Eflapegrastim

First Quarter Total Net Product Sales of $26.0 Million, In Line with 2025 Outlook Provides Update on Long-Term Business Strategy Designed to Create Sustainable Near-Term Growth and Increased Long-Term Value LAKE FOREST, Ill., May 12, 2025 (GLOBE NEWSWIRE) -- Assertio Holdings, Inc. (“Assertio” or the “Company”) (Nasdaq: ASRT), a pharmaceutical company with comprehensive commercial capabilities offering differentiated products designed to address patients’ needs, today reported financial results for the first quarter ended March 31, 2025. Said Brendan O’Grady, Chief Executive Officer, “We have achieved substantial progress to date as we implement our business strategy designed to create sustainable near-term growth and increased long-term value as a specialty pharmaceutical company focused on commercial assets. As part of this strategy, Assertio’s 2025 transformation priorities include reducing legal exposure, simplifying our corporate structure and processes, prioritizing investment in growth assets, divesting declining or non-core assets, and using the strength of our balance sheet to close a strategic transaction.” Executing on these priorities through the first quarter, Assertio has: Settled multiple prior legal matters, including the previously disclosed DOJ False Claims Act qui tam lawsuit, the last remaining Glumetza antitrust action, Spectrum’s legacy Luo securities class action (subject to court approval), and obtained a dismissal of the Company’s Edwards securities class action, reducing future legal costs and further focusing resources on the business. Begun simplifying its corporate holdings structure by transferring all of its interests in its subsidiary Assertio Therapeutics to an established purchaser of legacy litigation matters resulting in Assertio Therapeutics being owned by the purchaser’s related company, ATIH Industries, LLC. At the closing of this transaction, Assertio Therapeutics held approximately $8.2 million in cash, insurance, a single-digit royalty on Indocin, and certain legal liabilities, including those related to opioid litigation. As a result of this transaction, neither Assertio Holdings nor any of its current subsidiaries are defendants in any opioid-related litigation. Reallocated corporate resources to focus on growth assets, namely Rolvedon and Sympazan. Advanced its strategic activities to bring new growth drivers into Assertio’s commercial platform, while also progressing the process to divest non-core assets. Net Sales and Key Asset Performance Further, O’Grady said “Looking at the first quarter, net sales came in at $26.0 million, and we are tracking to our full year net product sales and adjusted EBITDA outlook. Rolvedon net sales still finished above our internal expectation, despite Q4 stocking to support customer and volume expansion in Q1, which reflects continued strong demand and commercial execution. As a result, we expect Rolvedon net sales to continue to increase throughout the year. In addition, our revised Sympazan promotional strategy is proving effective, with total Sympazan prescriptions up 6.5% year-over-year in the first quarter. Also, Indocin remained stable in the first quarter, achieving our net sales and contribution expectations.” Financial Highlights (unaudited): First quarter results included the following as compared to the prior year first quarter: Rolvedon net product sales were $13.1 million, a decrease from $14.5 million in the prior year quarter, driven by lower pricing, partially offset by higher volume. Indocin net product sales were $5.5 million, a decrease from $8.7 million in the prior year quarter, due to the previously announced generic competition affecting both volume and pricing. Gross margin2 increased to 70% compared to 65% in the prior year quarter, primarily driven by a reduction in inventory write-downs and the completion of Rolvedon inventory step-up amortization, partially offset by the impact of higher Rolvedon volumes on cost of sales. SG&A expenses were $22.0 million, an increase from $18.5 million in the prior year quarter, primarily driven by $4.7 million of net higher legal charges and settlements, partially offset by a $1.1 million reduction in personnel costs. Adjusted EBITDA3 was $0.2 million, a decrease from $7.4 million in the prior year quarter, primarily reflecting lower net product sales and the impact of higher Rolvedon volumes on cost of sales. 1 Non-GAAP measures are reconciled to the corresponding GAAP measures in the schedules attached.2 Gross margin represents the ratio of net product sales less cost of sales to net product sales.3 See “Non-GAAP Financial Measures” below for information about reconciling our Adjusted EBITDA guidance to Net Loss. Balance Sheet and Cash Flow As of March 31, 2025, cash, cash equivalents and short-term investments totaled $87.3 million, compared to $100.1 million as of December 31, 2024. Cash flow from operations during the quarter was impacted by the timing of approximately $12.0 million of accounts receivable collected in April 2025. Debt as of March 31, 2025 was $40.0 million, comprised of the Company’s 6.5% convertible notes, with no maturities until September 2027. Conference Call and Investor Presentation Information Assertio’s management will host a conference call today to discuss its first quarter 2025 financial results and provide additional details of its 2025 corporate strategy. To access the live webcast, the recorded conference call replay, and other materials, please visit Assertio’s investor relations website at http://investor.assertiotx.com/overview/default.aspx. Please connect at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. The replay will be available approximately two hours after the call on Assertio’s investor website. About Assertio Assertio is a pharmaceutical company with comprehensive commercial capabilities offering differentiated products designed to address patients’ needs. Our focus is on supporting patients by marketing products in oncology, neurology, and pain management. To learn more about Assertio, visit www.assertiotx.com. Investor Contact Matt Kreps, Managing DirectorDarrow AssociatesM: 214-597-8200mkreps@darrowir.com Forward Looking Statements The statements in this communication include forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology such as “anticipate,” “approximate”, “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “opportunity,” “plan,” “potential,” “project,” “prospective,” “pursue,” “seek,” “should,” “strategy,” “target,” “will,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements, including: Assertio’s ability to grow sales and the commercial success and market acceptance of Rolvedon and Assertio’s other products, including the coverage of Assertio’s products by payors and pharmacy benefit managers; Assertio’s ability to successfully develop and execute its sales, marketing and promotion strategies using its sales force and omni-channel promotion model capabilities; the impact on sales and profits from the entry and sales of generics of Assertio’s products and/or other products competitive with any of Assertio’s products, including, but not limited to, biosimilars and indomethacin suppositories compounded by hospitals and other institutions and a 503B compounder which Assertio believes is violating certain provisions of the Federal Food, Drug and Cosmetic Act; the timing and impact of additional generic approvals and uncertainty around the recent approvals and launches of generic Indocin products, which are not patent protected and now face generic competition; Assertio’s ability to successfully identify and execute business development and other strategic transactions; Assertio’s ability to achieve the expected financial performance from products we acquire as well as delays, challenges and expenses, and unexpected liabilities and costs associated with integrating and operating newly-acquired products; expectations regarding changes in product volume and mix and the impact those changes may have on Assertio’s operating results; expectations regarding the recoverability of long-lived assets; expected industry trends, including pricing pressures and managed healthcare practices; Assertio’s ability to attract and retain executive leadership and key employees; the ability of Assertio’s third-party manufacturers to manufacture adequate quantities of commercially salable inventory and active pharmaceutical ingredients for each of Assertio’s products on commercially reasonable terms and in compliance with their contractual obligations to Assertio, and Assertio’s ability to maintain its supply chain which relies on single-source suppliers; the outcome of, and Assertio’s intentions with respect to, any litigation or government investigations, including pending and potential future shareholder litigation relating to the Spectrum Merger and/or the recent approval and launch of generic indomethacin suppositories, opioid-related government investigations and opioid-related litigation, Spectrum’s legacy shareholder and other litigation, and other disputes and litigation, including Assertio’s antitrust and unsealed qui tam litigation for which definitive settlements have now been reached; the timing, cost and results of Assertio’s clinical studies and other research and development efforts, including the extent to which data from the Rolvedon same-day dosing trial, which was completed in the fourth quarter of 2024, may support Assertio’s ongoing commercialization efforts; Assertio’s compliance or non-compliance with, or being subject to, legal and regulatory requirements related to the development or promotion of pharmaceutical products in the U.S., the extent to which the current U.S. federal administration may impose or seek to impose leadership, rule and/or policy changes impacting Assertio’s business, as well as legal challenges and uncertainty around the funding, functioning, regulatory and policy priorities of U.S. federal regulatory agencies; Assertio’s ability to obtain and maintain intellectual property protection for its products and operate its business without infringing the intellectual property rights of others; variations in revenues obtained from commercialization agreements and the accounting treatment with respect thereto; Assertio’s common stock regaining and maintaining compliance with The Nasdaq Capital Market’s minimum closing bid requirement of at least $1.00 per share in light of the deficiency notification received on January 22, 2025; and the impacts of potential changes to U.S. and international trade policies, especially in light of the tariffs recently imposed by the new U.S. federal administration and tariffs and other retaliatory actions taken by other countries, which may be followed by further changes to existing trade agreements and the imposition of further tariffs, including tariffs on imported pharmaceuticals into the U.S. For a discussion of additional factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the risks described in Assertio’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Many of these risks and uncertainties may be exacerbated by public health emergencies and general macroeconomic conditions. Assertio does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law. Non-GAAP Financial Measures To supplement the Company’s financial results presented on a U.S. generally accepted accounting principles (“GAAP”) basis, the Company has included information about non-GAAP measures of EBITDA, adjusted EBITDA, adjusted earnings, and adjusted earnings per share as useful operating metrics. The Company believes that the presentation of these non-GAAP financial measures, when viewed with results under GAAP and the accompanying reconciliation, provides supplementary information to analysts, investors, lenders, and the Company’s management in assessing the Company’s performance and results from period to period. The Company uses these non-GAAP measures internally to understand, manage and evaluate the Company’s performance, and in part, in the determination of bonuses for executive officers and employees. These non-GAAP financial measures should be considered in addition to, and not a substitute for, or superior to, net income or other financial measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may be calculated differently from, and therefore may not be comparable to, non-GAAP measures used by other companies. Specified Items Non-GAAP measures presented within this release exclude specified items. The Company considers specified items to be significant income/expense items not indicative of current operations. Specified items may include adjustments to interest expense and interest income, income tax expense (benefit), depreciation expense, amortization expense, sales reserves adjustments for products the Company is no longer selling, stock-based compensation expense, fair value adjustments to contingent consideration or derivative liability, expenses recognized for legal settlements, net of any insurance proceeds, restructuring charges, amortization of fair value inventory step-up as a result of purchase accounting, transaction-related costs, gains, losses or impairments from adjustments to long-lived assets and assets not part of current operations, changes in valuation allowances on deferred tax assets, and gains or losses resulting from debt refinancing or extinguishment. Revisions to Specified Items Beginning with the first quarter of 2025, adjusted EBITDA excludes legal settlement costs incurred during the period, as these charges relate to non-recurring and non-operational matters. Management believes that excluding such items provides investors with a clearer understanding of the Company’s underlying operating performance by removing the impact of items that are not indicative of continuing operations. Prior period amounts of Adjusted EBITDA have been recast to conform to this presentation. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(in thousands, except per share amounts)(unaudited) CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share data) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) RECONCILIATION OF GAAP NET LOSS TO NON-GAAP EBITDA and ADJUSTED EBITDA (in thousands)(unaudited) (1) Legal settlement in principle, net of insurance proceeds represents the net impact of the Luo securities class action.(2) Restructuring costs represent non-recurring costs associated with the Company’s announced restructuring plans.(3) Other for the three months ended March 31, 2025 and 2024, represents the following adjustments (in thousands): RECONCILIATION OF GAAP NET LOSS and NET LOSS PER SHARE TO NON-GAAP ADJUSTED EARNINGS and ADJUSTED EARNINGS PER SHARE (1)(in thousands, except per share amounts)(unaudited) (1) Certain adjustments included here are the same as those reflected in the Company’s reconciliation of GAAP net loss to non-GAAP adjusted EBITDA and therefore should be read in conjunction with that reconciliation and respective footnotes. (2) The Company uses the if-converted method with respect to its convertible debt to compute GAAP and Non-GAAP diluted earnings per share when the effect is dilutive. Under the if-converted method, the Company assumes the 2027 Convertible Notes were converted at the beginning of each period presented and outstanding. As a result, interest expense, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net income used in the diluted earnings per share calculation.For the three months ended March 31, 2025, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in either the computation of GAAP net loss and diluted net loss per share or non-GAAP adjusted loss and adjusted loss per share, because to do so would be anti-dilutive. For the three months ended March 31, 2024, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in the computation of GAAP net loss and diluted net loss per share, and the potentially dilutive convertible debt under the if-converted method were not included in non-GAAP adjusted earnings and adjusted earnings per share, because to do so would be anti-dilutive. However, the potentially dilutive stock-based awards under the treasury-stock method were included in the computation of non-GAAP adjusted earnings and adjusted earnings per share because the effect was dilutive. (3) Represents the Company’s income tax expense adjustment from the tax effect of pre-tax adjustments excluded from adjusted earnings. The tax effect of pre-tax adjustments excluded from adjusted earnings is computed at the blended federal and state statutory rate of 25%.

Fourth Quarter Net Product Sales $29.6 Million, Cash Flow from Operations of $11.5 Million Full Year Net Product Sales $120.8 Million, Rolvedon Sales Exceed $60.0 Million Full Year Cash Flow from Operations of $26.4 Million, Cash and Investments Increases to $100.1 Million LAKE FOREST, Ill., March 12, 2025 (GLOBE NEWSWIRE) -- Assertio Holdings, Inc. (“Assertio” or the “Company”) (Nasdaq: ASRT) today reported financial results for the fourth quarter and full year ended December 31, 2024. Said Brendan O’Grady, Chief Executive Officer, “In line with our strategy for Assertio’s long-term growth, 2024 was a year of stabilization as we transitioned to Rolvedon as our primary asset. We enhanced our leadership team and board with additional expertise in legal, commercial, and strategy areas, optimized our cost structure, and strengthened our balance sheet with over $26 million in cash flow generated by the performance of our assets. “We expect 2025 will be a transformational year focused on initiatives designed to drive revenue growth in Rolvedon and Sympazan by investing to unlock new opportunities, continuing to manage our legal exposure and associated costs, while simplifying our structure. “We are also actively pursuing our acquisition strategy, seeking to deploy our balance sheet into appropriate commercial assets that fit our model, enhance our scale and better position ourselves for near-term growth. We remain diligent in these efforts with regard to finding the proper fit and pricing of assets that can deliver results within our targeted metrics as we work to build on the commercial platform at Assertio.” Financial Highlights (unaudited): Three Months Ended Twelve Months Ended (in millions, except per share amounts)December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Net Product Sales (GAAP)$ 29.6 $ 28.7 $ 32.5 $ 120.8 $ 149.5 Net Loss (GAAP)$ (10.5) $ (2.9) $ (57.4) $ (21.6) $ (331.9)Loss Per Share (GAAP)$ (0.11) $ (0.03) $ (0.61) $ (0.23) $ (4.67)Adjusted EBITDA (Non-GAAP)1$ (0.5) $ 5.3 $ 4.5 $ 17.1 $ 67.7 Adjusted Earnings Per Share (Non-GAAP)1$ (0.03) $ 0.03 $ 0.11 $ 0.06 $ 0.55 Fourth quarter results included the following highlights (our discussion below focuses on a comparison of fourth quarter 2024 to third quarter 2024 given the acquisition of Spectrum and the generic competition of Indocin introduced in 2023): Net product sales were $29.6 million in the fourth quarter, increased from $28.7 million in the third quarter. Rolvedon net product sales were $15.4 million in the fourth quarter, a $0.4 million increase from the prior quarter, driven by higher volume, partially offset by changes in pricing.Indocin net product sales in the fourth quarter were $5.5 million, compared to $5.7 million in the prior quarter, reflecting pricing changes following a generic entrant late in 2023. Gross margin2 was 61% in the fourth quarter, compared to 74% in the third quarter, reflecting the impact of $2.9 million in higher inventory write downs, primarily for Indocin. Excluding these charges, gross margin was 71%, with the change driven by product mix. SG&A expense in the fourth quarter was $21.4 million, compared to $16.7 million in the third quarter, primarily reflecting a net $5.4 million increase in litigation contingencies, which was partially offset by lower general operating expenses.Adjusted EBITDA3 loss was $0.5 million, compared to adjusted EBITDA of $5.3 million in the prior quarter, primarily due to the effect of inventory write downs and litigation contingency charges noted above.Fourth quarter 2024 included a charge of $5.2 million for loss on impairment of Otrexup intangible assets. Balance Sheet and Cash Flows Assertio generated $11.5 million in cash flow from operations in the fourth quarter, and $26.4 million in cash flow from operations for the full year 2024.At December 31, 2024, cash, cash equivalents and short-term investments totaled $100.1 million.Debt at December 31, 2024 was $40.0 million, comprised of the Company’s 6.5% convertible notes, with no maturities until September 2027. 2025 Full Year Financial Guidance Assertio announced its initial 2025 operating guidance as follows: Net Product Sales (GAAP)$108.0 Million to $123.0 MillionAdjusted EBITDA (Non-GAAP)$10.0 Million to $19.0 Million Conference Call and Investor Presentation Information Assertio’s management will host a conference call to discuss its fourth quarter and full year 2024 financial results today: Date:Wednesday, March 12, 2025Time:4:30 p.m. Eastern TimeWebcast (live and archive):http://investor.assertiotx.com/overview/default.aspx (Events & Webcasts, Investor Page)Dial-in numbers:1-646-307-1963, Conference ID 3278948 To access the live webcast, the recorded conference call replay, and other materials, please visit Assertio’s investor relations website at http://investor.assertiotx.com/overview/default.aspx. Please connect at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. The replay will be available approximately two hours after the call on Assertio’s investor website. ___________________________________ 1 Non-GAAP measures are reconciled to the corresponding GAAP measures in the schedules attached. 2 Gross margin represents the ratio of net product sales less cost of sales to net product sales. 3 See “Non-GAAP Financial Measures” below for information about reconciling our Adjusted EBITDA to Net Loss. About Assertio Assertio is a pharmaceutical company with comprehensive commercial capabilities offering differentiated products designed to address patients’ needs. Our focus is on supporting patients by marketing products in oncology, neurology, and pain management. To learn more about Assertio, visit www.assertiotx.com. Investor Contact Matt Kreps, Managing DirectorDarrow AssociatesM: 214-597-8200mkreps@darrowir.com Forward Looking Statements The statements in this communication include forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology such as “anticipate,” “approximate”, “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “opportunity,” “plan,” “potential,” “project,” “prospective,” “pursue,” “seek,” “should,” “strategy,” “target,” “will,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements, including: Assertio’s ability to grow sales and the commercial success and market acceptance of Rolvedon and Assertio’s other products, including the coverage of our products by payors and pharmacy benefit managers; Assertio’s ability to successfully develop and execute its sales, marketing and promotion strategies using its sales force and omni-channel promotion model capabilities; the impact on sales and profits from the entry and sales of generics of Assertio’s products and/or other products competitive with any of Assertio’s products, including biosimilars and indomethacin suppositories compounded by hospitals and other institutions including a 503B compounder which we believe is violating certain provisions of the Federal Food, Drug and Cosmetic Act; the timing and impact of additional generic approvals and uncertainty around the recent approvals and launches of generic Indocin products, which are not patent protected and now face generic competition; Assertio’s ability to successfully identify and execute business development and other strategic transactions; risks that any new businesses will not be integrated successfully or that the combined company will not realize estimated cost savings, value of certain tax assets, synergies and growth, or that such benefits may take longer and/or cost more to realize than expected; expectations regarding changes in product volume and mix and the impact those changes may have on Assertio’s operating results; expectations regarding the recovery of long-lived assets; expected industry trends, including pricing pressures and managed healthcare practices; Assertio’s ability to attract and retain executive leadership and key employees; the ability of Assertio’s third-party manufacturers to manufacture adequate quantities of commercially salable inventory and active pharmaceutical ingredients for each of Assertio’s products on commercially reasonable terms and in compliance with their contractual obligations to Assertio, and Assertio’s ability to maintain its supply chain which relies on single-source suppliers; the outcome of, and Assertio’s intentions with respect to, any litigation or government investigations, including pending and potential future shareholder litigation relating to the Spectrum Merger and/or the recent approval and launch of generic indomethacin suppositories, opioid-related government investigations and opioid-related litigation, Spectrum’s legacy shareholder and other litigation, and other disputes and litigation, including Assertio’s antitrust and unsealed qui tam litigation for which settlements in principle were reached in the third and fourth quarters, respectively, of 2024, as well as the costs and expenses associated therewith; Assertio’s financial cost and results of its clinical studies and other research and development efforts, including the extent to which data from the Rolvedon same-day dosing trial, which was completed in the fourth quarter of 2024, may support ongoing commercialization efforts; Assertio’s compliance or non-compliance with, or being subject to, legal and regulatory requirements related to the development or promotion of pharmaceutical products in the United States; the extent to which the current U.S. federal administration may impose or seek to impose leadership, rule and/or policy changes impacting Assertio’s business, as well as legal challenges and uncertainty around the funding, functioning, regulatory and policy priorities of U.S. federal regulatory agencies; variations in revenues obtained from commercialization agreements and the accounting treatment with respect thereto; Assertio’s common stock regaining and maintaining compliance with The Nasdaq Capital Market’s minimum closing bid requirement of at least $1.00 per share, in light of the deficiency notification received on January 22, 2025; Assertio’s ability to obtain and maintain intellectual property protection for its products and operate its business without infringing the intellectual property rights of others; and the impacts of potential changes to existing trade agreements and new tariffs, including tariffs on imported pharmaceuticals into the U.S. For a discussion of additional factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the risks described in Assertio’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Many of these risks and uncertainties may be exacerbated by public health emergencies and general macroeconomic conditions. Assertio does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law. Non-GAAP Financial Measures To supplement the Company’s financial results presented on a U.S. generally accepted accounting principles (“GAAP”) basis, the Company has included information about non-GAAP measures of EBITDA, adjusted EBITDA, adjusted earnings, and adjusted earnings per share as useful operating metrics. The Company believes that the presentation of these non-GAAP financial measures, when viewed with results under GAAP and the accompanying reconciliation, provides supplementary information to analysts, investors, lenders, and the Company’s management in assessing the Company’s performance and results from period to period. The Company uses these non-GAAP measures internally to understand, manage and evaluate the Company’s performance, and in part, in the determination of bonuses for executive officers and employees. These non-GAAP financial measures should be considered in addition to, and not a substitute for, or superior to, net income or other financial measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may be calculated differently from, and therefore may not be comparable to, non-GAAP measures used by other companies. This release also includes estimated full-year non-GAAP adjusted EBITDA information, which the Company believes enables investors to better understand the anticipated performance of the business, but should be considered a supplement to, and not as a substitute for or superior to, financial measures calculated in accordance with GAAP. No reconciliation of estimated non-GAAP adjusted EBITDA to estimated net income is provided in this release because some of the information necessary for estimated net income such as income taxes, fair value change in contingent consideration, and stock-based compensation is not yet ascertainable or accessible and the Company is unable to quantify these amounts that would be required to be included in estimated net income without unreasonable efforts. Specified Items Non-GAAP measures presented within this release exclude specified items. The Company considers specified items to be significant income/expense items not indicative of current operations. Specified items may include adjustments to interest expense and interest income, income tax expense (benefit), depreciation expense, amortization expense, sales reserves adjustments for products the Company is no longer selling, stock-based compensation expense, fair value adjustments to contingent consideration or derivative liability, restructuring charges, amortization of fair value inventory step-up as a result of purchase accounting, transaction-related costs, gains, losses or impairments from adjustments to long-lived assets and assets not part of current operations, changes in valuation allowances on deferred tax assets, and gains or losses resulting from debt refinancing or extinguishment. ASSERTIO HOLDINGS, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(in thousands, except per share amounts)(unaudited) Three Months Ended Year Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Revenues: Product sales, net$29,587 $28,705 $32,462 $120,849 $149,451 Royalties and milestones 495 499 523 2,012 2,433 Other revenue 2,100 — — 2,100 185 Total revenues 32,182 29,204 32,985 124,961 152,069 Costs and expenses: Cost of sales 11,611 7,550 9,721 39,227 27,020 Research and development expenses 1,286 1,005 1,024 3,822 2,843 Selling, general and administrative expenses 21,416 16,726 23,958 75,051 78,638 Change in fair value of contingent consideration (544) 300 (17,414) (244) (25,538)Amortization of intangible assets 6,671 6,671 4,775 25,644 27,527 Loss on impairment of intangible assets 5,217 — 40,808 5,217 279,639 Restructuring charges — — 2,442 720 5,476 Total costs and expenses 45,657 32,252 65,314 149,437 395,605 Loss from operations (13,475) (3,048) (32,329) (24,476) (243,536)Other income (expense): Debt related expenses — — — — (9,918)Interest expense (763) (761) (755) (3,039) (3,380)Interest income 780 887 690 3,221 2,403 Other gain, net 2,709 45 489 2,765 377 Total other income (expense) 2,726 171 424 2,947 (10,518)Net loss before income taxes (10,749) (2,877) (31,905) (21,529) (254,054)Income tax benefit (expense) 273 (44) (25,479) (52) (77,888)Net loss and comprehensive loss$(10,476) $(2,921) $(57,384) $(21,581) $(331,942) Basic and diluted net loss per share$(0.11) $(0.03) $(0.61) $(0.23) $(4.67)Shares used in computing basic and diluted net loss per share 95,509 95,352 94,669 95,271 71,031 ASSERTIO HOLDINGS, INC.CONSOLIDATED BALANCE SHEETS(in thousands, except share data)(unaudited) December 31, 2024 2023ASSETS Current assets: Cash and cash equivalents$50,588 $73,441 Short-term investments 49,466 — Accounts receivable, net 54,120 47,663 Inventories, net 38,308 37,686 Prepaid and other current assets 10,067 12,272 Total current assets 202,549 171,062 Property and equipment, net 586 770 Intangible assets, net 80,471 111,332 Other long-term assets 1,126 3,255 Total assets$284,732 $286,419 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable$14,736 $13,439 Accrued rebates, returns and discounts 76,304 58,137 Accrued liabilities 18,847 18,213 Contingent consideration, current portion 726 2,700 Other current liabilities 4,075 954 Total current liabilities 114,688 93,443 Long-term debt 38,813 38,514 Other long-term liabilities 10,150 16,459 Total liabilities 163,651 148,416 Commitments and contingencies Shareholders’ equity: Common stock, $0.0001 par value, 200,000,000 shares authorized; 95,536,990 and 94,668,523 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively 9 9 Additional paid-in capital 794,196 789,537 Accumulated deficit (673,124) (651,543)Total shareholders’ equity 121,081 138,003 Total liabilities and shareholders' equity$284,732 $286,419 ASSERTIO HOLDINGS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Year Ended December 31, 2024 2023Operating Activities Net loss$(21,581) $(331,942)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 25,829 28,229 Amortization of debt issuance costs and Royalty Rights 439 455 Accretion of interest income from short-term investments (542) — Loss on impairment of intangible assets 5,217 279,639 Recurring fair value measurements of assets and liabilities (397) (25,482)Payment of contingent consideration (1,730) — Debt-related expenses — 9,918 Stock-based compensation 5,009 9,158 Provisions for inventory 8,960 3,288 Deferred income taxes — 76,201 Changes in assets and liabilities, net of acquisition: Accounts receivable (6,457) 48,669 Inventories (9,583) (4,973)Prepaid and other assets 4,334 (1,169)Accounts payable and other accrued liabilities (1,256) (29,348)Accrued rebates, returns and discounts 18,166 (12,313)Interest payable — (726)Net cash provided by operating activities 26,408 49,604 Investing Activities Purchases of short-term investments (98,605) — Proceeds from maturities of short-term investments 49,694 — Proceeds from the sale of investments — 2,194 Net cash acquired in Spectrum Merger — 1,950 Purchases of property and equipment — (628)Purchase of Sympazan — (419)Net cash (used in) provided by investing activities (48,911) 3,097 Financing Activities Payments related to the vesting and settlement of equity awards, net (350) (7,898)Payment of contingent consideration — (24,194)Payments in connection with 2027 Convertible Notes — (10,500)Payment of direct transaction costs related to convertible debt inducement — (1,119)Payment of Royalty Rights — (459)Other financing activities — (31)Net cash used in financing activities (350) (44,201)Net (decrease) increase in cash and cash equivalents (22,853) 8,500 Cash and cash equivalents at beginning of year 73,441 64,941 Cash and cash equivalents at end of year$50,588 $73,441 Supplemental Disclosure of Cash Flow Information Net cash paid for income taxes$1,594 $4,031 Cash paid for interest$2,600 $3,651 RECONCILIATION OF GAAP NET LOSS TO NON-GAAP EBITDA and ADJUSTED EBITDA(in thousands)(unaudited) Three Months Ended Twelve months ended December 31,2024 September 30,2024 December 31,2023 December 31,2024 December 31,2023 Financial StatementClassificationGAAP Net Loss$(10,476) $(2,921) $(57,384) $(21,581) $(331,942) Interest expense 763 761 755 3,039 3,380 Interest expenseIncome tax (benefit) expense (273) 44 25,479 52 77,888 Income tax expenseDepreciation expense 38 40 132 184 702 Selling, general and administrative expensesAmortization of intangible assets 6,671 6,671 4,775 25,644 27,527 Amortization of intangible assetsEBITDA (Non-GAAP) (3,277) $4,595 (26,243) 7,338 (222,445) Adjustments: Legacy product reserves (1) (2,100) — — (2,100) (185) Other revenueStock-based compensation 1,098 1,296 2,642 5,009 9,158 Selling, general and administrative expensesChange in fair value of contingent consideration (2) (544) 300 (17,414) (244) (25,538) Change in fair value of contingent considerationDebt-related expenses (3) — — — — 9,918 Debt-related expensesTransaction-related expenses (4) — — 361 — 8,900 Selling, general and administrative expensesLoss on impairment of intangible assets (5) 5,217 — 40,808 5,217 279,639 Loss on impairment of intangible assetsRestructuring costs (6) — — 2,442 720 5,476 Restructuring chargesOther (7) (920) (887) 1,855 1,203 2,820 MultipleAdjusted EBITDA (Non-GAAP)$(526) $5,304 $4,451 $17,143 $67,743 (1)Represents removal of the impact of revenue adjustment to reserves for product sales allowances (gross-to-net-sales allowances) estimates related to previously divested products.(2)The fair value of the contingent consideration is remeasured each reporting period, with changes in the fair value resulting from changes in the underlying inputs being recognized as a benefit or expense in operating expenses until the contingent consideration arrangement is settled.(3)Debt-related expenses consist of an induced conversion expense of approximately $8.8 million and direct transaction costs of approximately $1.1 million incurred as a result of the privately negotiated exchange of $30.0 million principal amount of the Company’s 6.5% Convertible Senior Notes due 2027 in the first quarter of 2023.(4)Represents transaction-related expenses associated with the acquisition of Spectrum, which closed effective July 31, 2023.(5)Represents the loss recognized in the period for the impairment of intangible assets.(6)Restructuring charges represent non-recurring costs associated with the Company’s announced restructuring plan.(7)Other for the three and twelve months ended December 31, 2024 and 2023 represent the following adjustments (in thousands): Three Months Ended Twelve months ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Financial Statement ClassificationAmortization of inventory step-up $— $— $3,001 $4,564 $5,167 Cost of salesInterest income on short-term investments (780) (887) (690) (3,221) (2,403) Interest incomeDerivative fair value adjustment (140) — (456) (140) 56 Other income, netTotal Other $(920) $(887) $1,855 $1,203 $2,820 RECONCILIATION OF GAAP NET LOSS and NET LOSS PER SHARE TONON-GAAP ADJUSTED EARNINGS and ADJUSTED EARNINGS PER SHARE (1)(in thousands, except per share amounts)(unaudited) Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Amount Diluted EPS (2) Amount Diluted EPS (2) Amount Diluted EPS (2)Net loss per share (GAAP)$(10,476) $(0.11) $(2,921) $(0.03) $(57,384) $(0.61)Add: Convertible debt interest expense and other income statement impacts, net of tax (2) — — 566 Adjustments Amortization of intangible assets 6,671 6,671 4,775 Legacy products revenue reserves (2,100) — — Stock-based compensation 1,098 1,296 2,642 Change in fair value of contingent consideration (544) 300 (17,414) Contingent consideration cash payable (3) (1,099) (253) (2,170) Transaction-related expenses — — 361 Loss on impairment of intangible assets 5,217 — 40,808 Restructuring charges — — 2,442 Other (920) (887) 1,855 Increase of deferred tax asset valuation allowance (4) — — 33,165 Income taxes (expense) benefit, as adjusted (5) (776) (1,782) 1,877 Adjusted earnings (Non-GAAP)$(2,929) $(0.03) $2,424 $0.03 $11,523 $0.11 Diluted shares used in calculation (GAAP) (2) 95,509 95,352 94,669 Add: Dilutive effect of stock-based awards and equivalents (2) — 933 325 Add: Dilutive effect of 2027 Convertible Notes (2) — — 9,768 Diluted shares used in calculation (Non-GAAP) (2) 95,509 96,285 104,762 (1)Certain adjustments included here are the same as those reflected in the Company’s reconciliation of GAAP net loss to non-GAAP adjusted EBITDA and therefore should be read in conjunction with that reconciliation and respective footnotes. (2)The Company uses the if-converted method with respect to its convertible debt to compute GAAP and Non-GAAP diluted earnings per share when the effect is dilutive. Under the if-converted method, the Company assumes the 2027 Convertible Notes were converted at the beginning of each period presented and outstanding. As a result, interest expense, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net income used in the diluted earnings per share calculation. For the three months ended December 31, 2024, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in either the computation of GAAP net loss and diluted net loss per share or non-GAAP adjusted earnings and adjusted earnings per share because to do so would be anti-dilutive. For the three months ended September 30, 2024, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in the computation of GAAP net loss and diluted net loss per share, and the potentially dilutive convertible debt under the if-converted method were not included in non-GAAP adjusted earnings and adjusted earnings per share, because to do so would be anti-dilutive. For the three months ended December 31, 2023, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in the computation of GAAP net loss and diluted net loss per share, because to do so would be anti-dilutive. However, the Company’s potentially dilutive convertible debt under the if-converted method and the potentially dilutive stock-based awards under the treasury-stock method were included in the computation of non-GAAP adjusted earnings and adjusted earnings per share because their effect was dilutive. (3)Represents the accrued cash payable of the INDOCIN contingent consideration for the respective period based on 20% royalty for annual INDOCIN net sales over $20.0 million. (4)For the three months ended December 31, 2023, represents the amount of income tax expense related to the recognition of a full valuation allowance against deferred tax assets. (5)Represents the Company’s income tax (expense) benefit adjustment from the tax effect of pre-tax adjustments excluded from adjusted earnings. The tax effect of pre-tax adjustments excluded from adjusted earnings is computed at the blended federal and state statutory rate of 25%. RECONCILIATION OF GAAP NET LOSS and NET LOSS PER SHARE TONON-GAAP ADJUSTED EARNINGS and ADJUSTED EARNINGS PER SHARE (1)(in thousands, except per share amounts)(unaudited) Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023 Amount Diluted EPS (2) Amount Diluted EPS (2)Net loss (GAAP) (2)$(21,581) $(0.23) $(331,942) $(4.67)Add: Convertible debt interest expense and other income statement impacts, net of tax (2) — 2,535 Adjustments Amortization of intangible assets 25,644 27,527 Legacy products revenue reserves (2,100) (185) Stock-based compensation 5,009 9,158 Debt-related expenses, net — 9,639 Change in fair value of contingent consideration (244) (25,538) Contingent consideration cash payable (3) (1,352) (13,443) Transaction-related expenses — 8,900 Loss on impairment of intangible assets 5,217 279,639 Restructuring charges 720 5,476 Other 1,203 2,820 Increase in deferred tax asset valuation allowance (4) — 76,200 Income taxes expense, as adjusted (5) (7,220) (3,679) Adjusted earnings (Non-GAAP)$5,296 $0.06 $47,107 $0.55 Diluted shares used in calculation (GAAP) (2) 95,271 71,031 Add: Dilutive effect of stock-based awards and equivalents (2) 516 3,054 Add: Dilutive effect of 2027 Convertible Notes (2) — 10,932 Diluted shares used in calculation (Non-GAAP) (2) 95,787 85,017 (1)Certain adjustments included here are the same as those reflected in the Company’s reconciliation of GAAP net loss to non-GAAP adjusted EBITDA and therefore should be read in conjunction with that reconciliation and respective footnotes. (2)The Company uses the if-converted method with respect to its convertible debt to compute GAAP and non-GAAP diluted earnings per share when the effect is dilutive. Under the if-converted method, the Company assumes the 2027 Convertible Notes were converted at the beginning of each period presented and outstanding. As a result, interest expense, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net income used in the diluted earnings per share calculation. For the twelve months ended December 31, 2024, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in the computation of GAAP net loss and diluted net loss per share, and the Company’s potentially dilutive convertible debt under the if-converted method were not included in the computation of non-GAAP net loss and diluted net loss per share because to do so would be anti-dilutive. However, the Company’s potentially dilutive stock-based awards under the treasury-stock method were included in the computation of non-GAAP adjusted earnings and adjusted earnings per share because their effect was dilutive. For the twelve months ended December 31, 2023, the Company’s potentially dilutive convertible debt under the if-converted method and stock-based awards under the treasury-stock method were not included in the computation of GAAP net loss and diluted net loss per share, because to do so would be anti-dilutive. However, the Company’s potentially dilutive convertible debt under the if-converted method and the potentially dilutive stock-based awards under the treasury-stock method were included in the computation of non-GAAP adjusted earnings and adjusted earnings per share because their effect was dilutive. (3)Represents the accrued cash payable, if any, of the INDOCIN contingent consideration for the respective period based on 20% royalty for annual INDOCIN net sales over $20.0 million. (4)For the twelve months ended December 31, 2023, represents the amount of income tax expense related to the recognition of a full valuation allowance against deferred tax assets. (5)Represents the Company’s income tax expense adjustment from the tax effect of pre-tax adjustments excluded from adjusted earnings. The tax effect of pre-tax adjustments excluded from adjusted earnings is computed at the blended federal and state statutory rate of 25%.