDULE OF ESTIMATED FAIR VALUE (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022
Platform Operator, Crypto-Asset [Line Items]
Carrying value	$ 180,250,000
Fair Value, Inputs, Level 1 [Member] \| 2026 Notes [Member]
Platform Operator, Crypto-Asset [Line Items]
Carrying value	72,628,000	$ 72,436,000
Fair value	73,590,000	71,550,000
Fair Value, Inputs, Level 1 [Member] \| 2027 Notes [Member]
Platform Operator, Crypto-Asset [Line Items]
Carrying value	36,900,000	31,738,000
Fair value	40,250,000	35,112,000
Fair Value, Inputs, Level 1 [Member] \| Oaktree Loan [Member]
Platform Operator, Crypto-Asset [Line Items]
Carrying value	59,322,000
Fair value	$ 65,000,000

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

SCHEDULE OF STOCK OPTION PLAN ACTIVITY

A summary of stock option activity under the Plans for the three months ended March 31, 2023 is as follows:

SCHEDULE OF STOCK OPTION PLAN ACTIVITY

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding – January 1, 2022		3,027,701		$	5.90
Options granted		28,500		$	17.40
Options exercised		(123,063	)	$	5.54
Options cancelled/forfeited		(42,112	)	$	5.61
Options outstanding – March 31, 2023		2,891,026		$	6.03		4.30	$	43,730,000
Options exercisable		2,589,182		$	5.73		3.77	$	39,941,000
Options vested and expected to vest		2,848,713		$	5.99		4.23	$	43,219,000

SCHEDULE OF FAIR VALUE ASSUMPTIONS

The table below illustrates the fair value per share determined using the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to employees:

SCHEDULE OF FAIR VALUE ASSUMPTIONS

	2023
Weighted-average fair value of options granted	$	10.58
Expected terms (in years)		5.50-6.11
Expected volatility		69-70	%
Risk-free interest rate		3.64-3.76	%
Dividend yield		-

SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE

The following table summarizes information about stock options outstanding and exercisable at March 31, 2023:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$1.47 - $1.73		298,112		4.71	$	1.72		298,112	$	1.72
$2.23 - $2.60		309,068		3.61	$	2.26		309,068	$	2.26
$3.95		310,000		2.93	$	3.95		310,000	$	3.95
$4.08 - $6.30		409,850		5.66	$	5.99		398,194	$	6.00
$6.75 - $7.30		402,000		7.43	$	7.18		279,500	$	7.29
$7.37 - $7.79		260,323		5.13	$	7.53		166,760	$	7.50
$7.87		600,000		2.33	$	7.87		600,000	$	7.87
$7.89 - $12.38		274,173		2.57	$	9.12		227,548	$	8.84
$15.17		7,500		9.84	$	15.17		-	$	-
$18.35		20,000		9.82	$	18.35		-	$	-
$1.47 - $18.35		2,891,026		4.30	$	6.03		2,589,182	$	5.73

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY

A summary of the Company’s RSU activity (including performance stock units) and related information for the three months ended March 31, 2023 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2023		2,061,719		$	6.88
RSUs granted		-		$	-
RSUs vested		(127,405	)	$	7.34
RSUs cancelled/forfeited		(75,000	)	$	5.83
RSUs unvested - March 31, 2023		1,859,314		$	6.82

SCHEDULE OF STOCK BASED COMPENSATION GRANTED TO EMPLOYEES DIRECTORS CONSULTANTS

The Company recorded stock-based compensation related to equity instruments granted to employees, directors and consultants as follows:

	2023		2022
	For the
	Three Months Ended March 31,
	2023		2022
Employees - selling, general and administrative	$	1,328,000	$	1,676,000
Employees - R&D		163,000		186,000
Directors - selling, general and administrative		125,000		100,000
Consultants - R&D		17,000		54,000
Total	$	1,633,000	$	2,016,000

DEBT

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

DEBT

NOTE 13. DEBT

Oaktree Loan

In March 2023, the Company entered into a Credit and Guaranty Agreement (the “Oaktree Loan”) with Oaktree Fund Administration, LLC, as administrative agent for the lenders (together, “Oaktree”), providing for a senior secured term loan facility to the Company with a principal amount of up to $100,000,000. Upon entering into the Oaktree Loan, the Company drew a principal amount of $65,000,000 (“Tranche A”) from the Oaktree Loan and used the net proceeds to repay all amounts owed by the Company pursuant to the Loan and Security Agreement the Company previously entered into with B. Riley Commercial Capital, LLC on December 14, 2022 (the “B. Riley Loan”) – see subheading B. Riley Loan and Security Agreement – Paid in Full within this footnote. The additional principal loan amount of up to $35,000,000 available under the Oaktree Loan (“Tranche B”) will be made available to the Company upon the commercialization of TRIESENCE (see Note 4). If Tranche B is not drawn by the Company on or before March 27, 2024, the additional principal loan amount available under the Oaktree Loan is reduced to $30,000,000.

The Oaktree Loan is secured by nearly all of the assets, including intellectual property, of the Company and its material subsidiaries. The Oaktree Loan which has a maturity date of January 19, 2026, and bears interest at a rate equal to the Secured Overnight Financing Rate (SOFR) plus 6.5% per annum (totaling 11.398% at March 31, 2023). Interest is payable quarterly in arrears on March 31, June 30, September 30, and December 31, of each year. From the proceeds, the Company paid fees and offering expenses of $915,000, and the Oaktree Loan was issued at an original issue discount of $2,500,000. The Oaktree Loan also requires the Company to pay an exit fee equal to 3.50% of the aggregate principal amount owed upon any payment or prepayment in full or in part, on or after the maturity date, and accordingly, the Company accrued $2,275,000 related to the exit fee. The original issue discount, fees and expenses (including the exit fee) totaling $5,690,000 have been recorded as a debt discount, which is being amortized over the term of the Oaktree Loan using the effective interest rate method. The Oaktree Loan requires interest-only payments through the maturity date.

The Oaktree Loan contains customary guarantees and covenants, including financial covenants related to minimum liquidity and minimum net revenues. As of the end of the fiscal quarter ending December 31, 2024, if the Company’s Total Leverage Ratio (as defined in the Oaktree Loan) is greater than or equal to five times, but less than seven times, the Company will be required to issue to Oaktree warrants to purchase 375,000 shares of the Company’s common stock, and if the Total Leverage Ratio is greater than or equal to seven times, the Company will be required to issue to Oaktree warrants to purchase an additional 375,000 shares of the Company’s common stock (equaling 750,000 shares in aggregate). If the Total Leverage Ratio as of the end of the fiscal quarter ending December 31, 2024 is less than five times, no warrants will be issued to Oaktree. Based on current projections, the Company does not expect to issue any warrants related to the Oaktree Loan.

Interest expense related to the Oaktree Loan totaled $95,000 for the three months ended March 31, 2023, and included the amortization of debt issuance costs and discount of $12,000.

HROWM - 11.875% Senior Notes Due 2027

In December 2022 and in January 2023, the Company closed an offering of $35,000,000 and $5,250,000, respectively, aggregate principal amount of 11.875% senior notes due in December 2027 (the “2027 Notes”). The 2027 Notes were sold to investors at a par value of $25.00 per 2027 Note, and the offering resulted in net proceeds to the Company of approximately $36,699,000 after deducting underwriting discounts and commissions and expenses of $3,551,000.

The 2027 Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of the Company’s other existing and future senior unsecured and unsubordinated indebtedness. The 2027 Notes are effectively subordinated in right of payment to all of the Company’s existing and future secured indebtedness and structurally subordinated to all existing and future indebtedness of the Company’s subsidiaries, including trade payables. The 2027 Notes bear interest at the rate of 11.875% per annum. Interest on the 2027 Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on January 31, 2023. The 2027 Notes will mature on December 31, 2027.

At any time prior to December 31, 2024, the Company may, at its option, redeem the 2027 Notes, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus a make-whole amount, if any, plus accrued and unpaid interest to, but excluding, the date of redemption. The Company may redeem the 2027 Notes for cash in whole or in part at any time at its option (i) on or after December 31, 2024 and prior to December 31, 2025, at a price equal to $25.50 per note, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after December 31, 2025 and prior to December 31, 2026, at a price equal to $25.25 per note, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iii) on or after December 31, 2026 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Company is required to redeem the 2027 Notes, for cash, in whole but not in part, at the price of $25.50 per note, plus accrued and unpaid interest to, but excluding, the date of redemption, upon occurrence of certain events including (i) the occurrence of a Material Change, as defined in the Second Supplemental Indenture. The 2027 Notes trade on the Nasdaq Stock Market LLC under the symbol “HROWM”.

Interest expense related to the 2027 Notes totaled $1,395,000 for the three months ended March 31, 2023, and included amortization of debt issuance costs and debt discount of $200,000.

Our Chief Executive Officer, Mark L. Baum, Chief Financial Officer, Andrew R. Boll along with directors Dr. Richard Lindstrom and R. Lawrence Van Horn, in aggregate, own $950,000 in principal amount of the 2027 Notes.

HROWL - 8.625% Senior Notes Due 2026

In April 2021, the Company closed an offering of $50,000,000 aggregate principal amount of 8.625% senior notes due April 2026, and in May 2021 issued an additional $5,000,000 of such notes pursuant to the full exercise of the underwriters’ option to purchase additional notes (collectively, the “April Notes”). The April Notes were sold to investors at a par value of $25.00 per April Note and the offering resulted in net proceeds to the Company of approximately $51,909,000 after deducting underwriting discounts and commissions and expenses of $3,091,000. In June 2021, in a further issuance of the April Notes, the Company sold an additional $20,000,000 aggregate principal amount of such notes (the “June Notes,” and together with the April Notes, the “2026 Notes”), at a price of $25.75 per June Note, with interest of $278,000 on the June Notes being accrued from April 20, 2021 as of the date of issuance. The June offering resulted in net proceeds to the Company of approximately $19,164,000 after deducting underwriting discounts and commissions and expenses of $1,158,000 and a premium on note issuance of $322,000. The June Notes are treated as a single series with the April Notes under the indenture governing the April Notes, dated as of April 20, 2021, and have the same terms as the April Notes (other than the initial offering price and issue date). The 2026 Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of our other existing and future senior unsecured and unsubordinated indebtedness. The 2026 Notes are effectively subordinated in right of payment to all of the Company’s existing and future secured indebtedness and structurally subordinated to all existing and future indebtedness of the Company’s subsidiaries, including trade payables. The 2026 Notes bear interest at a rate of 8.625% per annum. Interest on the 2026 Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on July 31, 2021. The 2026 Notes will mature on April 30, 2026. The issuance costs were recorded as a debt discount and are being amortized as interest expense, net of the amortization of the premium on note issuance, over the term of the 2026 Notes using the effective interest rate method.

Prior to February 1, 2026, the Company may, at its option, redeem the 2026 Notes, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus a make-whole amount, if any, plus accrued and unpaid interest to, but excluding, the date of redemption. The Company may redeem the 2026 Notes for cash in whole or in part at any time at our option on or after February 1, 2026 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Notes. The 2026 Notes trade on the Nasdaq Stock Market LLC under the symbol “HROWL”.

Interest expense related to the 2026 Notes totaled $1,810,000 and $1,810,000 for the three months ended March 31, 2023 and 2022, respectively, and included amortization of debt issuance costs and debt discount of $193,000 and $193,000, respectively.

B. Riley Loan and Security Agreement – Paid in Full

On December 14, 2022 (the “Effective Date”), the Company entered into a Loan and Security Agreement (the “BR Loan”) with B. Riley Commercial Capital, LLC, as Administrative Agent for the Lenders. The BR Loan provided for a loan facility of up to $100,000,000 to the Company with a maturity date of December 14, 2025, at an interest rate of 10.875% per annum.

The BR Loan was secured by an intellectual property security agreement entered into in connection with the BR Loan, and by all assets of the Company and its material subsidiaries. The outstanding balance of the BR Loan was due in full on the maturity date. The BR Loan provided for voluntary prepayment subject to no prepayment fee if no loan had been funded or the prepayment or repayment occured (other than as a result of acceleration of the BR Loan) on or prior to the date that was 90 days following the Effective Date and up to 3.00% of the amount of the loan based on other payment dates.

In January 2023, $59,750,000 of principal amount was funded pursuant to the BR Loan simultaneously with the consummation of the Fab 5 Acquisition. In March 2023, the Company repaid all amounts owed under the BR Loan, including accrued interest of $1,200,000, from proceeds received in connection with the Oaktree Loan, and no exit or prepayment fees were paid as a result of the payoff of the BR Loan.

Interest expense related to the BR Loan totaled $1,565,000 for the three months ended March 31, 2023, and included amortization of debt issuance costs and debt discount of $356,000. The Company recorded $5,465,000 related to the write off of the remaining unamortized debt issuance costs and debt discount in connection with the early extinguishment of debt associated with the BR Loan.

At March 31, 2023, future minimum payments under the Company’s debt are as follows:

	Amount
Remainder of 2023	$	14,145,000
2024		18,695,000
2025		18,695,000
2026		147,325,000
2027		45,030,000
Total minimum payments		243,890,000
Less: amount representing interest payments		(63,640,000	)
Notes payable, gross		180,250,000
Less: unamortized discount, net of premium		(11,400,000	)
Notes payable, net of unamortized discount	$	168,850,000

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 225,000	$ 376,000

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 19,248,000	$ 96,270,000
Investment in Eton Pharmaceuticals	7,631,000	5,589,000
Accounts receivable, net	12,111,000	6,249,000
Inventories	9,093,000	6,541,000
Prepaid expenses and other current assets	3,604,000	3,611,000
Total current assets	51,687,000	118,260,000
Property, plant and equipment, net	3,586,000	3,486,000
Capitalized software costs, net	2,277,000	2,112,000
Deferred financing costs		1,950,000
Deferred tax asset	288,000
Operating lease right-of-use assets, net	7,336,000	7,513,000
Intangible assets, net	151,992,000	23,725,000
Goodwill	332,000	332,000
TOTAL ASSETS	217,498,000	157,378,000
Current liabilities
Accounts payable and accrued expenses	13,794,000	13,771,000
Accrued payroll and related liabilities	3,103,000	4,025,000
Deferred revenue and customer deposits	67,000	113,000
Current portion of operating lease obligations	744,000	723,000
Total current liabilities	17,708,000	18,632,000
Operating lease obligations, net of current portion	7,137,000	7,332,000
Accrued expenses, net of current portion	2,275,000
Notes payable, net of unamortized debt discount	168,850,000	104,174,000
TOTAL LIABILITIES	195,970,000	130,138,000
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value, 50,000,000 shares authorized, 30,056,370 and 29,901,530 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	30,000	30,000
Additional paid-in capital	137,989,000	137,058,000
Accumulated deficit	(116,136,000)	(109,493,000)
TOTAL HARROW HEALTH STOCKHOLDERS’ EQUITY	21,883,000	27,595,000
Noncontrolling interests	(355,000)	(355,000)
TOTAL STOCKHOLDERS’ EQUITY	21,528,000	27,240,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 217,498,000	$ 157,378,000

INVESTMENT IN, AND NOTE RECEIVABLE FROM MELT PHARMACEUTICALS, INC. - RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

SCHEDULE OF CONDENSED INCOME STATEMENT

The unaudited condensed results of operations information of Melt is summarized below:

SCHEDULE OF CONDENSED INCOME STATEMENT

	2023			2022
	For the Three Months Ended March 31,
	2023			2022
Revenues, net	$	-		$	-
Loss from operations	$	(1,858,000	)	$	(3,337,000	)
Net loss	$	(1,858,000	)	$	(3,337,000	)

SCHEDULE OF CONDENSED BALANCE SHEET

The unaudited condensed balance sheet information of Melt is summarized below:

SCHEDULE OF CONDENSED BALANCE SHEET

	At March 31,			At December 31,
	2023			2022
Current assets	$	133,000		$	655,000
Non-current assets		133,000			107,000
Total assets	$	266,000		$	762,000

Total liabilities	$	20,273,000		$	19,056,000
Total preferred stock and stockholders’ deficit		(20,007,000	)		(18,294,000	)
Total liabilities and stockholders’ equity	$	266,000		$	762,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (6,643,000)	$ (2,438,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization of property, plant and equipment	292,000	419,000
Amortization of intangible assets	2,207,000	404,000
Amortization of operating lease right-of-use assets	177,000	124,000
Provision for bad debt expense	20,000	10,000
Amortization of debt issuance costs and debt discount	761,000	193,000
Investment gain from investment in Eton	(2,042,000)	(139,000)
Equity in losses of unconsolidated entities		2,886,000
Loss on extinguishment of debt	5,465,000
Stock-based compensation	1,633,000	2,016,000
Deferred taxes	(288,000)
Changes in assets and liabilities:
Accounts receivable	(5,882,000)	(1,535,000)
Inventories	(2,552,000)	(179,000)
Prepaid expenses and other current assets	7,000	(29,000)
Accounts payable and accrued expenses	(212,000)	369,000
Accrued payroll and related liabilities	(1,111,000)	(1,141,000)
Deferred revenue and customer deposits	(46,000)	7,000
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(8,214,000)	967,000
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in patent and trademark assets		(6,000)
Purchase of product NDAs and patents	(130,474,000)
Purchases of property, plant and equipment	(496,000)	(404,000)
NET CASH USED IN INVESTING ACTIVITIES	(130,970,000)	(410,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on finance lease obligations		(3,000)
Net proceeds from 11.875% notes payable, net of costs	4,961,000
Net proceeds from Oaktree loan, net of costs	61,585,000
Payment of taxes upon vesting of RSUs and exercise of stock options	(661,000)	(777,000)
Proceeds from exercise of stock options	148,000	4,000
Net proceeds from B Riley senior secured note, net of costs	55,879,000
Repayment of B. Riley senior secured note	(59,750,000)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	62,162,000	(776,000)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(77,022,000)	(219,000)
CASH AND CASH EQUIVALENTS, beginning of period	96,270,000	42,167,000
CASH AND CASH EQUIVALENTS, end of period	19,248,000	41,948,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	3,371,000	1,617,000
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property, plant and equipment included in accounts payable and accrued expenses	61,000
Right-of-use assets obtained in exchange for new operating lease obligations		1,036,000
Accrual of exit fee related to Oaktree Loan	2,275,000
Reclassification of derferred financing costs	1,950,000
Income taxes owed for exercise of stock options	$ 189,000

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Cost	$ 156,270,000
Accumulated amortization	(4,278,000)
Impairment
Net Carrying value	151,992,000	$ 23,725,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	981,000
Accumulated amortization	(183,000)
Impairment
Net Carrying value	$ 798,000
Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	20 years
Cost	$ 100,000
Accumulated amortization	(25,000)
Impairment
Net Carrying value	75,000
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	267,000
Accumulated amortization
Impairment
Net Carrying value	$ 267,000
Useful life, description	Indefinite
New Drug Applications [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	$ 154,193,000
Accumulated amortization	(3,533,000)
Impairment
Net Carrying value	150,660,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	596,000
Accumulated amortization	(475,000)
Impairment
Net Carrying value	$ 121,000
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years
Cost	$ 75,000
Accumulated amortization	(5,000)
Impairment
Net Carrying value	70,000
Non-Competition Clause [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	50,000
Accumulated amortization	(50,000)
Impairment
Net Carrying value
State Pharmacy Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	25 years
Cost	$ 8,000
Accumulated amortization	(7,000)
Impairment
Net Carrying value	$ 1,000
Minimum [Member] \| Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	7 years
Minimum [Member] \| New Drug Applications [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Minimum [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	3 years
Minimum [Member] \| Non-Competition Clause [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	3 years
Maximum [Member] \| Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	19 years
Maximum [Member] \| New Drug Applications [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	15 years
Maximum [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	15 years
Maximum [Member] \| Non-Competition Clause [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	4 years

RECENT PRODUCT ACQUISITIONS, LICENSES AND DIVESTITURES

3 Months Ended

Mar. 31, 2023

Recent Product Acquisitions Licenses And Divestitures

RECENT PRODUCT ACQUISITIONS, LICENSES AND DIVESTITURES

NOTE 4. RECENT PRODUCT ACQUISITIONS, LICENSES AND DIVESTITURES

Acquisition of ILEVRO, NEVANAC, VIGAMOX, MAXIDEX, and TRIESENCE

In December 2022, the Company entered into an Asset Purchase Agreement (the “Fab 5 APA”) with Novartis Technology, LLC and Novartis Innovative Therapies AG (together, “Novartis”), pursuant to which the Company agreed to purchase from Novartis the exclusive commercial rights to assets associated with the following ophthalmic products (collectively the “Fab 5 Products”) in the U.S. (the “Fab 5 Acquisition”): ILEVRO, NEVANAC, VIGAMOX, MAXIDEX, and TRIESENCE.

Under the terms of the Fab 5 APA, the Company made a one-time payment of $130,000,000 at closing in January 2023, with up to another $45,000,000 due in a milestone payment related to the timing of the commercial availability of TRIESENCE. Pursuant to the Fab 5 APA and various ancillary agreements, immediately following the closing and subject to certain conditions and prior to the transfer of the Fab 5 Products new drug applications (the “NDAs”) to the Company, Novartis will continue to sell the Fab 5 Products on the Company’s behalf and transfer the net profit from the sale of the Fab 5 Products to the Company. Novartis has agreed to supply certain Fab 5 Products to the Company for a period of time after the NDAs are transferred and to assist with technology transfer of the Fab 5 Products manufacturing to other third-party manufacturers, if needed.

The assets acquired in the Fab 5 Acquisition are identifiable intangible asset groups in similar asset classes and all directly related to the five product NDAs acquired. The developed technology is within one major intangible asset class. No workforce/employees were included in the Fab 5 Acquisition and the Company is required to utilize its own business inputs/processes to transfer and commercialize the Fab 5 Products and NDAs. As a result, the Company recognized this transaction as an asset acquisition.

The Company incurred $558,000 in costs associated with the Fab 5 Acquisition, including the acquisition costs and the payment of $130,000,000 at closing, the total purchase price of the Fab 5 Acquisition was $130,558,000. At the time of the Fab 5 Acquisition and as of March 31, 2023, the contingent consideration due related to the commercial availability of TRIESENCE was not considered probable and reasonably estimable, therefore no amount was included in the purchase price of the Fab 5 Acquisition. At the time the contingent consideration due related to the commercial availability of TRIESENCE becomes probable and reasonably estimable, the additional consideration, if any, paid will be allocated to all of the assets on a pro rata basis based on their initial estimated fair values as a percent of the total purchase price. The Company does not consider any amounts related to TRIESENCE to be in-process research and development (IPR&D) as considered within the scope of ASC 730, Research and Development.

Divestiture of Non-Ophthalmic Assets

In October 2022, wholly owned subsidiaries of the Company (“Imprimis”) entered into an Asset Purchase Agreement (the “RPC Agreement”) with Innovation Compounding Pharmacy, LLC (the “Buyer”). Under the terms of the RPC Agreement, Imprimis agreed to sell substantially all of its assets associated with its non-ophthalmology related compounding product line, including but not limited to, certain intellectual property rights, customer lists, databases, and formulations (the “RPC Assets”). The Buyer agreed to make offers of employment to six of the Company’s employees that were responsible for the sales activities associated with the RPC Assets. Under the terms of the RPC Agreement, the Buyer paid Imprimis an aggregate cash amount of $6,000,000 in October 2022. In addition, the Buyer is obligated to pay up to $4,500,000 to Imprimis based on mutually agreed upon revenue milestones during the calendar year 2023 (the “Contingent Amount”). During the year ended December 31, 2022, no amount related to the Contingent Amount was recognized by the Company. The Company will recognize a gain related to the Contingent Amount if/when the contingency (in this case, revenue thresholds for 2023) become likely and reasonably estimated.

In connection with the RPC Agreement, Imprimis entered into a separate transition services agreement with the Buyer related to providing on going services associated with the RPC Assets, such as procuring and dispensing prescription orders, providing accounting and billing services and collecting accounts receivable. The Company expects Imprimis to provide transition services to the Buyer for up to six to nine months following the effective date of the RPC Agreement. The Company collected and will continue to collect cash on behalf of the Buyer for revenue generated by sales of RPC Assets from October 2022 through the transition period and the Company is obligated to transfer cash generated by such sales to the Buyer. The Company’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 reflected $226,000 and $579,000, respectively, of cash collected on behalf of the Buyer and a receivable within accounts receivable of $116,000 and $128,000, respectively, for cash to be collected on behalf of the Buyer for sales of RPC Assets sold through March 31, 2023 and December 31, 2022, respectively.

The amounts due from the Buyer for reimbursement of services performed under the transition services agreement was $162,000 and $254,000 as of March 31, 2023 and December 31, 2022, respectively. Such amounts were netted against the amounts collected on behalf of the Buyer and was unpaid within accrued expenses on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022. The combined total of $307,000 and $453,000 was recorded within accrued expenses on the condensed consolidated balances sheets as of March 31, 2023 and December 31, 2022, respectively, and represents a payable to the Buyer. The Company recorded income from the transition services agreement of $124,000 which is presented in other income on the consolidated statement of operations for the three months ended March 31, 2023. During the three months ended March 31, 2023, the Company recorded a loss on the sale of assets of $94,800 related to remaining unusable inventory.

SCHEDULE OF FUTURE MINIMUM PAYMENT UNDER NOTES PAYABLES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Remainder of 2023	$ 14,145,000
2024	18,695,000
2025	18,695,000
2026	147,325,000
2027	45,030,000
Total minimum payments	243,890,000
Less: amount representing interest payments	(63,640,000)
Notes payable, gross	180,250,000
Less: unamortized discount, net of premium	(11,400,000)
Notes payable, net of unamortized discount	$ 168,850,000	$ 104,174,000

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Computer hardware	$ 1,060,000	$ 979,000
Furniture and equipment	922,000	860,000
Lab and pharmacy equipment	4,335,000	4,259,000
Leasehold improvements	6,555,000	6,449,000
Property, plant and equipment, gross	12,872,000	12,547,000
Accumulated depreciation	(9,286,000)	(9,061,000)
Property, plant and equipment, net	$ 3,586,000	$ 3,486,000

SCHEDULE OF INVENTORIES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 5,023,000	$ 3,707,000
Work in progress	36,000	38,000
Finished goods	4,034,000	2,796,000
Total inventories	$ 9,093,000	$ 6,541,000

SUBSEQUENT EVENTS (Tables)

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

SCHEDULE OF SHARE BASED COMPENSATION

Tranche	Number of Shares	Target Share Price
Tranche 1	223,988	$25
Tranche 2	335,981	$35
Tranche 3	447,975	$45
Tranche 4	559,969	$50

SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total gross capitalized software for internal-use	$ 1,574,000	$ 1,572,000
Accumulated amortization	(860,000)	(793,000)
Capitalized internal-use software in process	1,563,000	1,333,000
Total finite lived intangible assets net	2,277,000	2,112,000
Capitalized Internal Use Software [Member]
Finite-Lived Intangible Assets [Line Items]
Total gross capitalized software for internal-use	1,415,000	1,413,000
Third Party Software License [Member]
Finite-Lived Intangible Assets [Line Items]
Total gross capitalized software for internal-use	$ 159,000	$ 159,000

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	May 10, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-35814
Entity Registrant Name	Harrow Health, Inc.
Entity Central Index Key	0001360214
Entity Tax Identification Number	45-0567010
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	102 Woodmont Blvd.
Entity Address, Address Line Two	Suite 610
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37205
City Area Code	(615)
Local Phone Number	733-4730
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		30,121,997
Common Stock 0.001 Par Value Per Share [Member]
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	HROW
Security Exchange Name	NASDAQ
Sec8.625 Senior Notes Due 2026 [Member]
Title of 12(b) Security	8.625% Senior Notes due 2026
Trading Symbol	HROWL
Security Exchange Name	NASDAQ
Sec11.875 Senior Notes Due 2027 [Member]
Title of 12(b) Security	11.875% Senior Notes due 2027
Trading Symbol	HROWM
Security Exchange Name	NASDAQ

RECENT PRODUCT ACQUISITIONS, LICENSES AND DIVESTITURES (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended
	Jan. 31, 2023	Oct. 30, 2022	Mar. 31, 2023	Dec. 31, 2022
Accounts receivable			$ 12,111,000	$ 6,249,000
Asset Purchase Agreement [Member]
Proceeds from related party		$ 6,000,000
Milestones receivable based on agreed revenues		$ 4,500,000
RPC Agreement [Member]
Cash			226,000	579,000
RPC Agreement [Member] \| Cash [Member]
Accounts receivable			116,000	128,000
Transition Services Agreement [Member]
Due from reimbursement of services amount			162,000	254,000
Accrued expenses			307,000	$ 453,000
Other income			124,000
Loss on sale of assets			$ 94,800
One Time Payment [Member]
Milestone payment	$ 130,000,000
Costs incurred	558,000
Purchase price acquisition	130,558,000
One Time Payment [Member] \| Maximum [Member]
Milestone payment	$ 45,000,000

CAPITALIZED SOFTWARE DEVELOPMENT COSTS

3 Months Ended

Mar. 31, 2023

Capitalized Software Development Costs

CAPITALIZED SOFTWARE DEVELOPMENT COSTS

NOTE 10. CAPITALIZED SOFTWARE DEVELOPMENT COSTS

Capitalized software development costs at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023			December 31, 2022
Capitalized internal-use software development costs	$	1,415,000		$	1,413,000
Acquired third-party software license for internal-use		159,000			159,000
Total gross capitalized software for internal-use		1,574,000			1,572,000
Accumulated amortization		(860,000	)		(793,000	)
Capitalized internal-use software in process		1,563,000			1,333,000
	$	2,277,000		$	2,112,000

The Company recorded amortization expense of $67,000 and $43,000 related to capitalized software development costs during the three months ended March 31, 2023 and 2022, respectively.

SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	$ 1.47
Range of Exercise Prices, maximum	$ 18.35
Number of Options Outstanding \| shares	2,891,026
Weighted Average Remaining Contractual Life in Years	4 years 3 months 18 days
Weighted Average Exercise Price	$ 6.03
Number Exercisable \| shares	2,589,182
Weighted Average Exercisable Exercise Price	$ 5.73
Range One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	1.47
Range of Exercise Prices, maximum	$ 1.73
Number of Options Outstanding \| shares	298,112
Weighted Average Remaining Contractual Life in Years	4 years 8 months 15 days
Weighted Average Exercise Price	$ 1.72
Number Exercisable \| shares	298,112
Weighted Average Exercisable Exercise Price	$ 1.72
Range Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	2.23
Range of Exercise Prices, maximum	$ 2.60
Number of Options Outstanding \| shares	309,068
Weighted Average Remaining Contractual Life in Years	3 years 7 months 9 days
Weighted Average Exercise Price	$ 2.26
Number Exercisable \| shares	309,068
Weighted Average Exercisable Exercise Price	$ 2.26
Range Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, maximum	$ 3.95
Number of Options Outstanding \| shares	310,000
Weighted Average Remaining Contractual Life in Years	2 years 11 months 4 days
Weighted Average Exercise Price	$ 3.95
Number Exercisable \| shares	310,000
Weighted Average Exercisable Exercise Price	$ 3.95
Range Four [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	4.08
Range of Exercise Prices, maximum	$ 6.30
Number of Options Outstanding \| shares	409,850
Weighted Average Remaining Contractual Life in Years	5 years 7 months 28 days
Weighted Average Exercise Price	$ 5.99
Number Exercisable \| shares	398,194
Weighted Average Exercisable Exercise Price	$ 6.00
Range Five [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	6.75
Range of Exercise Prices, maximum	$ 7.30
Number of Options Outstanding \| shares	402,000
Weighted Average Remaining Contractual Life in Years	7 years 5 months 4 days
Weighted Average Exercise Price	$ 7.18
Number Exercisable \| shares	279,500
Weighted Average Exercisable Exercise Price	$ 7.29
Range Six [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	7.37
Range of Exercise Prices, maximum	$ 7.79
Number of Options Outstanding \| shares	260,323
Weighted Average Remaining Contractual Life in Years	5 years 1 month 17 days
Weighted Average Exercise Price	$ 7.53
Number Exercisable \| shares	166,760
Weighted Average Exercisable Exercise Price	$ 7.50
Range Seven [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, maximum	$ 7.87
Number of Options Outstanding \| shares	600,000
Weighted Average Remaining Contractual Life in Years	2 years 3 months 29 days
Weighted Average Exercise Price	$ 7.87
Number Exercisable \| shares	600,000
Weighted Average Exercisable Exercise Price	$ 7.87
Range Eight [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	7.89
Range of Exercise Prices, maximum	$ 12.38
Number of Options Outstanding \| shares	274,173
Weighted Average Remaining Contractual Life in Years	2 years 6 months 25 days
Weighted Average Exercise Price	$ 9.12
Number Exercisable \| shares	227,548
Weighted Average Exercisable Exercise Price	$ 8.84
Range Nine [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, maximum	$ 15.17
Number of Options Outstanding \| shares	7,500
Weighted Average Remaining Contractual Life in Years	9 years 10 months 2 days
Weighted Average Exercise Price	$ 15.17
Number Exercisable \| shares
Weighted Average Exercisable Exercise Price
Range Ten [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, maximum	$ 18.35
Number of Options Outstanding \| shares	20,000
Weighted Average Remaining Contractual Life in Years	9 years 9 months 25 days
Weighted Average Exercise Price	$ 18.35
Number Exercisable \| shares
Weighted Average Exercisable Exercise Price

SUBSEQUENT EVENTS (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended
SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Apr. 30, 2023	Apr. 30, 2023	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Subsequent Event [Line Items]
Common stock withheld for payroll tax withholdings, value				$ (850,000)	$ (777,000)
Common Stock [Member]
Subsequent Event [Line Items]
Common stock withheld for payroll tax withholdings, shares				53,702	96,622
Common stock withheld for payroll tax withholdings, value					$ (1,000)
Subsequent Event [Member] \| Minimum [Member]
Subsequent Event [Line Items]
Target share price	$ 25	$ 25
Subsequent Event [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Target share price	$ 50	$ 50
Subsequent Event [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Cashless exercise of warrants to purchase to common stock	3,260	3,260
Subsequent Event [Member] \| Common Stock [Member] \| Minimum [Member]
Subsequent Event [Line Items]
Warrants exercise price	$ 1.70	$ 1.70
Subsequent Event [Member] \| Common Stock [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Warrants exercise price	$ 7.52	$ 7.52
Subsequent Event [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Number of granted, sharess		3,260
Mark L. Baum [Member]
Subsequent Event [Line Items]
Number of granted, sharess			52,821
Common stock withheld for payroll tax withholdings, shares			35,179
Common stock withheld for payroll tax withholdings, value			$ 519,000
Mark L. Baum [Member] \| Subsequent Event [Member] \| Performance Stock Units [Member]
Subsequent Event [Line Items]
Number of granted, sharess		1,567,913
Mark L. Baum [Member] \| Subsequent Event [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Number of granted, sharess		77,167
Cashless exercise of warrants to purchase to common stock	180,000	180,000
Warrants exercise price	$ 8.99	$ 8.99
Common stock withheld for payroll tax withholdings, shares		40,466
Common stock withheld for payroll tax withholdings, value	$ 849,000
Mark L. Baum [Member] \| Subsequent Event [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Number of granted, sharess		62,367

INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 11. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at March 31, 2023 consisted of the following:

SCHEDULE OF INTANGIBLE ASSETS

	Amortization Periods (in years)		Cost		Accumulated Amortization			Impairment		Net Carrying Value
Patents		7-19	$	981,000	$	(183,000	)	$	-	$	798,000
Licenses		20		100,000		(25,000	)		-		75,000
Trademarks		Indefinite		267,000		-			-		267,000
Acquired NDAs		10-15		154,193,000		(3,533,000	)		-		150,660,000
Customer relationships		3-15		596,000		(475,000	)		-		121,000
Trade name		5		75,000		(5,000	)		-		70,000
Non-competition clause		3-4		50,000		(50,000	)		-		-
State pharmacy licenses		25		8,000		(7,000	)		-		1,000
			$	156,270,000	$	(4,278,000	)	$	-	$	151,992,000

Amortization expense for intangible assets for the three months ended March 31, 2023 and 2022 was as follows:

	2023		2022
	For the
	Three Months Ended
	March 31,
	2023		2022
Patents	$	22,000	$	22,000
Licenses		2,000		8,000
Acquired NDAs		2,170,000		341,000
Customer relationships		13,000		33,000
Amortization of intangible assets	$	2,207,000	$	404,000

Estimated future amortization expense for the Company’s intangible assets at March 31, 2023 is as follows:


Remainder of 2023	$	8,777,000
2024		11,673,000
2025		11,652,000
2026		11,652,000
2027		11,652,000
Thereafter		96,319,000
Intangible assets	$	151,725,000

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	30,056,370	29,901,530
Common stock, shares outstanding	30,056,370	29,901,530

INVESTMENT IN SURFACE OPHTHALMICS, INC. - RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2023

Investment In Surface Ophthalmics Inc. - Related Party Transactions

INVESTMENT IN SURFACE OPHTHALMICS, INC. - RELATED PARTY TRANSACTIONS

NOTE 6. INVESTMENT IN SURFACE OPHTHALMICS, INC. - RELATED PARTY TRANSACTIONS

The Company entered into an asset purchase and license agreement with Surface in 2017 and amended it in April 2018 (the “Surface License Agreements”). Pursuant to the terms of the Surface License Agreements, the Company assigned and licensed to Surface certain intellectual property and related rights associated with Surface’s drug candidates (collectively, the “Surface Products”). Surface is required to make mid-single digit royalty payments to the Company on net sales of the Surface Products while any patent rights remain outstanding.

As of March 31, 2023, the Company owned 3,500,000 shares of Surface common stock. Certain Company directors, Richard L. Lindstrom and Perry J. Sternberg are directors of Surface. Dr. Lindstrom is a principal of Flying L Partners, an affiliate of an investor who purchased Surface Series A Preferred Stock. Mark L. Baum, who is the Company’s Chief Executive Officer, was previously a member of the Surface board of directors and resigned from his position as a director of Surface during the three months ended March 31, 2023

The unaudited condensed results of operations information of Surface is summarized below:

SUMMARY OF CONDENSED INCOME STATEMENT

	2023			2022
	For the Three Months Ended March 31,
	2023			2022
Revenues, net	$	-		$	-
Loss from operations	$	(1,587,000	)	$	(1,996,000	)
Net loss	$	(1,524,000	)	$	1,996,000

The unaudited condensed balance sheet information of Surface is summarized below:

SUMMARY OF CONDENSED BALANCE SHEET

	At March 31,		At December 31,
	2023		2022
Current assets	$	13,350,000	$	15,350,000
Non-current assets		902,000		652,000
Total assets	$	14,252,000	$	16,002,000

Total liabilities	$	995,000	$	1,586,000
Total preferred stock and stockholders’ deficit		13,257,000		14,416,000
Total liabilities and stockholders’ equity	$	14,252,000	$	16,002,000

PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 9. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023			December 31, 2021
Property, plant and equipment, net:
Computer hardware	$	1,060,000		$	979,000
Furniture and equipment		922,000			860,000
Lab and pharmacy equipment		4,335,000			4,259,000
Leasehold improvements		6,555,000			6,449,000
		12,872,000			12,547,000
Accumulated depreciation		(9,286,000	)		(9,061,000	)
Property, plant and equipment, net	$	3,586,000		$	3,486,000

For the three months ended March 31, 2023 and 2022, depreciation expense related to the property, plant and equipment was $225,000 and $376,000, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Jul. 31, 2021
Accounts Receivable, after Allowance for Credit Loss	$ 12,111,000			$ 82,000
Effective income tax rate	4.16%	0.00%
Federal income tax rate	21.00%	21.00%
Unrecognized tax benefits	$ 0			0
Eton Pharmaceuticals, Inc. [Member]
Investment owned, at fair value	$ 7,631,000			5,589,000
Investment owned balance shares	1,982,000
Ownership percentage	10.00%
Shares price	$ 3.85
Unrealized gain loss on investments	$ 2,042,000	$ 139,000
Melt Pharmaceuticals, Inc. [Member]
Investment owned balance shares	3,500,000
Ownership percentage	46.00%
Reduction in common stock investment	$ 0		$ 0
Investment interest rate	100.00%
Surface Ophthalmics Inc [Member]
Investment owned balance shares	3,500,000
Ownership percentage					20.00%
Reduction in common stock investment			$ 0
Restricted Stock Units (RSUs) [Member]
Number of shares vestted, RSUs	336,264	277,405
Stock Options, Unvested RSUs and Warrants [Member]
Antidilutive securities	4,750,340	5,546,200
Eton Pharmaceuticals, Inc. [Member]
Investment owned, at fair value	$ 7,631,000			$ 5,589,000

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of RSUs unvested, outstanding, beginning balance \| shares	2,061,719
Weighted average grant date fair value, beginning balance \| $ / shares	$ 6.88
Number of RSUs granted \| shares
Weighted average grant date fair value, RSUs granted \| $ / shares
Number of RSUs vested \| shares	(127,405)
Weighted average grant date fair value, RSUs vested \| $ / shares	$ 7.34
Number of RSUs cancelled/forfeited \| shares	(75,000)
Weighted average grant date fair value, RSUs cancelled/forfeited \| $ / shares	$ 5.83
Number of RSUs unvested, outstanding, ending balance \| shares	1,859,314
Weighted average grant date fair value, ending balance \| $ / shares	$ 6.82

INVESTMENT IN, AND NOTE RECEIVABLE FROM MELT PHARMACEUTICALS, INC. - RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended
	Apr. 30, 2022	Feb. 28, 2019	Mar. 31, 2023	Dec. 31, 2022	Sep. 01, 2021
Due from related parties			$ 198,000	$ 139,000
Rreimbursable expenses			908,000
Melt Loan Agreement [Member]
Loan amount					$ 13,500,000
Debt instrument interest rate stated percentage					12.50%
Increase in interest rate	3.00%
Melt Loan Agreement [Member] \| Third Party Investor [Member]
Loan amount	$ 10,000,000
Melt Pharmaceuticals, Inc. [Member]
Reimbursable expenses			59,000
Melt Pharmaceuticals, Inc. [Member] \| Management Services Agreement [Member]
Administrative fees expense		$ 10,000
Melt Pharmaceuticals, Inc. [Member] \| Management Services Agreement [Member] \| Related Party [Member]
Due from related parties			198,000	139,000
Melt Pharmaceuticals, Inc. [Member] \| Melt Loan Agreement [Member]
Notes receivable related parties			$ 16,501,000	$ 15,984,000

LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Leases

SCHEDULE OF FUTURE LEASE PAYMENT UNDER OPERATING LEASES

Future lease payments under operating leases as of March 31, 2023 were as follows:

Operating Leases

Remainder of 2023 $ 925,000

2024 1,262,000

2025 1,093,000

2026 1,114,000

2027 972,000

Thereafter 5,829,000

Total minimum lease payments 11,195,000

Less: amount representing interest payments (3,314,000 )

Total operating lease liabilities 7,881,000

Less: current portion, operating lease liabilities (744,000 )

Operating lease liabilities, net of current portion $ 7,137,000

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 527,000	$ 858,000
Prepaid computer software licenses and related expenses	1,072,000	1,165,000
Due from Melt Pharmaceuticals	198,000	139,000
Other prepaid expenses	1,689,000	1,331,000
Deposits and other current assets	118,000	118,000
Total prepaid expenses and other current assets	$ 3,604,000	$ 3,611,000

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Company and Background

Harrow Health, Inc. (together with its subsidiaries, partially owned companies and royalty arrangements unless the context indicates or otherwise requires, the “Company” or “Harrow”) is an eyecare pharmaceutical company exclusively focused on the discovery, development, and commercialization of innovative ophthalmic therapies that are accessible and affordable.

The Company owns non-controlling equity positions in Surface Ophthalmics, Inc. (“Surface”) and Melt Pharmaceuticals, Inc. (“Melt”), both companies that began as subsidiaries of Harrow. Harrow also owns royalty rights in various drug candidates being developed by Surface and Melt.

Basis of Presentation

The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other period. For further information, refer to the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned subsidiaries.

Harrow consolidates entities in which it has a controlling financial interest. The Company assesses control under the variable interest entity (“VIE”) model to determine whether the Company is the primary beneficiary of that entity’s operations. The Company consolidates (i) entities in which it holds and/or controls, directly or indirectly, more than 50% of the voting rights, and (ii) entities that the Company deems to be a VIE. All intercompany accounts and transactions have been eliminated in consolidation.

SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE OF CREDIT LOSS (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Accounting Policies [Abstract]
Beginning balance	$ 73,000
Change in expected credit losses	20,000
Write-offs, net of recoveries	(11,000)
Ending balance	$ 82,000

PREPAID EXPENSES AND OTHER CURRENT ASSETS

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
Prepaid insurance	$	527,000	$	858,000
Prepaid computer software licenses and related expenses		1,072,000		1,165,000
Due from Melt Pharmaceuticals		198,000		139,000
Other prepaid expenses		1,689,000		1,331,000
Deposits and other current assets		118,000		118,000
Total prepaid expenses and other current assets	$	3,604,000	$	3,611,000

SUMMARY OF CONDENSED INCOME STATEMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues, net	$ 26,103,000	$ 22,120,000
Loss from operations	1,210,000	2,101,000
Net loss	(6,643,000)	(2,438,000)
Surface Pharmaceuticals Inc [Member]
Revenues, net
Loss from operations	(1,587,000)	(1,996,000)
Net loss	$ (1,524,000)	$ 1,996,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

REVENUES (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

SCHEDULE OF DISAGGREGATED REVENUE

Revenue disaggregated by revenue source for the three months ended March 31, 2023 and 2022 consists of the following:

SCHEDULE OF DISAGGREGATED REVENUE

	2023		2022
	For the Three Months Ended
	March 31,
	2023		2022
Product sales, net	$	20,453,000	$	20,340,000
Commission revenues		-		1,320,000
Transfer of profits		5,650,000		460,000
Total revenues	$	26,103,000	$	22,120,000

SCHEDULE OF CONDENSED INCOME STATEMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues, net	$ 26,103,000	$ 22,120,000
Loss from operations	1,210,000	2,101,000
Net loss	(6,643,000)	(2,438,000)
Melt Pharmaceuticals, Inc. [Member]
Revenues, net
Loss from operations	(1,858,000)	(3,337,000)
Net loss	$ (1,858,000)	$ (3,337,000)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

SCHEDULE OF SHARE BASED COMPENSATION (Details) - Subsequent Event [Member]	Apr. 30, 2023 $ / shares shares
Share-Based Payment Arrangement, Tranche One [Member]
Subsequent Event [Line Items]
Number of shares \| shares	223,988
Target share price \| $ / shares	$ 25
Share-Based Payment Arrangement, Tranche Two [Member]
Subsequent Event [Line Items]
Number of shares \| shares	335,981
Target share price \| $ / shares	$ 35
Share-Based Payment Arrangement, Tranche Three [Member]
Subsequent Event [Line Items]
Number of shares \| shares	447,975
Target share price \| $ / shares	$ 45
Share Based Compensation Award Tranche Four [Member]
Subsequent Event [Line Items]
Number of shares \| shares	559,969
Target share price \| $ / shares	$ 50

SCHEDULE OF FUTURE LEASE PAYMENT UNDER OPERATING LEASES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Leases
Remainder of 2023	$ 925,000
2024	1,262,000
2025	1,093,000
2026	1,114,000
2027	972,000
Thereafter	5,829,000
Total minimum lease payments	11,195,000
Less: amount representing interest payments	(3,314,000)
Total operating lease liabilities	7,881,000
Less: current portion, operating lease liabilities	(744,000)	$ (723,000)
Operating lease liabilities, net of current portion	$ 7,137,000	$ 7,332,000

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Consolidation basis description	entities in which it holds and/or controls, directly or indirectly, more than 50% of the voting rights

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Total revenues	$ 26,103,000	$ 22,120,000
Cost of sales	(8,271,000)	(5,963,000)
Gross profit	17,832,000	16,157,000
Operating expenses:
Selling, general and administrative	15,888,000	13,398,000
Research and development	734,000	658,000
Total operating expenses	16,622,000	14,056,000
Income from operations	1,210,000	2,101,000
Other (expense) income:
Interest expense, net	(4,747,000)	(1,792,000)
Equity in losses of unconsolidated entities		(2,886,000)
Investment gain from Eton Pharmaceuticals	2,042,000	139,000
Loss on extinguishment of debt	(5,465,000)
Other income, net	29,000
Total other expense, net	(8,141,000)	(4,539,000)
Loss before income taxes	(6,931,000)	(2,438,000)
Income tax benefit	288,000
Net loss	$ (6,643,000)	$ (2,438,000)
Basic and diluted net loss per share of common stock	$ (0.22)	$ (0.09)
Weighted average number of shares of common stock outstanding, basic and diluted	30,289,730	27,226,819
Product Sales Net [Member]
Revenues:
Total revenues	$ 20,453,000	$ 20,340,000
Other Revenues [Member]
Revenues:
Total revenues	$ 5,650,000	$ 1,780,000

INVESTMENT IN SURFACE OPHTHALMICS, INC. - RELATED PARTY TRANSACTIONS (Details Narrative)	Mar. 31, 2023 shares
Surface Pharmaceuticals Inc [Member]
investment owned shares	3,500,000

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 18. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to March 31, 2023 through the filing date of this Quarterly Report on Form 10-Q. Based on its evaluation, no events other than those described below need to be disclosed.

In April 2023, the Company issued 62,367 shares of common stock to Mark L. Baum, the Company’s Chief Executive Officer, upon the cashless exercise of options to purchase 180,000 shares at an exercise price of $8.99 per share. The Company withheld from Mr. Baum 77,167 shares as consideration for the cashless exercise and an additional 40,466 shares for payroll tax obligations totaling $849,000.

In April 2023, the Company issued 3,260 shares of common stock upon the exercise of options to purchase 3,260 shares of common stock at exercise prices ranging from $1.70 to $7.52 per share.

In April 2023, the Company granted 1,567,913 performance stock units to members of its senior management including Mark L. Baum, Chief Executive Officer, Andrew R. Boll, Chief Financial Officer, and John P. Saharek, Chief Commercial Officer, which are subject to the satisfaction of certain market-based and continued service conditions (the “2023 PSUs”). The vesting of the 2023 PSUs require (i) a minimum of a two-year service period, and (ii) during a five-year term, the achievement and maintenance of Company common stock price targets ranging between $25 to $50, broken out into four separate tranches as described further in the table below.

SCHEDULE OF SHARE BASED COMPENSATION

Tranche	Number of Shares	Target Share Price
Tranche 1	223,988	$25
Tranche 2	335,981	$35
Tranche 3	447,975	$45
Tranche 4	559,969	$50

SCHEDULE OF CONDENSED BALANCE SHEET (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets	$ 51,687,000	$ 118,260,000
Total assets	217,498,000	157,378,000
Total liabilities	195,970,000	130,138,000
Total preferred stock and stockholders’ deficit	21,883,000	27,595,000
Total liabilities and stockholders’ equity	217,498,000	157,378,000
Melt Pharmaceuticals, Inc. [Member]
Current assets	133,000	655,000
Non-current assets	133,000	107,000
Total assets	266,000	762,000
Total liabilities	20,273,000	19,056,000
Total preferred stock and stockholders’ deficit	(20,007,000)	(18,294,000)
Total liabilities and stockholders’ equity	$ 266,000	$ 762,000

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(12))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479440/944-210-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(8))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 23: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481404/852-10-50-7

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 26: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479853/942-210-S99-1

+ Details

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483467/210-10-45-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481404/852-10-50-7

+ Details

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

+ References

+ Details

- Definition

Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(14))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481404/852-10-50-7

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481404/852-10-50-7

Reference 21: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 22: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.19-26)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

+ Details

- Definition

Amount of liabilities and equity items, including the portion of equity attributable to noncontrolling interests, if any.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-12

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(19))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.6-05(4))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(4)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(6))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(7))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480418/310-10-S99-2

+ Details

INVESTMENT IN, AND NOTE RECEIVABLE FROM MELT PHARMACEUTICALS, INC. - RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENT IN, AND NOTE RECEIVABLE FROM MELT PHARMACEUTICALS, INC. - RELATED PARTY TRANSACTIONS

NOTE 5. INVESTMENT IN, AND NOTE RECEIVABLE FROM MELT PHARMACEUTICALS, INC. - RELATED PARTY TRANSACTIONS

In December 2018, the Company entered into an asset purchase agreement with Melt (the “Melt Asset Purchase Agreement”). Pursuant to the terms of the Melt Asset Purchase Agreement, Melt was assigned certain intellectual property and related rights from the Company to develop, formulate, make, sell, and sub-license certain Company conscious sedation and analgesia related formulations (collectively, the “Melt Products”). Under the terms of the Melt Asset Purchase Agreement, Melt is required to make mid-single digit royalty payments to the Company on net sales of the Melt Products while any patent rights remain outstanding, as well as other conditions.

In February 2019, the Company and Melt entered into a Management Service Agreement between the Company and Melt (the “Melt MSA”), whereby the Company provides to Melt certain administrative services and support, including bookkeeping, web services and human resources related activities, and Melt is required to pay the Company a monthly amount of $10,000. During the three months ended March 31, 2023, the Company recorded $59,000 due from Melt for reimbursable expenses and amounts payable pursuant to the Melt MSA, which are included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. As of March 31, 2023, and December 31, 2022, the Company was due $198,000 and $139,000, respectively, from Melt for reimbursable expenses and amounts due under the Melt MSA. Melt did not make any payments to the Company during the three months ended March 31, 2023.

The Company’s Chief Executive Officer, Mark L. Baum, was previously a member of the Melt board of directors until his resignation during the year ended December 31, 2021. Mr. Baum re-joined the Melt board of directors in January 2023. At the time Mr. Baum re-joined, the Melt board of directors consists of five total board members, including Mr. Baum, who is the only representative of the Company on Melt’s board of directors.

The unaudited condensed results of operations information of Melt is summarized below:

SCHEDULE OF CONDENSED INCOME STATEMENT

	2023			2022
	For the Three Months Ended March 31,
	2023			2022
Revenues, net	$	-		$	-
Loss from operations	$	(1,858,000	)	$	(3,337,000	)
Net loss	$	(1,858,000	)	$	(3,337,000	)

The unaudited condensed balance sheet information of Melt is summarized below:

SCHEDULE OF CONDENSED BALANCE SHEET

	At March 31,			At December 31,
	2023			2022
Current assets	$	133,000		$	655,000
Non-current assets		133,000			107,000
Total assets	$	266,000		$	762,000

Total liabilities	$	20,273,000		$	19,056,000
Total preferred stock and stockholders’ deficit		(20,007,000	)		(18,294,000	)
Total liabilities and stockholders’ equity	$	266,000		$	762,000

Melt Note Receivable

On September 1, 2021, the Company entered into a loan and security agreement in the principal amount of $13,500,000 (the “Melt Loan Agreement”), as lender, with Melt, as borrower. Amounts borrowed under the Melt Loan Agreement bear interest at 12.50% per annum, which interest can be paid in-kind at the option of Melt until the maturity date. The Melt Loan Agreement permits Melt to pay interest only on the principal amount loaned thereunder through the term and all amounts owed were previously due and payable on September 1, 2022. In April 2022, the Company entered into a First Amendment and in September 2022, a Second Amendment (together, the “Amendments”) to the Melt Loan Agreement. The Amendments (i) extended the maturity date of the Melt Loan Agreement to June 1, 2023, which can be extended further to September 1, 2026 upon Melt completing a qualifying financing of a minimum amount of $10,000,000 from third-party investors, (ii) added conditions related to minimum cash amounts following a qualifying financing, and (iii) clarified the definition of material adverse effects. Melt may elect to prepay all, but not less than all, of the amounts owed prior to the maturity date at any time without penalty.

Melt has granted the Company a security interest in substantially all of its personal property, rights and assets, including intellectual property rights, to secure the payment of all amounts owed under the Melt Loan Agreement. The Melt Loan Agreement contains customary representations, warranties and covenants, including covenants by Melt limiting additional indebtedness, liens, mergers and acquisitions, dispositions, investments, distributions, subordinated debt, and transactions with affiliates. The Melt Loan Agreement includes customary events of default, and upon the occurrence of an event of default (subject to cure periods for certain events of default), all amounts owed by Melt thereunder may be declared immediately due and payable by the Company, and the interest rate on the loan may be increased by 3% per annum.

In connection with the Melt Loan Agreement, the Company and Melt entered into a Right of First Refusal Agreement providing the Company with the right, but not the obligation, to match any offer received by Melt associated with the commercial rights to any of Melt’s drug candidates for a period of five years following the effective date of the Melt Loan Agreement.

The net funds received by Melt excluded $908,000 owed to the Company for reimbursable expenses and amounts due under the Melt MSA prior to the effective date of the note receivable. As of March 31, 2023 and December 31, 2022, aggregate principal and accrued interest payable to the Company pursuant to the Melt Loan Agreement amounted to $16,501,000 and $15,984,000, respectively. In accordance with ASC 328, Investments – Equity Method and Joint Ventures, the carrying amount of the notes receivable has been reduced by the Company’s allocated share of Melt’s losses based on its ownership of total debt owed by Melt (see Note 2).

SCHEDULE OF AMORTIZATION EXPENSES FOR INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 2,207,000	$ 404,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	22,000	22,000
Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,000	8,000
New Drug Applications [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,170,000	341,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 13,000	$ 33,000

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended				3 Months Ended		12 Months Ended
	Aug. 31, 2021	Jul. 31, 2021	Dec. 31, 2019	Apr. 30, 2017	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase of intangible asset included in accounts payable and accrued expenses					$ 5,000,000		$ 5,000,000
Klarity License Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty expense					75,000	$ 71,000
Milestone payment in cash					71,000	30,000
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty payment description				Under the terms of the Klarity License Agreement, the Company is required to make royalty payments to Dr. Lindstrom ranging from 3% to 6% of net sales, dependent upon the final formulation of the Klarity Product sold.
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member] \| Initial Payment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty expense				$ 50,000
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member] \| Second Payment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty expense				50,000
Net sales				50,000
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member] \| Final Payment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty expense				50,000
Net sales				$ 100,000
Injectable Asset Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty expense					8,000	7,000
Milestone payment in cash					9,000	8,000
Injectable Asset Purchase Agreement [Member] \| Richard L. Lindstrom, M.D [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty payment description			Under the terms of the Lindstrom APA, the Company is required to make royalty payments to Dr. Lindstrom ranging from 2% to 3% of net sales, dependent upon the final formulation and patent protection of the Lindstrom Product sold
Initial milestone payment			$ 33,000
Asset Purchase, License and Related Agreements [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty expense					$ 293,000	213,000
Sintetica Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payment for royalties		$ 18,000,000
Sintetica Agreement [Member] \| Due Within Thirty Days [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payment for royalties		$ 5,000,000
Wakamoto Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payment for royalties	$ 2,000,000
Commercial payments for royalties	$ 6,200,000
Dexycu Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Commission revenues						1,320,000
Sales and Marketing Agreements [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Description for commission payments					Under the terms of the sales and marketing agreements, the Company is generally required to make commission payments equal to 10% to 14% of net sales for products above and beyond the initial existing sales amounts
Commission expenses					$ 130,000	$ 1,047,000

LEASES

3 Months Ended

Mar. 31, 2023

Leases

LEASES

NOTE 14. LEASES

The Company leases office and laboratory space under non-cancelable operating leases listed below. These lease agreements have remaining terms between one to five years and contain various clauses for renewal at the Company’s option.

	●	An operating lease for 5,789 square feet of office space in Carlsbad, California, which commenced in January 2022 and will expire in March 2025.

	●	An operating lease for 35,326 square feet of lab, warehouse and office space in Ledgewood, New Jersey that expires in July 2026, with an option to extend the term for two additional five-year periods. This includes an amendment, which was made effective July 2020, that extended the term of the original lease and added 1,400 of additional square footage to the lease, and another amendment entered into in May 2021 that extended the term of the lease to July 2027 and added 8,900 square feet of space.

	●	An operating lease for 5,500 square feet of office space in Nashville, Tennessee that expires November 30, 2024, with an option to extend the term for two additional five-year periods.

	●	An operating lease for 11,552 square feet of lab and office space in Nashville, Tennessee which commenced in June 2022 and will expire in June 2027.

At March 31, 2023, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 6.61% and 10.72 years, respectively.

During the three months ended March 31, 2023 and 2022, cash paid for amounts included for the operating lease liabilities was $306,000 and $166,000, respectively. During the three months ended March 31, 2023 and 2022, the Company recorded operating lease expense of $309,000 and $238,000, respectively, which is included in selling, general and administrative expenses.

Future lease payments under operating leases as of March 31, 2023 were as follows:

CAPITALIZED SOFTWARE DEVELOPMENT COSTS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Capitalized Software Development Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ 67,000	$ 43,000

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise of option, shares		$ 148,000	$ 4,000
Proceeds from stock option exercise		148,000	4,000
Common stock withheld for payroll tax withholdings, value		(850,000)	(777,000)
Stock-based compensation		$ 1,633,000	2,016,000
2017 Incentive Stock and Awards Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common shares available for future issuances		2,145,767
Employees and Directors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Forfeiture factor rate		10.00%
Andrew R Boll [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares isssued		23,000
Number of common stock issued	13,398
Number of stock withheld for payroll tax purposes	9,602
Common stock withheld for payroll tax withholdings, value	$ 142,000
Mark L. Baum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares isssued		88,000
Number of common stock issued	52,821
Number of stock withheld for payroll tax purposes	35,179
Common stock withheld for payroll tax withholdings, value	$ 519,000
Mr Boll [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cashless exercise of options, shares		90,000
Number of common stock issued		55,558
Number of common stock issued		$ 6.00
Common stock withheld for payroll tax withholdings, shares		8,921
Common stock withheld for payroll tax withholdings, value		$ 189,000
Maximum [Member] \| 2017 Incentive Stock and Awards Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized		6,000,000
Restricted Stock Units (RSUs) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares isssued
Stock Option Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Closing price of common stock price per share		$ 21.16
Expense expected to recognize over the weighted-average remaining vesting period		$ 1,441,000
Expense expected to recognize over the weighted-average remaining vesting period		3 years
Stock-based compensation		$ 341,000	272,000
Intrinsic value of options exercised		$ 1,819,000
Stock Option Plan [Member] \| Employees and Consultant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Vesting term description		Vesting terms for options granted to employees during the three months ended March 31, 2023 included the following vesting schedule: 25% of the shares subject to the option vest and become exercisable on the first anniversary of the grant date and the remaining 75% of the shares subject to the option vest and become exercisable quarterly in equal installments thereafter over three years.
Unvested RSUs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expense expected to recognize over the weighted-average remaining vesting period		$ 2,476,000
Expense expected to recognize over the weighted-average remaining vesting period		4 months 24 days
Stock-based compensation		$ 1,292,000	1,744,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise of option, shares
Number of stock withheld for payroll tax purposes		53,702	96,622
Common stock withheld for payroll tax withholdings, value			$ (1,000)
Common Stock [Member] \| Mr Boll [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cashless exercise of options, shares		25,521
Common Stock [Member] \| Options Held [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise of option, shares		$ 33,063
Proceeds from stock option exercise		$ 148,000
Cashless exercise of options, shares		33,063
Common Stock [Member] \| Options Held [Member] \| Minimum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise Price		$ 3.50
Common Stock [Member] \| Options Held [Member] \| Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise Price		$ 7.60
Common Stock [Member] \| Restricted Stock Units (RSUs) [Member] \| Director [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares isssued		16,405

INVENTORIES

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 7. INVENTORIES

Inventories are comprised of finished compounded formulations, over-the-counter and prescription retail pharmacy products, branded commercial pharmaceutical products, including those held at a 3PL, related laboratory supplies and active pharmaceutical ingredients. The composition of inventories as of March 31, 2023 and December 31, 2022 was as follows:

SCHEDULE OF INVENTORIES

	March 31, 2023		December 31, 2022
Raw materials	$	5,023,000	$	3,707,000
Work in progress		36,000		38,000
Finished goods		4,034,000		2,796,000
Total inventories	$	9,093,000	$	6,541,000

SCHEDULE OF FAIR VALUE ASSUMPTIONS (Details) - Options Granted to Employees [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average fair value of options granted	$ 10.58
Dividend yield
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (in years)	5 years 6 months
Expected volatility	69.00%
Risk-free interest rate	3.64%
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (in years)	6 years 1 month 9 days
Expected volatility	70.00%
Risk-free interest rate	3.76%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

LEASES (Details Narrative)	3 Months Ended
LEASES (Details Narrative)	Mar. 31, 2023 USD ($) ft²	Mar. 31, 2022 USD ($)
Weighted average discount rate percent	6.61%
Lease term	10 years 8 months 19 days
Operating lease payments \| $	$ 306,000	$ 166,000
Operating lease expense \| $	$ 309,000	$ 238,000
Carlsbad [Member]
Area of land	5,789
Lease expiration date, description	March 2025
Ledgewood [Member]
Area of land	35,326
Lease expiration date, description	July 2026
Area of land	1,400
Ledgewood [Member] \| Lease Amendment [Member]
Area of land	8,900
Nashville [Member]
Area of land	5,500
Lease expiration date, description	November 30, 2024
Nashville 1 [Member]
Area of land	11,552
Lease expiration date, description	June 2027
Minimum [Member] \| Office and Laboratory Space [Member]
Lease term	1 year
Maximum [Member] \| Office and Laboratory Space [Member]
Lease term	5 years

CAPITALIZED SOFTWARE DEVELOPMENT COSTS (Tables)

3 Months Ended

Mar. 31, 2023

Capitalized Software Development Costs

SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS

Capitalized software development costs at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023			December 31, 2022
Capitalized internal-use software development costs	$	1,415,000		$	1,413,000
Acquired third-party software license for internal-use		159,000			159,000
Total gross capitalized software for internal-use		1,574,000			1,572,000
Accumulated amortization		(860,000	)		(793,000	)
Capitalized internal-use software in process		1,563,000			1,333,000
	$	2,277,000		$	2,112,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following represents an update for the three months ended March 31, 2023 to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Risks, Uncertainties and Liquidity

The Company is subject to certain regulatory standards, approvals, guidelines and inspections which could impact the Company’s ability to make, dispense, and sell certain products. If the Company was required to cease compounding and selling certain products as a result of regulatory guidelines or inspections, this may have a material impact on the Company’s financial condition, liquidity and results of operations.

Credit Losses

The Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables. The Company considers historical collection rates, the current financial status of its customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable, the Company believes that the carrying value, net of expected losses, approximates fair value and therefore, relies more on historical and current analysis of such financial instruments, including its trade receivables.

To determine the provision for credit losses for accounts receivable, the Company has disaggregated its accounts receivable by class of customer at the business component level, as the Company determined that the risk profile of its customers is consistent based on the type and industry in which they operate, mainly in the life sciences industry. Each business component is analyzed for estimated credit losses individually. In doing so, the Company establishes a historical loss matrix, based on the previous collections of accounts receivable by the age of such receivables, and evaluates the current and forecasted financial position of its customers, as available. Further, the Company considers macroeconomic factors and the status of the life sciences industry to estimate if there are current expected credit losses within its trade receivables based on the trends of the Company’s expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default.

The accounts receivable balance on the Company’s condensed consolidated balance sheet as of March 31, 2023 was $12,111,000, net of $82,000 of allowances. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected at March 31, 2023:

Balance at January 1, 2023	$	73,000
Change in expected credit losses		20,000
Write-offs, net of recoveries		(11,000	)
Balance at March 31, 2023	$	82,000

Business Combinations and Asset Acquisitions

The Company evaluates acquisitions of assets and other similar transactions to assess whether the transaction should be accounted for as a business combination or asset acquisition by first applying a screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether the Company has acquired inputs, process, and output, which would meet the requirements of a business. If determined to be a business combination, the Company accounts for the transaction under the acquisition method of accounting as indicated in Financial Account Standards Board (“FASB”). Accounting Standards Codification (“ASC”) 805, Business Combinations, requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including any contingent assets and liabilities, and any non-controlling interest in the acquiree based on the fair value estimates as of the date of acquisition. In accordance with ASC 805 – Business Combinations, the Company recognizes and measures goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.

The consideration for the Company’s business acquisitions may include future payments that are contingent upon the occurrence of a particular event or events. The obligation for such contingent consideration payments are recorded at fair value on the acquisition date. The contingent consideration obligations are then evaluated each reporting period. Changes in the fair value of contingent consideration, other than changes due to payments, would be recognized as a gain or loss and recorded in the condensed consolidated statement of operations.

If determined to be an asset acquisition, the Company accounts for the transaction under ASC 805-50 Business Combinations – Related Issues, which requires the acquiring entity in an asset acquisition to recognize assets acquired and liabilities assumed based on the cost of the acquired assets on a relative fair value basis, which includes transaction costs in addition to consideration given. No gain or loss is recognized as of the date of acquisition unless the fair value of non-cash assets given as consideration differs from the assets’ carrying amounts on the acquiring entity’s financial statements. Consideration transferred that is non-cash will be measured based on either the cost (which shall be measured based on the fair value of the consideration given) or the fair value of the assets acquired, and liabilities assumed, whichever is more reliably measurable. Goodwill is not recognized in an asset acquisition and any excess consideration transferred over the fair value of the net assets acquired is allocated to the identifiable assets based on relative fair values.

Fair Value Measurements

Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The established fair value hierarchy prioritizes the use of inputs used in valuation methodologies into the following three levels:

●	Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.
●	Level 2: Applies to assets or liabilities for which there are significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
●	Level 3: Applies to assets or liabilities for which there are significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, Level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

At March 31, 2023 and December 31, 2022, the Company measured its investment in Eton on a recurring basis. The Company’s investment in Eton is classified as Level 1 as the fair value is determined using quoted market prices in active markets for the same securities. As of March 31, 2023 and December 31, 2022, the fair market value of the Company’s investment in Eton was $7,631,000 and $5,589,000, respectively.

The Company carries the 2026 Notes at face value, including the unamortized premium, less unamortized debt issuance costs, the 2027 Notes are carried at face value less unamortized debt issuance costs, and the Oaktree Loan is carried at face value less the original issue discount and unamortized debt issuance costs on the condensed consolidated balance sheets and presents fair value for disclosure purposes only. The 2026 Notes and 2027 Notes are classified as Level 1 instruments as the fair value is determined using quoted market prices in active markets for the same securities.

The following table presents the estimated fair values and the carrying values:

SCHEDULE OF ESTIMATED FAIR VALUE

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
2026 Notes	$	72,628,000	$	73,590,000	$	72,436,000	$	71,550,000
2027 Notes	$	36,900,000	$	40,250,000	$	31,738,000	$	35,112,000
Oaktree Loan	$	59,322,000	$	65,000,000	$	-	$	-

The Company’s other financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued payroll and related liabilities, deferred revenue and customer deposits and operating and finance lease liabilities. The carrying amount of these financial instruments, except for operating and finance lease liabilities, approximates fair value due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying values of the operating and finance lease liabilities approximate their respective fair values.

Basic and Diluted Net Loss per Common Share

Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common and common equivalent shares, such as stock options, restricted stock units (“RSUs”) and warrants, outstanding during the period. Common equivalent shares (using the treasury stock method) from stock options, unvested RSUs and warrants was 4,750,340 and 5,546,200 at March 31, 2023 and 2022, respectively, and are excluded in the calculation of diluted net loss per common share for the periods presented, because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation were RSUs awarded to directors that had vested, but the issuance and delivery of the shares are deferred until the director resigns. The number of unissued shares underlying vested RSUs at March 31, 2023 and 2022 was 336,264 and 277,405, respectively.

The following table shows the computation of basic and diluted net loss per share of common stock for the three months ended March 31, 2023 and 2022:

	2023			2022
	For the Three Months Ended
	March 31,
	2023			2022

Numerator – net loss	$	(6,643,000	)	$	(2,438,000	)
Denominator – weighted average
number of shares outstanding, basic and diluted		30,289,730			27,226,819
Net loss per share, basic and diluted	$	(0.22	)	$	(0.09	)

Income Taxes

The Company calculates its quarterly tax provision pursuant to the guidelines in ASC 740-270, Income Taxes. Generally, ASC 740-270 requires companies to estimate the annual effective tax rate for current year ordinary income. The estimated annual effective tax rate represents the best estimate of the tax provision in relation to the best estimate of pre-tax ordinary income or loss. The estimated annual effective tax rate is then applied to year-to-date ordinary income or loss to calculate the year-to-date interim tax provision and is adjusted for discrete items that occur within the period.

The Company’s effective tax rate was 4.16% and 0% for the three months ended March 31, 2023 and 2022, respectively. The Company’s effective tax rate for the three months ended March 31, 2023 and 2022 differed from the U.S. federal statutory tax rate of 21% due to state taxes, permanent book-tax differences related to Internal Revenue Code Section 162(m) excess officer compensation limitation and share-based compensation and the change in valuation allowance.

As of March 31, 2023 and December 31, 2022, there were no unrecognized tax benefits included in the condensed consolidated balance sheets that would, if recognized, affect the effective tax rate.

Investment in Eton Pharmaceuticals, Inc.

As of March 31, 2023, the Company owned 1,982,000 shares of Eton common stock, which represented less than 10% of the equity and voting interests of Eton. At March 31, 2023, the fair market value of Eton’s common stock was $3.85 per share. In accordance with the ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the Company recorded an unrealized investment gain from its Eton common stock position of $2,042,000 and $139,000 during the three months ended March 31, 2023 and 2022, respectively, related to the change in fair market value of its investment in Eton during the measurement period. As of March 31, 2023 and December 31, 2022, the fair market value of the Company’s investment in Eton was $7,631,000 and $5,589,000, respectively.

Investment in Melt Pharmaceuticals, Inc. – Related Party

The Company owns 3,500,000 shares of common stock of Melt which represented approximately 46% of the equity and voting interests of Melt as of March 31, 2023. The Company analyzes its investment in Melt and related agreements on a regular basis to evaluate its position of variable interests in Melt. The Company has determined that it does not have the ability to control Melt, however it has the ability to exercise significant influence over the operating and financial decisions of Melt and uses the equity method of accounting for this investment. Under this method, the Company recognizes earnings and losses in Melt in its condensed consolidated financial statements and adjusts the carrying amount of its investment in Melt accordingly. Any intra-entity profits and losses are eliminated. During the year ended December 31, 2021, the Company reduced the carrying value of its common stock investment in Melt to $0 as a result of the Company recording its share of equity losses in Melt since its deconsolidation in 2019. As of March 31, 2023, and at the time of entering into the Melt Loan Agreement (see Note 5), the Company owned 100% of Melt’s indebtedness. Following the reduction of the carrying value of the Company’s common stock investment in Melt to $0, the Company began recording 100% of the equity method losses of Melt, based on its ownership of Melt’s total indebtedness. In addition, the Company treats interest paid in kind on the Melt Loan Agreement as an in-substance capital contribution and reduces its investment in Melt accordingly, rather than recording interest income. The Company has no other requirements to advance funds to Melt.

The following table summarizes the Company’s investments in Melt as of March 31, 2023:

SCHEDULE OF INVESTMENT

	Cost		Share of Equity			Paid-in-Kind		In-substance			Net
	Basis		Method Losses			Interest		Capital Contributions			Carrying value
Common stock	$	5,810,000	$	(5,810,000	)	$	-	$			$	-
Loan		13,500,000		(13,500,000	)		3,001,000		(3,001,000	)		-
	$	19,310,000	$	(19,310,000	)	$	3,001,000	$	(3,001,000	)	$	-

See Note 5 for more information and related party disclosure regarding Melt.

Investment in Surface Ophthalmics, Inc. – Related Party

The Company owns 3,500,000 common shares of Surface, which represented approximately 20% of Surface’s equity and voting interests as of March 31, 2023, and uses the equity method of accounting for this investment, as management has determined that the Company has the ability to exercise significant influence over the operating and financial decisions of Surface. Under this method, the Company recognizes earnings and losses in Surface in its consolidated financial statements and adjusts the carrying amount of its investment in Surface accordingly. The Company’s share of earnings and losses are based on the Company’s ownership interest of Surface. Any intra-entity profits and losses are eliminated. During the year ended December 31, 2021, the Company reduced its common stock investment in Surface to $0 as a result of the Company recording its share of equity losses of Surface. The Company has no other investments in Surface.

The following table summarizes the Company’s investment in Surface as of March 31, 2023:

SCHEDULE OF INVESTMENT

	Cost		Share of Equity			Net
	Basis		Method Losses			Carrying value
Common stock	$	5,320,000	$	(5,320,000	)	$	-

See Note 6 for more information and related party disclosure regarding Surface.

Recently Adopted Accounting Pronouncements

In June 2016, FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for the fiscal years beginning after December 15, 2022. The Company adopted ASU 2016-13 on January 1, 2023. Based on the composition of the Company’s accounts receivable, and other financial assets, including current market conditions and historical credit loss activity, the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements or disclosures. Specifically, the Company’s estimate of expected credit losses as of March 31, 2023, using its expected credit loss evaluation process described above, resulted in no adjustments to the provision for credit losses and no cumulative-effect adjustment to accumulated deficit on the adoption date of the standard.

PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023			December 31, 2021
Property, plant and equipment, net:
Computer hardware	$	1,060,000		$	979,000
Furniture and equipment		922,000			860,000
Lab and pharmacy equipment		4,335,000			4,259,000
Leasehold improvements		6,555,000			6,449,000
		12,872,000			12,547,000
Accumulated depreciation		(9,286,000	)		(9,061,000	)
Property, plant and equipment, net	$	3,586,000		$	3,486,000

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable	$ 6,237,000	$ 6,440,000
Accrued insurance premium	237,000	575,000
Accrued IHEEZO milestone payment (see Note 16)	5,000,000	5,000,000
Accrued RPC transition payments (see Note 4)	307,000	453,000
Accrued litigation settlements	49,000	49,000
Accrued exit fee for note payable (see Note 13)	2,275,000
Accrued interest	1,964,000	1,254,000
Total accounts payable and accrued expenses	16,069,000	13,771,000
Less: Current portion	(13,794,000)	(13,771,000)
Non-current total accrued expenses	$ 2,275,000

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

NOTE 15. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Common Stock

During the three months ended March 31, 2023, the Company issued 33,063 shares of common stock and received proceeds of $148,000 upon the exercise of options to purchase 33,063 shares of common stock with exercise prices ranging from $3.50 to $7.60 per share.

During the three months ended March 31, 2023, 23,000 RSUs granted in January 2020 to Andrew R. Boll, the Company’s Chief Financial Officer, vested, and in January 2023, the Company issued 13,398 shares of common stock to Mr. Boll, net of 9,602 shares of common stock withheld for payroll tax withholdings totaling $142,000.

During the three months ended March 31, 2023, 88,000 RSUs granted in January 2020 to Mark L. Baum, the Company’s Chief Executive Officer, vested, and in January 2023, the Company issued 52,821 shares of common stock to Mr. Baum, net of 35,179 shares of common stock withheld for payroll tax withholdings totaling $519,000.

During the three months ended March 31, 2023, the Company issued 55,558 shares of common stock to Mr. Boll, upon the cashless exercise of options to purchase 90,000 shares at an exercise price of $6.00 per share. The Company withheld from Mr. Boll 25,521 shares as consideration for the cashless exercise and an additional 8,921 shares for payroll tax obligations totaling $189,000.

During the three months ended March 31, 2023, 16,405 shares of the Company’s common stock underlying RSUs issued to directors vested, but the issuance and delivery of these shares are deferred until the applicable director resigns.

Stock Option Plan

On September 17, 2007, the Company’s Board of Directors and stockholders adopted the Company’s 2007 Incentive Stock and Awards Plan, which was subsequently amended on November 5, 2008, February 26, 2012, July 18, 2012, May 2, 2013 and September 27, 2013 (as amended, the “2007 Plan”). The 2007 Plan reached its term in September 2017, and we can no longer issue additional awards under this plan; however, options previously issued under the 2007 Plan will remain outstanding until they are exercised, reach their maturity or are otherwise cancelled/forfeited. On June 13, 2017, the Company’s Board of Directors and stockholders adopted the Company’s 2017 Incentive Stock and Awards Plan which was subsequently amended on June 3, 2021 (as amended, the “2017 Plan” together with the 2007 Plan, the “Plans”). As of March 31, 2023, the 2017 Plan provides for the issuance of a maximum of 6,000,000 shares of the Company’s common stock. The purposes of the Plans are to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in the Company’s development and financial success. Under the Plans, the Company is authorized to issue incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, non-qualified stock options, restricted stock units and restricted stock. The Plans are administered by the Compensation Committee of the Company’s Board of Directors. The Company had 2,145,767 shares available for future issuances under the 2017 Plan at March 31, 2023.

Stock Options

A summary of stock option activity under the Plans for the three months ended March 31, 2023 is as follows:

SCHEDULE OF STOCK OPTION PLAN ACTIVITY

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding – January 1, 2022		3,027,701		$	5.90
Options granted		28,500		$	17.40
Options exercised		(123,063	)	$	5.54
Options cancelled/forfeited		(42,112	)	$	5.61
Options outstanding – March 31, 2023		2,891,026		$	6.03		4.30	$	43,730,000
Options exercisable		2,589,182		$	5.73		3.77	$	39,941,000
Options vested and expected to vest		2,848,713		$	5.99		4.23	$	43,219,000

The aggregate intrinsic value in the table above represents the total pre-tax amount of the proceeds, net of exercise price, which would have been received by option holders if all option holders had exercised and immediately sold all shares underlying options with an exercise price lower than the market price on March 31, 2023, based on the closing price of the Company’s common stock of $21.16 on that date.

During the three months ended March 31, 2023, the Company granted stock options to certain employees. The stock options were granted with an exercise price equal to the current market price of the Company’s common stock, as reported by the securities exchange on which the common stock was then listed, at the grant date and have contractual terms of ten years. Vesting terms for options granted to employees during the three months ended March 31, 2023 included the following vesting schedule: 25% of the shares subject to the option vest and become exercisable on the first anniversary of the grant date and the remaining 75% of the shares subject to the option vest and become exercisable quarterly in equal installments thereafter over three years. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the Plans) and in the event of certain modifications to the option award agreement.

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The expected term of options granted to employees and directors was determined in accordance with the “simplified approach,” as the Company has limited, relevant, historical data on employee exercises and post-vesting employment termination behavior. The expected risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The financial statement effect of forfeitures is estimated at the time of grant and revised, if necessary, if the actual effect differs from those estimates. For option grants to employees and directors, the Company assigns a forfeiture factor of 10%. These factors could change in the future, which would affect the determination of stock-based compensation expense in future periods. Utilizing these assumptions, the fair value is determined at the date of grant.

The table below illustrates the fair value per share determined using the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to employees:

SCHEDULE OF FAIR VALUE ASSUMPTIONS

	2023
Weighted-average fair value of options granted	$	10.58
Expected terms (in years)		5.50-6.11
Expected volatility		69-70	%
Risk-free interest rate		3.64-3.76	%
Dividend yield		-

The following table summarizes information about stock options outstanding and exercisable at March 31, 2023:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$1.47 - $1.73		298,112		4.71	$	1.72		298,112	$	1.72
$2.23 - $2.60		309,068		3.61	$	2.26		309,068	$	2.26
$3.95		310,000		2.93	$	3.95		310,000	$	3.95
$4.08 - $6.30		409,850		5.66	$	5.99		398,194	$	6.00
$6.75 - $7.30		402,000		7.43	$	7.18		279,500	$	7.29
$7.37 - $7.79		260,323		5.13	$	7.53		166,760	$	7.50
$7.87		600,000		2.33	$	7.87		600,000	$	7.87
$7.89 - $12.38		274,173		2.57	$	9.12		227,548	$	8.84
$15.17		7,500		9.84	$	15.17		-	$	-
$18.35		20,000		9.82	$	18.35		-	$	-
$1.47 - $18.35		2,891,026		4.30	$	6.03		2,589,182	$	5.73

As of March 31, 2023, there was approximately $1,441,000 of total unrecognized compensation expense related to unvested stock options granted under the Plans. That expense is expected to be recognized over the weighted-average remaining vesting period of 3.0 years. The stock-based compensation for all stock options was $341,000 and $272,000 during the three months ended March 31, 2023 and 2022, respectively.

The intrinsic value of options exercised during the three months ended March 31, 2023 was $1,819,000.

Restricted Stock Units/Performance Stock Units

RSU awards are granted subject to certain vesting requirements and other restrictions, including performance and market-based vesting criteria. The grant date fair value of the RSUs, which has been determined based upon the market value of the Company’s common stock on the grant date, is expensed over the vesting period of the RSUs.

A summary of the Company’s RSU activity (including performance stock units) and related information for the three months ended March 31, 2023 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2023		2,061,719		$	6.88
RSUs granted		-		$	-
RSUs vested		(127,405	)	$	7.34
RSUs cancelled/forfeited		(75,000	)	$	5.83
RSUs unvested - March 31, 2023		1,859,314		$	6.82

As of March 31, 2023, the total unrecognized compensation expense related to unvested RSUs was approximately $2,476,000, which is expected to be recognized over a weighted-average period of 0.4 years, based on estimated and actual vesting schedules of the applicable RSUs. The stock-based compensation for RSUs during the three months ended March 31, 2023 and 2022 was $1,292,000 and $1,744,000, respectively.

Stock-Based Compensation Summary

The Company recorded stock-based compensation related to equity instruments granted to employees, directors and consultants as follows:

	2023		2022
	For the
	Three Months Ended March 31,
	2023		2022
Employees - selling, general and administrative	$	1,328,000	$	1,676,000
Employees - R&D		163,000		186,000
Directors - selling, general and administrative		125,000		100,000
Consultants - R&D		17,000		54,000
Total	$	1,633,000	$	2,016,000

REVENUES

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUES

NOTE 3. REVENUES

The Company accounts for contracts with customers in accordance with ASC 606, Revenues from Contracts with Customers. The Company has three primary streams of revenue: (1) revenue recognized from sales of products through its pharmacy and outsourcing facility and sales of branded products to wholesalers through a third-party logistics (“3PL”) partner, (2) revenue recognized from a commission agreement with a third party, and (3) revenue recognized from intellectual property licenses and asset purchase agreements.

Product Revenues

The Company sells prescription medications directly through its pharmacy, outsourcing facility and 3PL partner. Revenue from the Company’s pharmacy services includes: (i) the portion of the price the client pays directly to the Company, net of any volume-related or other discounts paid back to the client, (ii) the price paid to the Company by individuals, and (iii) customer copayments made directly to the pharmacy network. Sales taxes are not included in revenue. Following the core principles of ASC 606, the Company has identified the following:

1.	Identify the contract(s) with a customer: A contract is deemed to exist when the customer places an order through receipt of a prescription, via an online order or via receipt of a purchase order from a customer. For branded products, orders are received through the Company’s 3PL partner, and the customer takes title of the products via formal purchase orders placed and fulfilled.

2.	Identify the performance obligations in the contract: Obligations for fulfillment of the Company’s contracts consist of delivering the product to customers at their specified destination. ASU 2016-10 was issued in April 2016 and amended ASC 606 for shipping and handling activities as follows: If the customer takes control of the goods after shipment, shipping and handling activities would always be considered a fulfillment activity and not treated as a separate performance obligation. If the customer takes control of the goods before shipment, entities must make an accounting policy election to treat shipping and handling activities as either a fulfillment cost or as a separate performance obligation. The Company has elected to treat its shipping and handling activities as a fulfillment cost..

3.	Determine the transaction price: The transaction price is based on an amount that reflects the consideration to which the Company expects to be entitled, net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively, sales deductions) and an estimate for returns and replacements established at the time of sale. The Company utilizes the services of a third-party professional services firm to estimate rebates and chargebacks associated with sales of its branded products. The transfer of promised goods is satisfied within a year, and therefore there are no significant financing components. There is no non-cash consideration related to product sales.

4.	Allocate the transaction price to the performance obligations in the contract: Because there is only one performance obligation for product sales, no allocation is necessary.

5.	Recognize revenue when (or as) the entity satisfies a performance obligation: Revenue from products is recognized upon transfer of control of a product to a customer. This generally occurs upon shipment unless contractual terms with a customer state that transfer of control occurs at delivery.

Commission Revenues

The Company had entered into an agreement whereby it was paid a fee calculated based on sales the Company generates from a pharmaceutical product that is owned by a third party. The revenue earned from this arrangement was recognized, at which point there was no future performance obligation required by the Company and no consequential continuing involvement on the Company’s part to recognize the associated revenue.

Revenues From Transfer of Acquired Product Profit

The Company entered into agreements whereby it purchased the exclusive commercial rights to assets associated with certain ophthalmic products from another pharmaceutical company (the “Seller”). During a temporary, transition period, the Seller continues to manufacture and market these products and transfer the net profit from the sale of the products to the Company. The revenue recognized by the Company from the transfer of net profit was recognized at the time profit from the product sales were calculated by the Seller and confirmed by the Company, typically on a monthly basis, at which point there is no future performance obligation required by the Company and no consequential continuing involvement on the Company’s part to recognize the associated revenue. On a quarterly basis, the Seller invoices the Company for all credits and reimbursements (“Chargebacks”) made to customers related to the products. The Company uses historical actual experience to estimate Chargebacks associated with the net profit transferred. The estimate is recorded as a reduction in revenues in the Company’s condensed consolidated statements of operations and accounts receivable in the condensed consolidated balance sheets, at the time the revenue is recognized.

Intellectual Property License Revenues

The Company currently holds five intellectual property licenses and related agreements pursuant to which the Company has agreed to license or sell to a customer with the right to access the Company’s intellectual property. License arrangements may consist of non-refundable upfront license fees, data transfer fees, research reimbursement payments, exclusive license rights to patented or patent pending compounds, technology access fees, and various performance or sales milestones. These arrangements can be multiple-element arrangements, the revenue of which is recognized at the point in time that the performance obligation is met.

Non-refundable fees that are not contingent on any future performance by the Company and require no consequential continuing involvement on the part of the Company are recognized as revenue when the license term commences and the licensed data, technology, compounded drug preparation and/or other deliverable is delivered. Such deliverables may include physical quantities of compounded drug preparations, design of the compounded drug preparations and structure-activity relationships, the conceptual framework and mechanism of action, and rights to the patents or patent applications for such compounded drug preparations. The Company defers recognition of non-refundable fees if it has continuing performance obligations without which the technology, right, product or service conveyed in conjunction with the non-refundable fee has no utility to the licensee and that are separate and independent of the Company’s performance under the other elements of the arrangement. In addition, if the Company’s continued involvement is required, through research and development services that are related to its proprietary know-how and expertise of the delivered technology or can only be performed by the Company, then such non-refundable fees are deferred and recognized over the period of continuing involvement. Guaranteed minimum annual royalties are recognized on a straight-line basis over the applicable term.

Revenue disaggregated by revenue source for the three months ended March 31, 2023 and 2022 consists of the following:

SCHEDULE OF DISAGGREGATED REVENUE

	2023		2022
	For the Three Months Ended
	March 31,
	2023		2022
Product sales, net	$	20,453,000	$	20,340,000
Commission revenues		-		1,320,000
Transfer of profits		5,650,000		460,000
Total revenues	$	26,103,000	$	22,120,000

Deferred revenue and customer deposits at March 31, 2023 and December 31, 2022 were $67,000 and $113,000, respectively. All deferred revenue and customer deposit amounts at December 31, 2022 were recognized as revenue during the three months ended March 31, 2023.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

SUMMARY OF CONDENSED BALANCE SHEET (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets	$ 51,687,000	$ 118,260,000
Total assets	217,498,000	157,378,000
Total liabilities	195,970,000	130,138,000
Total preferred stock and stockholders’ deficit	21,883,000	27,595,000
Total liabilities and stockholders’ equity	217,498,000	157,378,000
Surface Pharmaceuticals Inc [Member]
Current assets	13,350,000	15,350,000
Non-current assets	902,000	652,000
Total assets	14,252,000	16,002,000
Total liabilities	995,000	1,586,000
Total preferred stock and stockholders’ deficit	13,257,000	14,416,000
Total liabilities and stockholders’ equity	$ 14,252,000	$ 16,002,000

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483467/210-10-45-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481404/852-10-50-7

+ Details

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

Amount of liabilities and equity items, including the portion of equity attributable to noncontrolling interests, if any.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

+ Details

REVENUES (Details Narrative) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract with customer liability current	$ 67,000	$ 113,000

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 12. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at March 31, 2023 and December 31, 2022 consisted of the following:

	2023			2022
	March 31,			December 31,
	2023			2022
Accounts payable	$	6,237,000		$	6,440,000
Accrued insurance premium		237,000			575,000
Accrued IHEEZO milestone payment (see Note 16)		5,000,000			5,000,000
Accrued RPC transition payments (see Note 4)		307,000			453,000
Accrued litigation settlements		49,000			49,000
Accrued exit fee for note payable (see Note 13)		2,275,000			-
Accrued interest		1,964,000			1,254,000
Total accounts payable and accrued expenses	$	16,069,000		$	13,771,000
Less: Current portion		(13,794,000	)		(13,771,000	)
Non-current total accrued expenses	$	2,275,000		$	-

The Company financed all insurance policies for the policy term of August 17, 2022 through August 16, 2023. The financing agreement has an interest rate of 4.13% per annum and requires eight monthly payments of $114,000.

DEBT (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

SCHEDULE OF FUTURE MINIMUM PAYMENT UNDER NOTES PAYABLES

At March 31, 2023, future minimum payments under the Company’s debt are as follows:

	Amount
Remainder of 2023	$	14,145,000
2024		18,695,000
2025		18,695,000
2026		147,325,000
2027		45,030,000
Total minimum payments		243,890,000
Less: amount representing interest payments		(63,640,000	)
Notes payable, gross		180,250,000
Less: unamortized discount, net of premium		(11,400,000	)
Notes payable, net of unamortized discount	$	168,850,000

DEBT (Details Narrative) - USD ($)			1 Months Ended				3 Months Ended
DEBT (Details Narrative) - USD ($)	Jan. 19, 2023	Dec. 14, 2022	Mar. 31, 2023	Jun. 30, 2021	May 31, 2021	Apr. 30, 2021	Mar. 31, 2023	Mar. 31, 2022	Jan. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Debt principal amount							$ 761,000	$ 193,000
Oaktree Loan [Member]
Debt Instrument [Line Items]
Debt principal amount							12,000
Debt principal amount							95,000
11.875% Senior Notes Due 2027 [Member]
Debt Instrument [Line Items]
Debt principal amount			$ 950,000				950,000		$ 5,250,000	$ 35,000,000
Proceeds from issuance of debt							$ 36,699,000
Debt instrument maturity date							Dec. 31, 2027
Interest rate, during period							1187.50%
Debt principal amount							$ 200,000
Debt principal amount							$ 1,395,000
Interest rate									11.875%
Shares issued price per share			$ 25.00				$ 25.00
Deducting underwriting discounts and commissions and expenses			$ 3,551,000				$ 3,551,000
Redemption description							redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus a make-whole amount, if any, plus accrued and unpaid interest to, but excluding, the date of redemption. The Company may redeem the 2027 Notes for cash in whole or in part at any time at its option (i) on or after December 31, 2024 and prior to December 31, 2025, at a price equal to $25.50 per note, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after December 31, 2025 and prior to December 31, 2026, at a price equal to $25.25 per note, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iii) on or after December 31, 2026 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Company is required to redeem the 2027 Notes, for cash, in whole but not in part, at the price of $25.50 per note
8.625% Senior Notes Due 2026 [Member]
Debt Instrument [Line Items]
Debt principal amount						$ 50,000,000
Debt instrument increase decrease for period net					$ 5,000,000
Debt instrument maturity date						Apr. 30, 2026
Interest rate, during period						8.625%
Debt principal amount							$ 193,000	193,000
Debt principal amount							1,810,000	$ 1,810,000
Deducting underwriting discounts and commissions and expenses				$ 1,158,000
Redemption description						redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed
Debt instrument unamortized premium				322,000
8.625% Senior Notes Due 2026 [Member] \| Investor [Member]
Debt Instrument [Line Items]
Debt instrument increase decrease for period net				20,000,000
Proceeds from issuance of debt				$ 19,164,000		$ 51,909,000
Shares issued price per share				$ 25.75		$ 25.00
Deducting underwriting discounts and commissions and expenses						$ 3,091,000
Interest expense debt				$ 278,000
Credit and Guaranty Agreement [Member] \| Oaktree Fund Administration LLC [Member]
Debt Instrument [Line Items]
Debt principal amount			$ 65,000,000				65,000,000
Proceeds from issuance of debt							$ 30,000,000
Debt instrument maturity date	Jan. 19, 2026
Interest rate, during period							1139.80%
Fees and offering expenses							$ 915,000
Original debt discount							$ 2,500,000
Interest rate			3.50%				3.50%
Stock issued							$ 2,275,000
Debt principal amount							$ 5,690,000
Warrants to purchase shares			750,000				750,000
Credit and Guaranty Agreement [Member] \| Oaktree Fund Administration LLC [Member] \| Common Stock [Member]
Debt Instrument [Line Items]
Warrants to purchase shares			375,000				375,000
Credit and Guaranty Agreement [Member] \| Oaktree Fund Administration LLC [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Interest rate, during period							650.00%
Credit and Guaranty Agreement [Member] \| Oaktree Fund Administration LLC [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument increase decrease for period net							$ 35,000,000
Credit and Guaranty Agreement [Member] \| Oaktree Fund Administration LLC [Member] \| Senior Secured Term Loan [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt principal amount			$ 100,000,000				100,000,000
Loan and Security Agreement [Member] \| BR Loan [Member]
Debt Instrument [Line Items]
Debt principal amount		$ 100,000,000							$ 59,750,000
Debt instrument maturity date		Dec. 14, 2025
Interest rate		3.00%
Debt principal amount							356,000
Debt principal amount							1,565,000
Interest rate		10.875%
Proceeds from loans receivable			$ 1,200,000
Debt principal amount							$ 5,465,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Risks, Uncertainties and Liquidity

Risks, Uncertainties and Liquidity

Credit Losses

Credit Losses

Balance at January 1, 2023	$	73,000
Change in expected credit losses		20,000
Write-offs, net of recoveries		(11,000	)
Balance at March 31, 2023	$	82,000

Business Combinations and Asset Acquisitions

Business Combinations and Asset Acquisitions

Fair Value Measurements

Fair Value Measurements

●	Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.
●	Level 2: Applies to assets or liabilities for which there are significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
●	Level 3: Applies to assets or liabilities for which there are significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, Level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

The following table presents the estimated fair values and the carrying values:

SCHEDULE OF ESTIMATED FAIR VALUE

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
2026 Notes	$	72,628,000	$	73,590,000	$	72,436,000	$	71,550,000
2027 Notes	$	36,900,000	$	40,250,000	$	31,738,000	$	35,112,000
Oaktree Loan	$	59,322,000	$	65,000,000	$	-	$	-

Basic and Diluted Net Loss per Common Share

Basic and Diluted Net Loss per Common Share

The following table shows the computation of basic and diluted net loss per share of common stock for the three months ended March 31, 2023 and 2022:

	2023			2022
	For the Three Months Ended
	March 31,
	2023			2022

Numerator – net loss	$	(6,643,000	)	$	(2,438,000	)
Denominator – weighted average
number of shares outstanding, basic and diluted		30,289,730			27,226,819
Net loss per share, basic and diluted	$	(0.22	)	$	(0.09	)

Income Taxes

Income Taxes

As of March 31, 2023 and December 31, 2022, there were no unrecognized tax benefits included in the condensed consolidated balance sheets that would, if recognized, affect the effective tax rate.

Investment in Eton Pharmaceuticals, Inc

Investment in Eton Pharmaceuticals, Inc.

Investment in Melt Pharmaceuticals, Inc. – Related Party

Investment in Melt Pharmaceuticals, Inc. – Related Party

The following table summarizes the Company’s investments in Melt as of March 31, 2023:

SCHEDULE OF INVESTMENT

	Cost		Share of Equity			Paid-in-Kind		In-substance			Net
	Basis		Method Losses			Interest		Capital Contributions			Carrying value
Common stock	$	5,810,000	$	(5,810,000	)	$	-	$			$	-
Loan		13,500,000		(13,500,000	)		3,001,000		(3,001,000	)		-
	$	19,310,000	$	(19,310,000	)	$	3,001,000	$	(3,001,000	)	$	-

See Note 5 for more information and related party disclosure regarding Melt.

Investment in Surface Ophthalmics, Inc. – Related Party

Investment in Surface Ophthalmics, Inc. – Related Party

The following table summarizes the Company’s investment in Surface as of March 31, 2023:

SCHEDULE OF INVESTMENT

	Cost		Share of Equity			Net
	Basis		Method Losses			Carrying value
Common stock	$	5,320,000	$	(5,320,000	)	$	-

See Note 6 for more information and related party disclosure regarding Surface.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

SCHEDULE OF BASIC AND DILUTED EARNINGS PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Numerator – net loss	$ (6,643,000)	$ (2,438,000)
number of shares outstanding, basic and diluted	30,289,730	27,226,819
Net loss per share, basic and diluted	$ (0.22)	$ (0.09)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-7

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482662/260-10-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-10

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/exampleRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 52
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-52

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-7

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details