0001628280-24-021118 | 10-Q | XBRL Viewer | Aquestive Therapeutics INC

Disaggregation of Revenue

The Company’s revenues were comprised of the following:


	Three Months Ended March 31,
	2024		2023
Manufacture and supply revenue	$	10,518	$	9,762
License and royalty revenue	1,132		919
Co-development and research fees	403		453

Total revenues	$	12,053	$	11,134

The following table provides disaggregated net revenue by geographic area:


	Three Months Ended March 31,
	2024		2023
United States	$	10,427	$	8,165
Ex-United States	1,626		2,969
Total revenues	$	12,053	$	11,134

Trade and Other Receivables, Net

Trade and other receivables, net consist of the following:


	March 31, 2024		December 31, 2023
Trade receivables	$	6,703	$	5,570
Contract and other receivables	1,635		2,915
Less: allowance for doubtful accounts	(14)		(14)

Trade and other receivables, net	$	8,324	$	8,471

Changes in Allowance for Bad Debt

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


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

Allowance for doubtful accounts at end of the period	$	14	$	14

Property and Equipment, Net

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net


	Useful Lives	March 31, 2024		December 31, 2023
Machinery	3-15 years	$	20,248	$	20,248
Furniture and fixtures	3-15 years	769		769
Leasehold improvements	(a)	21,386		21,386
Computer, network equipment and software	3-7 years	2,627		2,627
Construction in progress		2,062		2,033
		47,092		47,063
Less: accumulated depreciation and amortization		(43,046)		(42,884)
Total property and equipment, net		$	4,046	$	4,179

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

Total depreciation, amortization, and impairment related to property and equipment was $168 and $286 for the three months ended March 31, 2024 and 2023, respectively.

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Fair Value Measurement Inputs and Valuation Techniques

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

Valuation Methodology

Significant Unobservable Input

Weighted Average (range, if applicable)

Discount Rate

15%

Royalty Right Agreements

Probability weighted
income approach

Probability of Success

75%

Projected Years of Payments

2025

2033

Schedule of Long-Term Debt Instruments

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


	March 31,		December 31,
	2024		2023
Total outstanding notes	$	45,000	$	45,000
Unamortized discount, including Exit Fee	(16,408)		(17,665)

Notes payable, long-term	28,592		27,335
Finance lease	167		173
Notes payable, net	$	28,759	$	27,508


	March 31,		December 31,
	2024		2023
Royalty obligations	$	56,926	$	56,926
Unamortized discount	(40,807)		(42,165)
Royalty obligations, net	$	16,119	$	14,761

Debt Maturity

Scheduled principal payments on the 13.5% Notes as of March 31, 2024 are as follows:


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

Total	$	45,000

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	$ 1,580	$ 344
Restricted stock units
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	933	25
Stock options
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	647	319
Manufacture and supply
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	70	41
Research and development
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	170	72
Selling, general and administrative
Share-based Compensation expenses [Abstract]
Share-based compensation expenses	$ 1,340	$ 231

Share-Based Compensation - Restricted Stock Unit Awards (Details) - Restricted stock units shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Units
Unvested, at beginning of period (in shares) \| shares	1,948
Granted (in shares) \| shares	1,353
Vested (in shares) \| shares	(565)
Unvested, at end of period (in shares) \| shares	2,736
Vested and expected to vest at end of period (in shares) \| shares	2,488
Weighted Average Grant Date Fair Value
Unvested, at beginning of period (in dollars per share) \| $ / shares	$ 0.97
Granted (in dollars per share) \| $ / shares	5.68
Vested (in dollars per share) \| $ / shares	0.89
Unvested, at end of period (in dollars per share) \| $ / shares	3.32
Vested and expected to vest at end of period (in dollars per share) \| $ / shares	$ 3.28

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

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	The accompanying interim unaudited condensed financial statements were prepared in conformity with U.S. GAAP and with Article 10 of Regulation S-X for interim financial reporting. In compliance with those rules, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2024 (the “2023 Annual Report on Form 10-K”). As included herein, the Condensed Balance Sheet as of December 31, 2023 is derived from the audited consolidated financial statements as of that date. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results of interim periods have been included. The accompanying financial statements reflect certain reclassifications from previously issued financial statements to conform to the current presentation. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited condensed financial statements. Any reference in these notes to applicable guidance refers to the authoritative U.S. GAAP as found in the ASC and ASU of FASB. As of March 31, 2024, the Company dissolved its subsidiaries and no longer prepares its financial statements on a consolidated basis. The dissolution of the subsidiaries did not have a material impact on the Company’s unaudited condensed financial statements as of March 31, 2024 and the audited consolidated financial statements as of December 31, 2023.
Recent Accounting Pronouncements	(A) Recent Accounting Pronouncements As of December 31, 2023, the Company is no longer an “emerging growth company,” but remains a “smaller reporting company”. The Company complies with new or revised accounting standards by the relevant dates on which adoption of such standards is required for smaller reporting companies. From time to time, new accounting pronouncements are issued by the FASB and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recent Accounting Pronouncements Adopted as of March 31, 2024: In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This Accounting Standards Update was issued to address the complexity in accounting for certain financial instruments with characteristics of liabilities and equity. Among other provisions, the amendments in this ASU significantly change the guidance on the issuer’s accounting for convertible instruments and the guidance on the derivative scope exception for contracts in an entity’s own equity such that fewer conversion features will require separate recognition, and fewer freestanding instruments, like warrants, will require liability treatment. More specifically, the ASU reduces the number of models that may be used to account for convertible instruments from five to three, amends diluted EPS calculations for convertible instruments, modifies the requirements for a contract that may be settled in an entity’s own shares to be classified in equity and requires expanded disclosures intended to increase transparency. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This Accounting Standards Update was issued to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for such equity securities. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. Recent Accounting Pronouncements Not Adopted as of March 31, 2024: In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This Accounting Standards Update was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). It further requires disclosure on an annual basis of the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, it requires the following information disclosure: 1. Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU eliminates certain current disclosure requirements. These disclosure requirements will be effective for the Company beginning January 1, 2025, with early adoption of the amendments permitted. The Company is currently evaluating the impact from the adoption of ASU 2023-09 on disclosures to its condensed financial statements.
Revenue Recognition and Performance Obligations	The Company’s revenues include (i) sales of manufactured products pursuant to contracts with commercialization licensees, (ii) license and royalty revenues, and (iii) co-development and research fees generally in the form of milestone payments. The Company recognizes revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, a five-step model is applied that includes (1) identifying the contract with a customer, (2) identifying the performance obligation in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing when, or as, an entity satisfies a performance obligation. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in the current revenue recognition standard. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At contract inception, the Company assesses the goods promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a distinct good. When identifying performance obligations, the Company considers all goods or services promised in a contract regardless of whether explicitly stated in the contract or implied by customary business practice. The Company’s performance obligations consist mainly of transferring goods and services identified in the contracts, purchase orders or invoices. Manufacture and supply revenue – this revenue is derived from products manufactured exclusively for specific customers according to their strictly-defined specifications, subject only to specified quality control inspections. Accordingly, at the point in time when quality control requirements are satisfied, revenue net of related discounts is recorded. License and Royalty Revenue – license revenues are determined based on an assessment of whether the license is distinct from any other performance obligations that may be included in the underlying licensing arrangement. If the customer is able to benefit from the license without provision of any other performance obligations by the Company and the license is thereby viewed as a distinct or functional license, the Company then determines whether the customer has acquired a right to use the license or a right to access the license. For functional licenses that do not require further development or other ongoing activities by the Company, the customer is viewed as acquiring the right to use the license as, and when, transferred and revenues are generally recorded at a point in time, subject to contingencies or constraints. For symbolic licenses providing substantial value only in conjunction with other performance obligations to be provided by the Company, revenues are generally recorded over the term of the license agreement. Such other obligations provided by the Company generally include manufactured products, additional development services or other deliverables that are contracted to be provided during the license term. Payments received in excess of amounts ratably or otherwise earned are deferred and recognized over the term of the license or as contingencies or other performance obligations are met. Royalty revenue is estimated and recognized when sales under supply agreements with commercial licensees are recorded, absent any contractual constraints or collectability uncertainties. Royalties based on sales of licensed products have been recorded in this manner. Co-development and Research Fees – co-development and research fees are earned through performance of specific tasks, activities or completion of stages of development defined within a contractual development or feasibility study agreement with a customer. The nature of these performance obligations, broadly referred to as milestones or deliverables, are usually dependent on the scope and structure of the project as contracted, as well as the complexity of the product and the specific regulatory approval path necessary for that product. Accordingly, the duration of the Company’s research and development projects may range from several months to approximately three years. Although each contractual arrangement is unique, common milestones included in these arrangements include those for the performance of efficacy and other tests, reports of findings, formulation of initial prototypes, production of stability clinical and/or scale-up batches, and stability testing of those batches. Additional milestones may be established and linked to clinical results of the product submission and/or approval of the product by the FDA and the commercial launch of the product. Revenue recognition arising from milestone payments is dependent upon the facts and circumstances surrounding the milestone payments. Milestone payments based on a non-sales metric such as a development-based milestone (e.g., an NDA filing or obtaining regulatory approval) represent variable consideration and are included in the transaction price subject to any constraints. If the milestone payments relate to future development, the timing of recognition depends upon historical experience and the significance a third party has on the outcome. For milestone payments to be received upon the achievement of a sales threshold, the revenue from the milestone payments is recognized at the later of when the actual sales occur or the performance obligation to which the sales relate to has been satisfied. Contract Assets - in certain situations, customer contractual payment terms provide for invoicing in arrears. Accordingly, some, or all performance obligations may be completely satisfied before the customer may be invoiced under such agreements. In these situations, billing occurs after revenue recognition, which results in a contract asset supported by the estimated value of the completed portion of the performance obligation. These contract assets are reflected as a component of other receivables within Trade and other receivables within the Condensed Balance Sheets. As of March 31, 2024, and December 31, 2023, such contract assets were $700 and $1,662, respectively, consisting primarily of products and services provided under specific contracts to customers for which earnings processes have been met prior to shipment of goods or full delivery of completed services, as well as estimated receivables from contracts with 3rd parties. Contract Liabilities - in certain situations, customer contractual payment terms are structured to permit invoicing in advance of delivery of a good or service. In such instances, the customer’s cash payment may be received before satisfaction of some, or any, performance obligations that are specified. In these situations, billing occurs in advance of revenue recognition, which results in contract liabilities. These contract liabilities are reflected as deferred revenue within the Condensed Balance Sheets. As remaining performance obligations are satisfied, an appropriate portion of the deferred revenue balance is credited to earnings. As of March 31, 2024 and December 31, 2023, such contract liabilities were $33,508 and $33,896, respectively. Costs to obtain contracts - in certain situations, the Company may incur incremental costs of obtaining a contract with a customer. These costs, if expected to be recovered, are recognized as an asset and reflected as other assets within the Condensed Balance Sheets. The asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of March 31, 2024 and December 31, 2023, such costs to obtain contracts were $701 and $715, respectively.

Disclosure of accounting policy for revenue from contract with customer.

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Company Overview and Basis of Presentation (Details)										1 Months Ended	3 Months Ended		6 Months Ended	40 Months Ended
Company Overview and Basis of Presentation (Details)	Apr. 23, 2024 USD ($)	Apr. 22, 2024 USD ($) shares	Apr. 03, 2024 USD ($)	Mar. 25, 2024 $ / shares shares	Mar. 22, 2024 USD ($)	Sep. 07, 2022 USD ($)	Apr. 12, 2022 USD ($)	Mar. 26, 2021 USD ($)	Sep. 11, 2019 USD ($) $ / shares	Apr. 21, 2024 USD ($) shares	Mar. 31, 2024 USD ($) product $ / shares shares	Mar. 31, 2023 USD ($) shares	Jun. 30, 2023 USD ($) shares	Mar. 31, 2024 USD ($) $ / shares shares	Dec. 31, 2023 $ / shares
Subsidiary, Sale of Stock [Line Items]
Number of commercialized products \| product											5
Common stock, par value (in dollars per share) \| $ / shares											$ 0.001			$ 0.001	$ 0.001
Costs associated with public offering in Accounts Payable											$ 313,000	$ 0
Equity distribution agreement
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (in dollars per share) \| $ / shares									$ 0.001
Number of shares issued in transaction (in shares) \| shares												1,078,622
Consideration received on sale of stock												$ 916,000
Equity distribution agreement \| Maximum
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price						$ 35,000			$ 25,000,000
Equity distribution agreement \| Maximum \| Subsequent event
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price	$ 100,000,000
At-the-market offering, amendment no. 1 \| Maximum
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price								$ 50,000,000
At-the-market offering
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares											4,557,220			19,857,518
Consideration received on sale of stock											$ 12,012,000			$ 60,715,000
Payments for stock issuance costs											$ 373,000	$ 77,000		$ 2,928,000
Amended Equity Distribution Agreement \| Maximum \| Subsequent event
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price			$ 250,000,000
Lincoln Park agreement
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares											0		1,600,000
Consideration received on sale of stock													$ 1,987,000
Right to sell common stock, value							$ 40,000
Agreement term							36 months
Lincoln Park agreement \| Maximum
Subsidiary, Sale of Stock [Line Items]
Subsidiary or equity method investee, cumulative percentage ownership limitation after all transactions							9.99%
Lincoln Park Agreement, Commitment Share
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares													236,491
Underwritten Public Offering
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares				16,666,667
Consideration received on sale of stock					$ 70,500,000
Payments for stock issuance costs											$ 687,000
Underwriting discounts					$ 4,500,000
Costs associated with public offering in Accounts Payable											$ 313,000
Price per share (in dollars per share) \| $ / shares				$ 4.50
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Underwriting option duration					30 days
Over-Allotment Option \| Subsequent event
Subsidiary, Sale of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares		559,801								559,801
Consideration received on sale of stock		$ 77,500,000								$ 2,519,000
Over-Allotment Option \| Maximum
Subsidiary, Sale of Stock [Line Items]
Sale of stock, aggregate offering price					$ 2,500,000

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Stockholders’ deficit:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	90,478,731	68,533,085
Common stock, shares outstanding (in shares)	90,478,731	68,533,085

Contingencies	3 Months Ended
Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies From time to time, the Company has been and may again become involved in legal proceedings arising in the course of its business, including product liability, intellectual property, securities, civil tort, and commercial litigation, and environmental or other regulatory matters. Patent-Related Litigation Indivior Inc., Indivior UK Ltd., and Aquestive Therapeutics, Inc. v. Teva Pharmaceuticals USA, Inc. On February 7, 2018, the Company and Indivior initiated a lawsuit against Teva Pharmaceuticals USA, Inc. (“Teva”) asserting infringement of U.S. Patent No. 9,855,221 ("the '221 patent"). On April 3, 2018, the Company and Indivior initiated a separate lawsuit against Teva asserting infringement of U.S. Patent No. 9,931,305 ("the '305 patent"). On May 29, 2018, the lawsuits regarding the '221 and '305 patents were consolidated with a suit originally initiated by Indivior against Teva asserting infringement of U.S. Patent No. 9,687,454 ("the '454 patent"). The parties agreed that the case would be governed by the final judgment against Dr. Reddy’s, which also involved allegations of infringement of the '221, '305, and '454 patents, which was resolved via a settlement agreement and entry of a Stipulation and Order of Dismissal on June 28,2022. On January 31, 2024, the Court entered a Stipulation and Order of Dismissal, dismissing all claims and counterclaims with prejudice in the lawsuit against Teva. Kentucky Litigation - Humana Humana Inc. v. Indivior Inc, Indivior Solutions Inc., Indivior PLC, Reckitt Benckiser Group plc, Reckitt Benckiser Healthcare (UK) Ltd., and Aquestive Therapeutics, Inc. On August 20, 2021, Humana filed a complaint in state court in Kentucky, alleging conspiracy to violate the RICO Act, fraud under state law, unfair and deceptive trade practices under state law, insurance fraud, and unjust enrichment against the Company relating to Indivior’s launch of Suboxone Sublingual Film in 2010. The Humana action was stayed pending related litigation, and the stay was lifted on October 30, 2023. On February 23, 2024, the Company filed a motion to dismiss the Complaint. Briefing on the motion to dismiss is ongoing and is scheduled to be completed by May 23, 2024. No schedule has been set in the action and there is no trial date set. The Company is not able to determine or predict the ultimate outcome of the state court action in Kentucky by Humana, or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. California Litigation Neurelis, Inc. v. Aquestive Therapeutics, Inc. On December 5, 2019, Neurelis Inc. filed a lawsuit against the Company in the Superior Court of California, County of San Diego alleging the following three causes of action: (1) Unfair Competition under California Business and Professional Code § 17200 (“UCL”); (2) Defamation; and (3) Malicious Prosecution. Neurelis filed a First Amended Complaint on December 9, 2019, alleging the same three causes of action. The Company filed a Motion to Strike Neurelis’s Complaint under California’s anti-SLAPP (“strategic lawsuit against public participation”) statute on January 31, 2020, which Neurelis opposed. On August 6, 2020, the Court issued an order granting in part and denying in part the Company’s anti-SLAPP motion. The parties cross-appealed the ruling to the California Court of Appeal. The appeals court held oral argument on the appeal on October 14, 2021, and issued its ruling on November 17, 2021. Under the ruling, the court struck the entirety of the malicious prosecution claim and struck portions of the UCL and defamation claims. On April 12, 2022, Neurelis filed a Second Amended Complaint in response to the Court of Appeal’s decision. The Second Amended Complaint also added a cause of action for Trade Libel. On May 3, 2022, the Company filed a "demurrer" challenge to the sufficiency of the allegations of the Second Amended Complaint. Oral argument on the Company’s motion for attorney fees related to the anti-SLAPP motion and on the Second Amended Complaint and demurer challenge was held on June 17, 2022. The Court entered an order granting the Company’s motion for attorney fees, awarding $156 and ordering Neurelis to pay the fees within 60 days of June 17, 2022. The Court denied the Company’s demurrer and the parties proceeded with discovery on the claims in the Second Amended Complaint. The plaintiff filed a motion to file a third amended complaint. which the Court granted on November 17, 2023. The Third Amended Complaint alleges additional facts but includes the same claims as the Second Amended Complaint. Trial in this matter is scheduled for October 25, 2024. The Company is not able to determine or predict the ultimate outcome of this proceeding or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. Product Liability Litigation As of May 1, 2024, the Company has been named as a defendant in over 350 product liability lawsuits, along with Indivior and several other named defendants. These individual plaintiffs allege that their use of Suboxone® Sublingual Film, a prescription drug product for opioid use disorder, caused them dental injuries. On February 2, 2024, this litigation became a Multidistrict Litigation (“MDL") consolidated in the United States District Court for the Northern District of Ohio. Indivior has agreed to defend the Company in this litigation. This litigation is currently in the preliminary stages. The Company is not able to determine or predict the ultimate outcome of this litigation or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter.

Financial Instruments – Fair Value Measurements	3 Months Ended
Financial Instruments – Fair Value Measurements	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Financial Instruments – Fair Value Measurements	Financial Instruments – Fair Value Measurements Certain assets and liabilities are reported on a recurring basis at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: •Level 1 — Observable quoted prices in active markets for identical assets or liabilities. •Level 2 — Observable prices that are based on inputs not quoted on active markets but corroborated by market data. •Level 3 — Unobservable inputs that are supported by little or no market activity, such as pricing models, discounted cash flow methodologies and similar techniques. The carrying amounts reported in the balance sheets for trade and other receivables, prepaid and other current assets, accounts payable and accrued expenses, and deferred revenue approximate their fair values based on the short-term maturity of these assets and liabilities. The Company granted warrants to certain noteholders in connection with its debt repayment and debt refinancing during 2020 and 2019, respectively. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation. See Note 14, Warrants for further information on these warrants. The Company’s 12.5% Senior Secured Notes contained a repurchase offer or put option which gave holders of the option the right, but not the obligation, to require the Company to redeem the 12.5% Notes up to a capped portion of milestone payments resulting from the Monetization Agreement. This put option was valued based on Level 3 inputs and its fair value was based primarily on an independent third-party appraisal consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants Accounting and Valuation Guide. See Note 13, Long-Term Debt for further discussion. In June 2022, the Company issued pre-funded warrants to purchase up to 4,000,000 shares of Common Stock and Common Stock Warrants to purchase up to 8,850,000 shares of Common Stock in connection with its Securities Purchase Agreements with certain purchasers. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide. See Note 14, Warrants for further information on these warrants. On August 1, 2023, the Company entered into the Letter Agreement with the Exercising Holder of the remaining warrants to purchase 5,000,000 of the shares of Common Stock. Pursuant to the Letter Agreement, the Exercising Holder and the Company agreed that the Exercising Holder would exercise all of its Existing Warrants for shares of Common Stock underlying the Existing Warrants at $0.96 per share of Common Stock, the current exercise price of the Existing Warrants. Under the Letter Agreement, in consideration of the Exercising Holder exercising the Existing Warrants, the Company issued to the Exercising Holder New Warrants to purchase up to an aggregate of 2,750,000 shares of Common Stock at $2.60 per share. Those warrants were valued based on Level 3 inputs and their fair value was based primarily on an independent third-party appraisal prepared as of the grant date consistent with generally accepted valuation methods of the Uniform Standards of Professional Appraisal Practice, the American Society of Appraisers and the American Institute of Certified Public Accountants’ Accounting and Valuation Guide. See Note 14, Warrants for further information on these warrants. On November 1, 2023, in connection with the issuance of the 13.5% Notes, the Company and the Note Holders entered into the Royalty Right Agreements dated as of November 1, 2023, which provided the Note Holders: a.a tiered royalty between 1.0% and 2.0% of annual worldwide net sales of Anaphylm™ (epinephrine) Sublingual Film for a period of eight years from the first sale of Anaphylm on a global basis, and b.a tiered royalty between 1.0% to 2.0% of annual worldwide net sales of Libervant™ (diazepam) Buccal Film until the earlier of (1) the first sale of Anaphylm and (2) eight years from the first sale of Libervant. Those Royalty Agreements were valued based on Level 3 inputs and their fair value was based primarily on internal management estimates developed based on third-party data and reflect management’s judgements, the then current market conditions, and forecasts. The initial fair value measurement of the Royalty Right Agreements was determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, and the estimated amount of future sales of Anaphylm and Libervant. See Note 13, Long-Term Debt for further discussion.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Long-Term Debt - Debt Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Remainder of 2024	$ 0
2025	0
2026	9,540
2027	14,535
2028	20,925
Total	$ 45,000

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Net (Loss) Earnings Per Share

Net (Loss) Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

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

The following table reconciles the basic to diluted weighted average shares outstanding for the three months ended March 31, 2024 and 2023. Diluted EPS is adjusted by the effect of dilutive securities, including options and awards under the Company’s equity compensation plans, warrants and ESPP. As a result of the Company’s net loss incurred for the three months ended March 31, 2024, all potentially dilutive instruments outstanding would have anti-dilutive effects on per-share calculations. Therefore, basic and diluted net loss per share are the same for the three months ended March 31, 2024 as reflected below.


	Three Months Ended March 31,
	2024		2023
Numerator:
Net (loss) income	$	(12,828)	$	8,068
Denominator:
Weighted-average number of common shares – basic	73,614,710		55,631,947
Effect of stock options (a)	—		5,774,772
Effect of restricted stock units (b)	—		1,821,738
Effect of warrants (c)	—		10,564,429

Weighted-average number of common shares – diluted	73,614,710		73,792,886
(Loss) Earnings per share attributable to common stockholders:
(Loss) Earnings per common share – basic	$	(0.17)	$	0.15
(Loss) Earnings per common share – diluted	$	(0.17)	$	0.11

(a)For the three months ended March 31, 2024, outstanding stock options of 6,169,489 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS.

(b)For the three months ended March 31, 2024, outstanding restricted stock units of 3,918,451 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS.

(c)For the three months ended March 31, 2024, outstanding warrants of 4,624,977 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS.

(d)For the three months ended March 31, 2024 and 2023, the estimated effects of ESPP awards were not material.

Inventories (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventory, Net

The components of Inventory are as follows:


	March 31, 2024		December 31, 2023
Raw material	$	3,043	$	2,118
Packaging material	2,874		3,028
Finished goods	1,817		1,623
Total inventory	$	7,734	$	6,769

Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 39	$ 39
Expected amortization	118
Expected amortization in 2024	$ 157

Revenues and Trade Receivables, Net

3 Months Ended

Mar. 31, 2024

Revenues and Trade Receivables, Net

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

Performance Obligations

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

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

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

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

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

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

Contract Assets - in certain situations, customer contractual payment terms provide for invoicing in arrears. Accordingly, some, or all performance obligations may be completely satisfied before the customer may be invoiced under such agreements. In these situations, billing occurs after revenue recognition, which results in a contract asset supported by the estimated value of the completed portion of the performance obligation. These contract assets are reflected as a component of other receivables within Trade and other receivables within the Condensed Balance Sheets. As of March 31, 2024, and December 31, 2023, such contract assets were $700 and $1,662, respectively, consisting primarily of products and services provided under specific contracts to customers for which earnings processes have been met prior to shipment of goods or full delivery of completed services, as well as estimated receivables from contracts with 3rd parties.

Contract Liabilities - in certain situations, customer contractual payment terms are structured to permit invoicing in advance of delivery of a good or service. In such instances, the customer’s cash payment may be received before satisfaction of some, or any, performance obligations that are specified. In these situations, billing occurs in advance of revenue recognition, which results in contract liabilities. These contract liabilities are reflected as deferred revenue within the Condensed Balance Sheets. As remaining performance obligations are satisfied, an appropriate portion of the deferred revenue balance is credited to earnings. As of March 31, 2024 and December 31, 2023, such contract liabilities were $33,508 and $33,896, respectively.

Costs to obtain contracts - in certain situations, the Company may incur incremental costs of obtaining a contract with a customer. These costs, if expected to be recovered, are recognized as an asset and reflected as other assets within the Condensed Balance Sheets. The asset is amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of March 31, 2024 and December 31, 2023, such costs to obtain contracts were $701 and $715, respectively.

The Company’s revenues were comprised of the following:


	Three Months Ended March 31,
	2024		2023
Manufacture and supply revenue	$	10,518	$	9,762
License and royalty revenue	1,132		919
Co-development and research fees	403		453

Total revenues	$	12,053	$	11,134

Disaggregation of Revenue

The following table provides disaggregated net revenue by geographic area:


	Three Months Ended March 31,
	2024		2023
United States	$	10,427	$	8,165
Ex-United States	1,626		2,969
Total revenues	$	12,053	$	11,134

Ex-United States revenues are derived primarily from Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees), Zambon (primarily Manufacture and supply revenue) and Pharmanovia (Co-development and research fees) for revenue markets outside of the United States for the three months ended March 31, 2024 and from Hypera (Manufacture and supply revenue) and Indivior (Manufacture and supply revenue, Royalties and Co-development and research fees) for the three months ended March 31, 2023,

Trade and other receivables, net consist of the following:


	March 31, 2024		December 31, 2023
Trade receivables	$	6,703	$	5,570
Contract and other receivables	1,635		2,915
Less: allowance for doubtful accounts	(14)		(14)

Trade and other receivables, net	$	8,324	$	8,471

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


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

Allowance for doubtful accounts at end of the period	$	14	$	14

Concentration of Major Customers

Customers are considered major customers when net revenue exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. For the three months ended March 31, 2024, Indivior exceeded the 10% threshold for revenue and represented approximately 84% of total revenue. As of March 31, 2024, Indivior exceeded the 10% threshold for outstanding receivable balances and represented approximately 70% of outstanding receivables. For the three months ended March 31, 2023, Indivior and Hypera exceeded the 10% threshold for revenue and represented approximately 77% and 14% of total revenue, respectively. As of December 31, 2023, Indivior and Zevra Therapeutics, Inc. represented 65% and 13% of total trade and other receivables, respectively.

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.

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Company Overview and Basis of Presentation	3 Months Ended
Company Overview and Basis of Presentation	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company Overview and Basis of Presentation	Company Overview and Basis of Presentation (A) Company Overview Aquestive Therapeutics, Inc. (“Aquestive” or the “Company”) is a pharmaceutical company advancing medicines to solve patients’ problems with current standards of care and provide transformative products to improve their lives. The Company is developing pharmaceutical products that deliver complex molecules through alternative administrations to invasive and inconvenient standard of care therapies. The Company has five licensed commercialized products which are marketed by its licensees in the U.S. and around the world. The Company is the exclusive manufacturer of these licensed products. The Company also collaborates with pharmaceutical companies to bring new molecules to market using proprietary, best-in-class technologies, like PharmFilm®, and has proven drug development and commercialization capabilities. The Company is advancing a product pipeline for the treatment of severe allergic reactions, including anaphylaxis. The Company has also developed a product pipeline focused on treating diseases of the CNS. The Company’s production facilities are located in Portage, Indiana, and its corporate headquarters and primary research laboratory facilities are based in Warren, New Jersey. (B) Equity Transactions Equity Offering of Common Stock On September 11, 2019, the Company established the ATM facility pursuant to which the Company could offer up to $25,000 worth of shares of Common Stock, par value $0.001 per share, of the Company. On November 20, 2020, the Company began utilizing the ATM facility. On March 26, 2021, the Company filed a prospectus supplement to offer up to an additional $50,000 worth of shares of Common Stock under the ATM (the “2021 Prospectus”). The 2019 registration statement covering the shares under the ATM expired under its terms on September 17, 2022. On September 7, 2022, the Company filed a prospectus supplement to register the offer and sale of up to $35,000 worth of shares of Common Stock pursuant to the Amended Equity Distribution Agreement with Piper Sandler Companies (successor to Piper Jaffray & Co.) under a shelf registration statement on Form S-3 (“Registration Statement No. 333-254775” or “the 2021 Registration Statement”), that was declared effective by the SEC on April 5, 2021. The Company discontinued using the 2021 Prospectus upon the filing of the prospectus supplement on September 7, 2022. On April 3, 2024, the Company filed a prospectus supplement to register the offer and sale of up to $250,000 worth of shares of Common Stock pursuant to the Amended Equity Distribution Agreement under a shelf registration statement on Form S-3 (Registration Statement No. 333-278498), or the 2024 Registration Statement, which was declared effective by the SEC on April 23, 2024. The Company also established its ATM facility at $100,000 (see Note 20, Subsequent Events). The Company discontinued using the 2021 Registration Statement upon the filing of the 2024 Registration Statement on April 23, 2024. For the three months ended March 31, 2024, the Company sold 4,557,220 shares of Common Stock under the ATM which provided net proceeds of approximately $12,012 after deducting commissions and other transaction costs of $373. For the three months ended March 31, 2023, the Company sold 1,078,622 shares which provided net proceeds of approximately $916 after deducting commissions and other transaction costs of $77. On April 12, 2022, the Company entered into the Lincoln Park Purchase Agreement, which provides that, upon the terms and subject to the conditions and limitations set forth in the Lincoln Park Purchase Agreement, the Company has the right, but not the obligation, to sell to Lincoln Park up to $40,000 worth of shares of Common Stock from time to time over the 36-month term of the Lincoln Park Purchase Agreement. The Lincoln Park Purchase Agreement contains an ownership limitation such that the Company will not issue, and Lincoln Park will not purchase, shares of Common Stock if it would result in Lincoln Park’s beneficial ownership exceeding 9.99% of the Company’s then outstanding Common Stock. Lincoln Park has covenanted under the Lincoln Park Purchase Agreement not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s Common Stock. In 2022, the Company sold 1,600,000 shares, in addition to 236,491 commitment shares, which provided proceeds of approximately $1,987 in connection with the Lincoln Park Purchase Agreement. The Company did not sell shares in connection with the Lincoln Park Purchase Agreement in 2023 or for three months ended March 31, 2024. On March 22, 2024, the Company completed the Underwritten Public Offering of 16,666,667 shares of its common stock at the public offering price of $4.50 per share. At closing, Aquestive received net proceeds of $70,500 after deducting underwriting discounts of $4,500. In addition to the underwriting discounts related to this offering, the Company’s estimated incurred professional fees and other costs totaled $687 of which $313 remains unpaid as of March 31, 2024. In addition, the Company granted the underwriters a 30-day option to purchase up to an additional 2,500,000 shares of its Common Stock at the public offering price, less underwriting discounts and commissions. Subsequent to March 31, 2024, the underwriters exercised the option by purchasing an additional 559,801 shares of Common Stock, for additional gross proceeds of $2,519. See Note 20, Subsequent Events. (D) Basis of Presentation The accompanying interim unaudited condensed financial statements were prepared in conformity with U.S. GAAP and with Article 10 of Regulation S-X for interim financial reporting. In compliance with those rules, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 5, 2024 (the “2023 Annual Report on Form 10-K”). As included herein, the Condensed Balance Sheet as of December 31, 2023 is derived from the audited consolidated financial statements as of that date. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results of interim periods have been included. The accompanying financial statements reflect certain reclassifications from previously issued financial statements to conform to the current presentation. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited condensed financial statements. Any reference in these notes to applicable guidance refers to the authoritative U.S. GAAP as found in the ASC and ASU of FASB. As of March 31, 2024, the Company dissolved its subsidiaries and no longer prepares its financial statements on a consolidated basis. The dissolution of the subsidiaries did not have a material impact on the Company’s unaudited condensed financial statements as of March 31, 2024 and the audited consolidated financial statements as of December 31, 2023.

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	0.00%
Income taxes	$ 0	$ 0
Net (loss)/income before income taxes	(12,828,000)	8,068,000
Net (loss) income	(12,828,000)	8,068,000
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (12,828,000)	$ 8,068,000

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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

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Operating Lease Liabilities

Right-of-Use Assets and Lease Obligations (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

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


Remainder of 2024	$	926
2025	1,266
2026	1,300
2027	1,328
2028 and thereafter	4,990
Total future lease payments	9,810
Less: imputed interest	(4,112)
Total operating lease liabilities	$	5,698

Accrued Expenses - Narrative (Details) - 13.5% Senior Secured Notes due November 1, 2028	Mar. 31, 2024	Nov. 01, 2023
Short-Term Debt [Line Items]
Interest rate	13.50%
Senior notes
Short-Term Debt [Line Items]
Interest rate		13.50%

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 95,200	$ 23,872
Trade and other receivables, net	8,324	8,471
Inventories	7,734	6,769
Prepaid expenses and other current assets	2,121	1,854
Total current assets	113,379	40,966
Property and equipment, net	4,046	4,179
Right-of-use assets, net	5,442	5,557
Intangible assets, net	1,239	1,278
Other non-current assets	5,417	5,438
Total assets	129,523	57,418
Current liabilities:
Accounts payable	10,523	8,926
Accrued expenses	4,637	6,497
Lease liabilities, current	414	390
Deferred revenue, current	1,551	1,551
Liability related to the sale of future revenue, current	910	922
Loans payable, current	23	22
Total current liabilities	18,058	18,308
Notes payable, net	28,759	27,508
Royalty obligations, net	16,119	14,761
Liability related to the sale of future revenue, net	63,626	63,568
Lease liabilities	5,284	5,399
Deferred revenue, net of current portion	31,957	32,345
Other non-current liabilities	2,021	2,016
Total liabilities	165,824	163,905
Contingencies (Note 19)
Stockholders’ deficit:
Common stock, $0.001 par value. Authorized $250,000,000 shares; $90,478,731 and $68,533,085 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively	90	69
Additional paid-in capital	295,514	212,521
Accumulated deficit	(331,905)	(319,077)
Total stockholders’ deficit	(36,301)	(106,487)
Total liabilities and stockholders’ deficit	$ 129,523	$ 57,418
Common stock, shares outstanding (in shares)	90,478,731	68,533,085
Common stock, shares issued (in shares)	90,478,731	68,533,085

Sale of Future Revenue - Royalty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Sale of Future Revenue [Roll Forward]
Liability related to the sale of future revenue, net at beginning of the period	$ 64,490	$ 65,259
Revenues	12,053	11,134
Amortization of issuance costs	58	220
Liability related to the sale of future revenue, net at end of the period (includes current portion of $910 and $922, respectively)	64,536	64,490
Liability related to the sale of future revenue, current	910		$ 922
Royalty
Sale of Future Revenue [Roll Forward]
Revenues	$ (12)	$ (989)

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.

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-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
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

Condensed Statements of Operations and Comprehensive (Loss) Income - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenues	$ 12,053,000	$ 11,134,000
Costs and expenses:
Manufacture and supply	4,389,000	4,737,000
Research and development	5,932,000	3,547,000
Selling, general and administrative	10,689,000	7,455,000
Total costs and expenses	21,010,000	15,739,000
Loss from operations	(8,957,000)	(4,605,000)
Other income/ (expenses):
Interest expense	(2,784,000)	(1,435,000)
Interest expense related to royalty obligations	(1,358,000)	0
Interest expense related to the sale of future revenue	(58,000)	(52,000)
Interest income and other income, net	329,000	14,513,000
Loss on extinguishment of debt	0	(353,000)
Net (loss) income before income taxes	(12,828,000)	8,068,000
Income taxes	0	0
Net (loss) income	(12,828,000)	8,068,000
Comprehensive (loss) income	$ (12,828,000)	$ 8,068,000
(Loss) earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.17)	$ 0.15
Diluted (in dollars per share)	$ (0.17)	$ 0.11
Weighted average common shares outstanding:
Basic (in shares)	73,614,710	55,631,947
Diluted (in shares)	73,614,710	73,792,886

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 168	$ 286

Long-Term Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Long-Term Debt

12.5% Senior Secured Notes

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

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

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

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

The First Supplemental Indenture contained a provision whereby, as the Company receives any cash proceeds from the Monetization Agreement, each noteholder had the right to require the Company to redeem all or any part of such noteholder’s outstanding 12.5% Notes at a repurchase price in cash equal to 112.5% of the principal amount, plus accrued and unpaid interest. This repurchase offer was capped at 30% of the cash proceeds received by the Company as the contingent milestones were attained, if any, up through June 30, 2025. The embedded put option was deemed to be a derivative under ASC 815, Derivatives and Hedging, which required the recording of the embedded put option at fair value subject to remeasurement at each reporting period. Accordingly, a valuation study was performed by an independent third party appraiser and updated as of March 31, 2023. Based on the valuation study, the put option was valued at $58 and has been recorded in Other non-current liabilities. The increase in the put option fair value by $13 was recorded in Interest income and other income, net on the Condensed Statements of Operations and Comprehensive (Loss) Income for the three months ended March 31, 2023. In addition, as of the closing of this transaction, the Company issued to the holders of the 12.5% Notes warrants to purchase 143,000 shares of the Company’s Common Stock. As of March 31, 2024, the put option is no longer in place due to the refinancing of the 12.5% Notes.

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

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

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

During the first quarter of 2023, the Company redeemed $9,086 of its outstanding 12.5% Notes. The Company also paid $353 in prepayment premium as result of the early retirement of debt which was reflected as a loss on extinguishment of debt in the Company’s Condensed Statements of Operations and Comprehensive (Loss) Income.

Amortization expense arising from amortization of deferred debt issuance costs and debt discounts related to the 12.5% Notes for the three months ended March 31, 2023 was $4.

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

13.5% Senior Secured Notes

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

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

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

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

i.1.0% of the principal redeemed; and

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

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

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

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

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

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

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

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

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

The Royalty Right Agreements’ fair value is estimated by applying probability-weighted cash flows for future sales, which are then discounted to present value. Changes to fair value of the Royalty Rights Agreements can result from changes to one or a number of the aforementioned inputs. A significant change in unobservable inputs could result in a material increase or

decrease to the effective interest rate of the Royalty Right Agreements liability. As of March 31, 2024, there were no material changes to the significant unobservable inputs used to recognize the Royalty Right Agreements liability.

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

Valuation Methodology

Significant Unobservable Input

Weighted Average (range, if applicable)

Discount Rate

15%

Royalty Right Agreements

Probability weighted
income approach

Probability of Success

75%

Projected Years of Payments

2025

2033

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

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

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

Amortization expense arising from the discounts related to the 13.5% Notes and Royalty Right Agreements for the three-month period ended March 31, 2024 was $1,257 and $1,358, respectively.

Unamortized discounts totaled $16,408 and $17,665 for the 13.5% Notes and $40,807 and $42,165 for the Royalty obligations as of March 31, 2024 and December 31, 2023, respectively.

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


	March 31,		December 31,
	2024		2023
Total outstanding notes	$	45,000	$	45,000
Unamortized discount, including Exit Fee	(16,408)		(17,665)

Notes payable, long-term	28,592		27,335
Finance lease	167		173
Notes payable, net	$	28,759	$	27,508


	March 31,		December 31,
	2024		2023
Royalty obligations	$	56,926	$	56,926
Unamortized discount	(40,807)		(42,165)
Royalty obligations, net	$	16,119	$	14,761

Scheduled principal payments on the 13.5% Notes as of March 31, 2024 are as follows:


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

Total	$	45,000

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.

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-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
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-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
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-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
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Contingencies (Details) - Neurelis, Inc. v. Aquestive Therapeutics, Inc. $ in Thousands	May 03, 2022 USD ($)	Dec. 05, 2019 cause
Loss Contingencies [Line Items]
Number of cases pending \| cause		3
Litigation settlement, amount awarded from other party \| $	$ 156

Right-of-Use Assets and Lease Obligations - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) lease	Mar. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Number of leases \| lease	3
Operating lease expense	$ 444	$ 418
Variable lease expense	$ 115	$ 108
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	4 years
Estimated discount rate	14.80%
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	9 years 6 months
Estimated discount rate	15.60%

Risks and Uncertainties	3 Months Ended
Risks and Uncertainties	Mar. 31, 2024
Risks and Uncertainties [Abstract]
Risks and Uncertainties	Risks and Uncertainties The Company assesses liquidity in terms of its ability to generate cash to fund its operating, investing and financing activities. The Company’s cash requirements for 2024 and beyond include expenses related to continuing development and clinical evaluation of its products, manufacture and supply costs, costs of regulatory filings, patent prosecution expenses and litigation expenses, expenses related to commercialization of its products, as well as costs to comply with the requirements of being a public company operating in a highly regulated industry. As of March 31, 2024, the Company had $95,200 of cash and cash equivalents. The Company has experienced a history of net losses in prior periods. The Company’s accumulated deficits totaled $331,905 as of March 31, 2024. The net losses and accumulated deficits were partially offset by gross margins from sales of commercialized licensed and proprietary products (prior to the licensing agreement of Sympazan with Assertio in October 2022), license fees, milestone and royalty payments from commercial licensees and co-development parties. The Company’s funding requirements have been met by its cash and cash equivalents, as well as its existing equity and debt offerings, including the 13.5% Senior Secured Notes as further discussed in Note 13, Long-Term Debt. The Company began utilizing its ATM facility in November 2020. Since inception to March 31, 2024, the Company sold 19,857,518 shares of Common Stock which generated net cash proceeds of approximately $60,715, net of commissions and other transaction costs of $2,928. For the three months ended March 31, 2024, the Company sold 4,557,220 shares of Common Stock which provided net proceeds of approximately $12,012, net of commissions and other transaction costs of $373. In April 2024, the Company established its ATM facility to $100,000 (see Note 20, Subsequent Events). While the Company’s ability to execute its business objectives and achieve profitability over the longer term cannot be assured, the Company’s on-going business, existing cash and cash equivalents, expense management activities, including, but not limited to the ceasing of R&D activities, as well as access to the equity capital markets through its ATM facility and under the Lincoln Park Purchase Agreement, provide near term liquidity for the Company to fund its operating needs for at least the next twelve months as it continues to execute its business strategy.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accrued Expenses

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following:


	March 31, 2024		December 31, 2023
Accrued compensation	$	1,731	$	4,202
Real estate and personal property taxes	433		337
Accrued distribution expenses and sales returns provision	640		645
Interest payable	1,536		1,013
Other	297		300
Total accrued expenses	$	4,637	$	6,497

The reduction in Accrued compensation is mostly related to payments of accrued bonus during the three months ended March 31, 2024.

The increase in Interest payable is mostly due to the interest incurred on 13.5% Senior Notes. The 13.5% Senior Notes were issued on November 1, 2023 thus accruing only two months of interest as of December 31, 2023 while earning three months of interest as of March 31, 2024. Payments were due on January 2, 2024 and April 1, 2024, respectively. See Note 13, Long-Term Debt , for discussion of 13.5% Notes and related interest payable.

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

Sale of Future Revenue (Tables)

3 Months Ended

Mar. 31, 2024

Royalty Obligation Activity

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


	March 31,		December 31,
	2024		2023
Liability related to the sale of future revenue, net at beginning of the period	$	64,490	$	65,259
Royalties related to the sale of future revenue	(12)		(989)
Amortization of issuance costs	58		220

Liability related to the sale of future revenue, net at end of the period (includes current portion of $910 and $922, respectively)	$	64,536	$	64,490

Long-Term Debt - Schedule Of Royalty Right Agreements (Details)	Mar. 31, 2024
Measurement Input, Discount Rate
Line of Credit Facility [Line Items]
Measurement input	0.15
Measurement Input, Probability Of Success
Line of Credit Facility [Line Items]
Measurement input	0.75

Share-Based Compensation - Performance Based (Details) - Performance Shares - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Units
Unvested (in shares)	1,182	1,332
Vested (in shares)	(150)
Forfeited (in shares)	0
Vested and expected to vest at end of period (in shares)	1,061
Weighted Average Grant Date Fair Value
Unvested (in dollars per share)	$ 2.40	$ 2.40
Vested (in dollars per share)	2.40
Forfeited (in dollars per share)	0
Vested and expected to vest at end of period (in dollars per share)	$ 2.40

Material Agreements (Details) - USD ($) $ in Thousands							2 Months Ended	3 Months Ended			12 Months Ended	17 Months Ended	29 Months Ended	35 Months Ended
Material Agreements (Details) - USD ($) $ in Thousands	Mar. 27, 2023	Mar. 02, 2023	Oct. 26, 2022	Sep. 26, 2022	Nov. 03, 2020	Apr. 01, 2016	Dec. 31, 2020	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2023	Feb. 20, 2019	Mar. 31, 2023	Sep. 30, 2023	May 17, 2022	Mar. 03, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Interest income and other income, net								$ 329		$ 14,513
Manufacture and supply								4,389		4,737
Royalties related to the sale of future revenue								12,053		11,134
Chief Executive Officer
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Severance costs monthly payment, duration															18 months
Severance costs										274
Assertio Holdings, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue			$ 6,000
Proceeds from collaborators			$ 9,000
License and royalty revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue								1,132		919
Manufacture and supply revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue								$ 10,518		9,762
Commercial exploitation agreement with Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
License agreement term								7 years
Automatic renewal period of agreement		1 year						1 year
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement \| Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred income										5,482			$ 5,482
Revenue from collaborative arrangement, excluding revenue from contract with customer										11,482
Interest income and other income, net											$ 6,000
Manufacture and supply									$ 5,482
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement \| Manufacture and supply revenue \| Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue from collaborative arrangement, excluding revenue from contract with customer										2,230
Deferred income, revenue recognized										$ 1,682
Supplemental agreement with Indivior
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment												$ 40,750
License agreement with Sunovion Pharmaceuticals, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment						$ 22,000
License agreement with Sunovion Pharmaceuticals, Inc. upfront
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment						5,000
License agreement with Sunovion Pharmaceuticals, Inc milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate payment						17,000
License agreement with Sunovion Pharmaceuticals, Inc milestones \| License and royalty revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties related to the sale of future revenue						$ 4,000
MAM Pangolin Royalty , LLC \| Monetization Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue					$ 40,000		$ 10,000						$ 50,000	$ 50,000
Proceeds from debt, contingent on additional milestones					75,000
MAM Pangolin Royalty , LLC \| Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue					$ 125,000
Haisco Pharmaceutical Group Co., Ltd, upfront payment
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Receivable																$ 7,000
Atnahs Pharma UK Limited, Amended Agreement \| License & Supply Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue	$ 2,000
License & Supply Agreement \| Atnahs Pharma UK Limited
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from sale of future revenue				$ 3,500

Net (Loss) Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Basic and Diluted Net Loss Per Share


	Three Months Ended March 31,
	2024		2023
Numerator:
Net (loss) income	$	(12,828)	$	8,068
Denominator:
Weighted-average number of common shares – basic	73,614,710		55,631,947
Effect of stock options (a)	—		5,774,772
Effect of restricted stock units (b)	—		1,821,738
Effect of warrants (c)	—		10,564,429

Weighted-average number of common shares – diluted	73,614,710		73,792,886
(Loss) Earnings per share attributable to common stockholders:
(Loss) Earnings per common share – basic	$	(0.17)	$	0.15
(Loss) Earnings per common share – diluted	$	(0.17)	$	0.11

(a)For the three months ended March 31, 2024, outstanding stock options of 6,169,489 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS.

(b)For the three months ended March 31, 2024, outstanding restricted stock units of 3,918,451 shares of Common Stock were anti-dilutive and excluded from the computation of diluted EPS.

(c)For the three months ended March 31, 2024, outstanding warrants of 4,624,977 shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS.

(d)For the three months ended March 31, 2024 and 2023, the estimated effects of ESPP awards were not material.

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net


	Useful Lives	March 31, 2024		December 31, 2023
Machinery	3-15 years	$	20,248	$	20,248
Furniture and fixtures	3-15 years	769		769
Leasehold improvements	(a)	21,386		21,386
Computer, network equipment and software	3-7 years	2,627		2,627
Construction in progress		2,062		2,033
		47,092		47,063
Less: accumulated depreciation and amortization		(43,046)		(42,884)
Total property and equipment, net		$	4,046	$	4,179

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

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 3, 2024, the Company filed a prospectus supplement to register the offer and sale of up to $250,000 worth of shares of Common Stock pursuant to the Amended Equity Distribution Agreement under a shelf registration statement on Form S-3 (Registration Statement No. 333-278498), or the 2024 Registration Statement, which was declared effective by the SEC on April 23, 2024. The Company also established an At-the-Market facility for $100,000, which replaced the Company's previous ATM facility that expired in April 2024. On April 22, 2024, the underwriters purchased 559,801 shares of Common Stock to cover over-allotments in the Underwritten Public Offering, bringing the total gross proceeds to the Company from the Underwritten Public Offering to approximately $77.5 million, before deducting underwriting commissions and other offering expenses payable by the Company. All of the shares of Common Stock sold in the Underwritten Public Offering, including the over-allotment shares, were offered by the Company. On April 26, 2024, the FDA approved the Company's NDA for its drug candidate Libervant™ (diazepam) Buccal Film for the acute treatment of intermittent, stereotypic episodes of frequent seizure activity that are distinct from a patient’s usual seizure pattern in patients with epilepsy between two to five years of age.

Share-Based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Options
Exercised (in shares)	(231,400)
Stock options
Number of Options
Outstanding (in shares)	6,169,000	5,733,000
Granted (in shares)	739,000
Exercised (in shares)	(231,000)
Forfeited/expired (in shares)	(72,000)
Vested or expected to vest at end of period (in shares)	6,053,000
Exercisable at end of period (in shares)	4,442,000
Weighted Average Exercise Price
Outstanding (in dollars per share)	$ 5.72	$ 5.58
Granted (in dollars per share)	5.68
Exercised (in dollars per share)	2.33
Forfeited/expired (in dollars per share)	4.76
Vested or expected to vest at end of period (in dollars per share)	5.75
Exercisable at end of period (in dollars per share)	$ 6.56

Sale of Future Revenue - Narrative (Details) - USD ($) $ in Thousands		2 Months Ended	3 Months Ended			29 Months Ended	35 Months Ended
	Nov. 03, 2020	Dec. 31, 2020	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2020	Mar. 31, 2023	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Payments for loan acquisition costs			$ 5	$ 9,086
Revenues			12,053	11,134
Royalty
Disaggregation of Revenue [Line Items]
Revenues			(12)	$ (989)
MAM Pangolin Royalty , LLC \| Maximum
Disaggregation of Revenue [Line Items]
Proceeds from sale of future revenue	$ 125,000
License agreement with Sunovion Pharmaceuticals, Inc.
Disaggregation of Revenue [Line Items]
Minimum annual royalty receivable			$ 1,000		$ 1,000
License agreement with Sunovion Pharmaceuticals, Inc. \| Royalty
Disaggregation of Revenue [Line Items]
Revenues					$ 8,000
Monetization Agreement
Disaggregation of Revenue [Line Items]
Payments for loan acquisition costs	$ 2,909
Effective annual interest rate	24.90%
Monetization Agreement \| MAM Pangolin Royalty , LLC
Disaggregation of Revenue [Line Items]
Proceeds from sale of future revenue	$ 40,000	$ 10,000				$ 50,000	$ 50,000
Proceeds from debt, contingent on additional milestones	$ 75,000

Revenues and Trade Receivables, Net - Changes in Allowance for Bad Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts at beginning of the period	$ 14	$ 40
Allowance expense (reduction)	0	$ (26)
Allowance for doubtful accounts at end of the period	$ 14

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-based Compensation Expense

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


	Three Months Ended March 31,
	2024		2023
Manufacture and supply	$	70	$	41
Research and development	170		72
Selling, general and administrative	1,340		231
Total share-based compensation expenses	$	1,580	$	344

Share-based compensation from:
Restricted stock units	$	933	$	25
Stock options	647		319

Total share-based compensation expenses	$	1,580	$	344

Restricted Stock Units Awards

The following tables provide information about the Company’s restricted stock unit and stock option activity during the three month period ended March 31, 2024:


Restricted Stock Unit Awards (RSUs) - Service-based:	Number of Units	Weighted Average Grant Date Fair Value
	(in thousands)
Unvested as of December 31, 2023	1,948	$	0.97
Granted	1,353	$	5.68
Vested	(565)	$	0.89

Unvested as of March 31, 2024	2,736	$	3.32
Vested and expected to vest as of March 31, 2024	2,488	$	3.28

As of March 31, 2024, $7,865 of total unrecognized compensation expenses related to unvested service-based restricted stock units are expected to be recognized over a weighted average period of 2.43 years from the date of grant. The service-based restricted stock units granted to employees are subject to a three-year graduated vesting schedule and are not subject to performance-based criteria other than continued employment.

Performance Share Activity


Restricted Stock Unit Awards (RSUs) - Market conditions vesting-based:	Number of Units	Weighted Average Grant Date Fair Value
	(in thousands)
Unvested as of December 31, 2023	1,332	$	2.40

Vested	(150)	2.40
Forfeited	—	—
Unvested as of March 31, 2024	1,182	$	2.40
Vested and expected to vest as of March 31, 2024	1,061	$	2.40

Stock Option Activity


Stock Option Awards:	Number of Options	Weighted Average Exercise Price
	(in thousands)
Outstanding as of December 31, 2023	5,733	$	5.58
Granted	739	5.68
Exercised	(231)	2.33
Forfeited/Expired	(72)	4.76
Outstanding as of March 31, 2024	6,169	$	5.72
Vested and expected to vest as of March 31, 2024	6,053	$	5.75
Exercisable as of March 31, 2024	4,442	$	6.56

The fair values of stock options granted during the three months ended March 31, 2024 were estimated using the Black-Scholes pricing model based on the following assumptions:


Expected dividend yield			—%
Expected volatility			104%
Expected term (years)			6.1
Risk-free interest rate			4.1%

Right-of-Use Assets and Lease Obligations

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Right-of-Use Assets and Lease Obligations

The Company leases all realty used at its production and warehouse facilities, corporate headquarters, commercialization operations center and research and laboratory facilities. None of these three leases include the characteristics specified in ASC 842, Leases, which require classification as financing leases and, accordingly, these leases are accounted for as operating leases. These leases, as amended, provide remaining terms between 4.0 and 9.5 years, including renewal options expected to be exercised to extend the lease periods.

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

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

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

The Company’s lease costs are recorded in manufacture and supply, research and development and selling, general and administrative expenses in its Condensed Statements of Operations and Comprehensive (Loss) Income. For the three months ended March 31, 2024, total operating lease expenses totaled $444 including variable lease expenses such as common area maintenance and operating costs of $115. For the three months ended March 31, 2023, total operating lease expenses totaled $418, including variable lease expenses such as common area maintenance and operating costs of $108.

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


Remainder of 2024	$	926
2025	1,266
2026	1,300
2027	1,328
2028 and thereafter	4,990
Total future lease payments	9,810
Less: imputed interest	(4,112)
Total operating lease liabilities	$	5,698

Other Non-current Assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Other Non-current Assets

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


	March 31, 2024		December 31, 2023
Royalty receivable	$	4,000	$	4,000
Other	1,417		1,438
Total other non-current assets	$	5,417	$	5,438

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued compensation	$ 1,731	$ 4,202
Real estate and personal property taxes	433	337
Accrued distribution expenses and sales returns provision	640	645
Interest payable	1,536	1,013
Other	297	300
Total accrued expenses	$ 4,637	$ 6,497

Share-Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

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


	Three Months Ended March 31,
	2024		2023
Manufacture and supply	$	70	$	41
Research and development	170		72
Selling, general and administrative	1,340		231
Total share-based compensation expenses	$	1,580	$	344

Share-based compensation from:
Restricted stock units	$	933	$	25
Stock options	647		319

Total share-based compensation expenses	$	1,580	$	344

Share-Based Compensation Equity Awards

The following tables provide information about the Company’s restricted stock unit and stock option activity during the three month period ended March 31, 2024:


Restricted Stock Unit Awards (RSUs) - Service-based:	Number of Units	Weighted Average Grant Date Fair Value
	(in thousands)
Unvested as of December 31, 2023	1,948	$	0.97
Granted	1,353	$	5.68
Vested	(565)	$	0.89

Unvested as of March 31, 2024	2,736	$	3.32
Vested and expected to vest as of March 31, 2024	2,488	$	3.28


Restricted Stock Unit Awards (RSUs) - Market conditions vesting-based:	Number of Units	Weighted Average Grant Date Fair Value
	(in thousands)
Unvested as of December 31, 2023	1,332	$	2.40

Vested	(150)	2.40
Forfeited	—	—
Unvested as of March 31, 2024	1,182	$	2.40
Vested and expected to vest as of March 31, 2024	1,061	$	2.40

As of March 31, 2024, $1,858 of unrecognized compensation expense related to unvested market condition vesting based restricted stock units are expected to be recognized over a weighted average period of 2.10 years from the date of grant.

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

2022 Inducement Equity Incentive Plan

In accordance with NASDAQ Listing Rule 5635(c)(4), the Company adopted the 2022 Equity Inducement Plan approved by the Compensation Committee of the Board of Directors of the Company effective as of July 29, 2022.There were no awards outstanding under this Plan as of March 31, 2024.


Stock Option Awards:	Number of Options	Weighted Average Exercise Price
	(in thousands)
Outstanding as of December 31, 2023	5,733	$	5.58
Granted	739	5.68
Exercised	(231)	2.33
Forfeited/Expired	(72)	4.76
Outstanding as of March 31, 2024	6,169	$	5.72
Vested and expected to vest as of March 31, 2024	6,053	$	5.75
Exercisable as of March 31, 2024	4,442	$	6.56

The fair values of stock options granted during the three months ended March 31, 2024 were estimated using the Black-Scholes pricing model based on the following assumptions:


Expected dividend yield			—%
Expected volatility			104%
Expected term (years)			6.1
Risk-free interest rate			4.1%

The weighted average grant date fair value of stock options granted during the three months ended March 31, 2024 was $4.69. During the three months ended March 31, 2024, stock options were granted with an exercise price of $5.68 and accordingly, given the Company’s share price of $4.26 at March 31, 2024, the intrinsic value provided by certain shares granted during this period was de minimis.

As of March 31, 2024, $3,949 of unrecognized compensation expense related to non-vested stock options is expected to be recognized over a weighted average period of 1.78 years from the date of grant.

Risks and Uncertainties (Details) - USD ($) $ in Thousands	3 Months Ended		40 Months Ended
Risks and Uncertainties (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Dec. 31, 2023
Concentration Risk [Line Items]
Cash and cash equivalents	$ 95,200		$ 95,200	$ 23,872
Accumulated deficit	$ (331,905)		$ (331,905)	$ (319,077)
At-the-market offering
Concentration Risk [Line Items]
Number of shares issued in transaction (in shares)	4,557,220		19,857,518
Consideration received on sale of stock	$ 12,012		$ 60,715
Payments for stock issuance costs	$ 373	$ 77	$ 2,928
Equity distribution agreement
Concentration Risk [Line Items]
Number of shares issued in transaction (in shares)		1,078,622
Consideration received on sale of stock		$ 916
13.5% Senior Secured Notes due November 1, 2028
Concentration Risk [Line Items]
Interest rate	13.50%		13.50%

Net (Loss) Earnings Per Share - Narrative (Details)	3 Months Ended
Net (Loss) Earnings Per Share - Narrative (Details)	Mar. 31, 2024 shares
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,169,489
Warrants on common shares outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	4,624,977

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following:


	March 31, 2024		December 31, 2023
Accrued compensation	$	1,731	$	4,202
Real estate and personal property taxes	433		337
Accrued distribution expenses and sales returns provision	640		645
Interest payable	1,536		1,013
Other	297		300
Total accrued expenses	$	4,637	$	6,497

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (A) Recent Accounting Pronouncements As of December 31, 2023, the Company is no longer an “emerging growth company,” but remains a “smaller reporting company”. The Company complies with new or revised accounting standards by the relevant dates on which adoption of such standards is required for smaller reporting companies. From time to time, new accounting pronouncements are issued by the FASB and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recent Accounting Pronouncements Adopted as of March 31, 2024: In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This Accounting Standards Update was issued to address the complexity in accounting for certain financial instruments with characteristics of liabilities and equity. Among other provisions, the amendments in this ASU significantly change the guidance on the issuer’s accounting for convertible instruments and the guidance on the derivative scope exception for contracts in an entity’s own equity such that fewer conversion features will require separate recognition, and fewer freestanding instruments, like warrants, will require liability treatment. More specifically, the ASU reduces the number of models that may be used to account for convertible instruments from five to three, amends diluted EPS calculations for convertible instruments, modifies the requirements for a contract that may be settled in an entity’s own shares to be classified in equity and requires expanded disclosures intended to increase transparency. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This Accounting Standards Update was issued to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for such equity securities. The Company adopted the new guidance on January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s condensed financial statements. Recent Accounting Pronouncements Not Adopted as of March 31, 2024: In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures. This Accounting Standards Update was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). It further requires disclosure on an annual basis of the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). Additionally, it requires the following information disclosure: 1. Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU eliminates certain current disclosure requirements. These disclosure requirements will be effective for the Company beginning January 1, 2025, with early adoption of the amendments permitted. The Company is currently evaluating the impact from the adoption of ASU 2023-09 on disclosures to its condensed financial statements.

Long-Term Debt - Schedule of Term Notes and Unamortized Debt Discount Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Total outstanding notes	$ 45,000
Royalty Obligations \| Senior notes
Line of Credit Facility [Line Items]
Total outstanding notes		$ 56,926
Royalty obligations		56,926
Royalty Obligations \| Unsecured Debt
Line of Credit Facility [Line Items]
Total outstanding notes	56,926	56,926
Unamortized discount, including Exit Fee	(40,807)	(42,165)
Royalty obligations	56,926	56,926
Unamortized discount	(40,807)	(42,165)
Total outstanding notes	16,119	14,761
13.5% Senior Secured Notes due November 1, 2028 \| Senior notes
Line of Credit Facility [Line Items]
Total outstanding notes	45,000	45,000
Unamortized discount, including Exit Fee	(16,408)	(17,665)
Notes payable, long-term	28,592	27,335
Finance lease	167	173
Notes payable, net	28,759	27,508
Royalty obligations	45,000	45,000
Unamortized discount	$ (16,408)	$ (17,665)

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

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw material	$ 3,043	$ 2,118
Packaging material	2,874	3,028
Finished goods	1,817	1,623
Total inventory	$ 7,734	$ 6,769

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (in dollars per share)		$ 4.26
Inducement equity, common stock options outstanding (in shares)	0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs of RSU awards	$ 7,865
Unrecognized compensation cost, recognition period	2 years 5 months 4 days
Award vesting period	3 years
Average closing prices period	30 days
Restricted stock units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	150.00%
Restricted stock units \| Market Condition Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 1.75
Award vesting rights, percentage	0.00%
Restricted stock units \| Market Condition Range Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 1.75
Award vesting rights, percentage	50.00%
Restricted stock units \| Market Condition Range Three \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 1.76
Award vesting rights, percentage	50.01%
Restricted stock units \| Market Condition Range Three \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 2.50
Award vesting rights, percentage	99.99%
Restricted stock units \| Market Condition Range Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 2.50
Award vesting rights, percentage	100.00%
Restricted stock units \| Market Condition Range Five \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 2.51
Award vesting rights, percentage	100.01%
Restricted stock units \| Market Condition Range Five \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 3.25
Award vesting rights, percentage	149.99%
Restricted stock units \| Market Condition Range Six
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance price threshold (in dollars per share)	$ 3.25
Award vesting rights, percentage	150.00%
Restricted stock units \| Market Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs of RSU awards	$ 1,858
Unrecognized compensation cost, recognition period	2 years 1 month 6 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, recognition period	1 year 9 months 10 days
Weighted average grant date fair value (in dollars per share)	$ 4.69
Granted (in dollars per share)	$ 5.68
Unrecognized compensation expense related to non-vested stock options	$ 3,949

Other Non-current Assets - Summary of Other Non-current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Royalty receivable	$ 4,000	$ 4,000
Other	1,417	1,438
Total other non-current assets	$ 5,417	$ 5,438

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
Condensed Statements of Cash Flows - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Operating activities:
Net (loss) income	$ (12,828)	$ 8,068
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Depreciation, amortization, and impairment	207	325
Share-based compensation	1,580	344
Amortization of debt issuance costs and discounts	2,673	56
Other, net	32	(260)
Changes in operating assets and liabilities:
Trade and other receivables, net	147	(2,217)
Inventories	(965)	(1,201)
Prepaid expenses and other assets	(253)	(195)
Accounts payable	1,284	2,494
Accrued expenses and other liabilities	(1,873)	(3,472)
Deferred revenue	(388)	4,874
Net cash (used for) provided by operating activities	(10,384)	8,816
Investing activities:
Capital expenditures	(29)	(2)
Net cash used for investing activities	(29)	(2)
Financing activities:
Proceeds from exercise of stock options, net	539	0
Repayment of debt principal including lease liabilities	(5)	(9,086)
Premium paid to retire debt	0	(1,027)
Payments for taxes on share-based compensation	(893)	(8)
Net cash provided by (used for) financing activities	81,741	(9,205)
Net increase (decrease) in cash and cash equivalents	71,328	(391)
Cash and cash equivalents:
Cash and cash equivalents at beginning of period	23,872	27,273
Cash and cash equivalents at end of period	95,200	26,882
Supplemental disclosures of cash flow information:
Cash payments for interest	1,003	1,466
Costs associated with public offering in Accounts Payable	313	0
Proceeds from common stock issued under public equity offering, net - ATM
Financing activities:
Proceeds from common stock issued under public equity offering	11,974	916
Proceeds from common stock issued under public equity offering, net
Financing activities:
Proceeds from common stock issued under public equity offering	$ 70,126	$ 0

Financial Instruments – Fair Value Measurements (Details) - $ / shares	1 Months Ended
	Jun. 30, 2022	Mar. 31, 2024	Nov. 01, 2023	Aug. 01, 2023	Jul. 15, 2019
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)					$ 0.001
Warrants issued (in shares)					2,000,000
Existing Warrants
Class of Warrant or Right [Line Items]
Class of warrant or right, outstanding (in shares)				5,000,000
Warrant exercise price (in dollars per share)				$ 0.96
Warrants issued (in shares)		1,714,429
New Warrants
Class of Warrant or Right [Line Items]
Warrant exercise price (in dollars per share)				$ 2.60
Warrants issued (in shares)				2,750,000
Securities purchase agreement
Class of Warrant or Right [Line Items]
Shares of common stock (in shares)	4,000,000
Shares of common stock in connection with securities purchase agreements (in shares)	8,850,000
Senior secured notes due 2025
Class of Warrant or Right [Line Items]
Interest rate					12.50%
Senior secured notes due 2025 \| Senior notes
Class of Warrant or Right [Line Items]
Interest rate					12.50%
13.5% Senior Secured Notes due November 1, 2028
Class of Warrant or Right [Line Items]
Interest rate		13.50%
13.5% Senior Secured Notes due November 1, 2028 \| Senior notes
Class of Warrant or Right [Line Items]
Interest rate			13.50%

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company has accounted for income taxes under the asset and liability method, which requires deferred tax assets and liabilities to be recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts and respective tax bases of existing assets and liabilities, as well as net operating loss carryforwards and research and development credits. Valuation allowances are provided if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. For the three months ended March 31, 2024, the effective income tax rate was 0%, and the Company recorded no income tax expense from its pretax loss of $12,828. For the three months ended March 31, 2023, the Company recorded no income tax from its pretax income of $8,068. The primary factors impacting the effective tax rate for three months ended March 31, 2024 is the anticipated full year pre-tax book loss, the expected utilization of net operating losses and research and development credits to offset current year tax liabilities, and a full valuation allowance against any associated net deferred tax assets.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

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(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

Other Non-current Assets - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) royalty_payment payment	Mar. 31, 2023 USD ($)	Jun. 30, 2020 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Revenues	$ 12,053	$ 11,134
Number of guaranteed royalty payments \| royalty_payment	8
License agreement with Sunovion Pharmaceuticals, Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Minimum annual royalty receivable	$ 1,000		$ 1,000
Number of annual royalty payments receivable \| payment	4
Royalty
Acquired Finite-Lived Intangible Assets [Line Items]
Revenues	$ (12)	$ (989)
Royalty \| License agreement with Sunovion Pharmaceuticals, Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Revenues			$ 8,000

Goodwill and Intangible Assets Disclosure [Abstract]

Condensed Statements of Changes in Stockholders' Deficit - USD ($) $ in Thousands	Total	Public Equity Offering - ATM	Public Equity Offering	Common Stock	Common Stock Public Equity Offering - ATM	Common Stock Public Equity Offering	Additional Paid-in Capital	Additional Paid-in Capital Public Equity Offering - ATM	Additional Paid-in Capital Public Equity Offering	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022				54,827,734
Beginning balance at Dec. 31, 2022	$ (118,554)			$ 55			$ 192,598			$ (311,207)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock issued under public equity offering (in shares)				1,078,622
Common Stock issued under public equity offering-ATM	993			$ 1			992
Costs of common stock issued under public equity offering-ATM	(77)						(77)
Share-based compensation expense	344						344
Vested restricted stock units (in shares)				16,005
Vested restricted stock units	(8)						(8)
Other	(1)						(1)
Net (loss) income	8,068									8,068
Ending balance (in shares) at Mar. 31, 2023				55,922,361
Ending balance at Mar. 31, 2023	(109,235)			$ 56			193,848			(303,139)
Beginning balance (in shares) at Dec. 31, 2022				54,827,734
Beginning balance at Dec. 31, 2022	(118,554)			$ 55			192,598			(311,207)
Ending balance (in shares) at Dec. 31, 2023				68,533,085
Ending balance at Dec. 31, 2023	(106,487)			$ 69			212,521			(319,077)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock issued under public equity offering (in shares)					4,557,220	16,666,667
Common Stock issued under public equity offering-ATM		$ 12,385	$ 75,000		$ 4	$ 17		$ 12,381	$ 74,983
Costs of common stock issued under public equity offering-ATM		$ (410)	$ (5,187)					$ (410)	$ (5,187)
Share-based compensation expense	1,580						1,580
Vested restricted stock units (in shares)				490,359
Vested restricted stock units	$ (893)						(893)
Options exercises, net (in shares)	231,400
Options exercised, net	$ 539
Net (loss) income	(12,828)									(12,828)
Ending balance (in shares) at Mar. 31, 2024				90,478,731
Ending balance at Mar. 31, 2024	$ (36,301)			$ 90			$ 295,514			$ (331,905)

Subsequent Events (Details) - USD ($)							1 Months Ended	3 Months Ended
Subsequent Events (Details) - USD ($)	Apr. 23, 2024	Apr. 22, 2024	Apr. 03, 2024	Mar. 22, 2024	Sep. 07, 2022	Sep. 11, 2019	Apr. 21, 2024	Mar. 31, 2023
Equity distribution agreement
Subsequent Event [Line Items]
Number of shares issued in transaction (in shares)								1,078,622
Consideration received on sale of stock								$ 916,000
Equity distribution agreement \| Maximum
Subsequent Event [Line Items]
Sale of stock, aggregate offering price					$ 35,000	$ 25,000,000
Over-Allotment Option \| Maximum
Subsequent Event [Line Items]
Sale of stock, aggregate offering price				$ 2,500,000
Subsequent event \| Amended Equity Distribution Agreement \| Maximum
Subsequent Event [Line Items]
Sale of stock, aggregate offering price			$ 250,000,000
Subsequent event \| Equity distribution agreement \| Maximum
Subsequent Event [Line Items]
Sale of stock, aggregate offering price	$ 100,000,000
Subsequent event \| Over-Allotment Option
Subsequent Event [Line Items]
Number of shares issued in transaction (in shares)		559,801					559,801
Consideration received on sale of stock		$ 77,500,000					$ 2,519,000

Revenues and Trade Receivables, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2023
Concentration Risk [Line Items]
Current and non-current contract assets	$ 700			$ 1,662
Contract liabilities	33,508			33,896
Capitalized contract cost, net	701			715
Contract with customer, asset, after allowance for credit loss, current	$ 1,635			$ 2,915
Maximum
Concentration Risk [Line Items]
Research and development, project duration	3 years
Revenue from Contract with Customer Benchmark \| Indivior \| Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	84.00%	77.00%
Revenue from Contract with Customer Benchmark \| Hypera \| Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk		14.00%
Receivables \| Indivior \| Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk	70.00%		65.00%
Receivables \| Zevra \| Customer concentration risk
Concentration Risk [Line Items]
Concentrations of risk			13.00%

Material Agreements	3 Months Ended
Material Agreements	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Material Agreements	Material Agreements Commercial Exploitation Agreement with Indivior In August 2008, the Company entered into the Indivior License Agreement (with subsequent amendments) with Reckitt Benckiser Pharmaceuticals, Inc. which was later succeeded to in interest by Indivior. Pursuant to the Indivior License Agreement, the Company agreed to manufacture and supply Indivior’s requirements for Suboxone®, a sublingual film formulation, both inside and outside the United States on an exclusive basis. Under the terms of the Indivior License Agreement, the Company is required to manufacture Suboxone in accordance with current Good Manufacturing Practice standards and according to the specifications and processes set forth in the related quality agreements the Company entered into with Indivior. Additionally, the Company is required to obtain API for the manufacture of Suboxone directly from Indivior. The Indivior License Agreement specifies a minimum annual threshold quantity of Suboxone that the Company is obligated to fill and requires Indivior to provide the Company with a forecast of its requirements at various specified times throughout the year. The Indivior License Agreement provides for payment by Indivior of an agreed upon purchase price per unit until January 1, 2025 and, thereafter, that is subject to annual adjustments based on changes in an agreed upon price index. In addition to the purchase price for the Suboxone supplied, Indivior is required to make certain single digit percentage royalty payments tied to net sales value (as provided for in the Indivior License Agreement) outside of the U.S., subject to annual maximum amounts and limited to the life of the related patents. The Indivior License Agreement contains customary contractual termination provisions, including with respect to a filing for bankruptcy or corporate dissolution, an invalidation of the intellectual property surrounding Suboxone, and commission of a material breach of the Indivior License Agreement by either party. Additionally, Indivior may terminate the Indivior License Agreement if the FDA or other applicable regulatory authority declares the Company’s manufacturing site to no longer be suitable for the manufacture of Suboxone or Suboxone is no longer suitable to be manufactured due to health or safety reasons. The initial term of the Indivior License Agreement was seven years from the commencement date. Thereafter, the Indivior License Agreement automatically renewed for successive one year periods. Effective as of March 2, 2023, the Company and Indivior entered into the Indivior Agreement to the Indivior License Amendment. The Indivior Amendment was entered into for the primary purpose of amending the Agreement as follows: (i) extending the term of the Agreement until August 16, 2026 and thereafter providing for automatic renewal terms of successive one year periods unless Indivior delivers notice to the Company, at least twelve months prior to the expiration of the then current term, of Indivior’s intent not to renew, subject to the earlier termination rights of the parties under the Agreement, and providing that the Agreement will not automatically renew for any renewal term beginning after the expiration of the last to expire of the product patents covered under the Indivior License Agreement; and (ii) agreeing to transfer pricing and payment terms for supplied product under the Indivior License Agreement. During the three months ended March 31, 2023, in consideration of the agreements between the parties, the Company received a payment of $11,482 from Indivior, of which amount $5,482 represented: (a) payment of the portion of a 2022 price increase that had not been previously paid and (b) an estimated payment in 2023 for certain price increases. During the three months ended March 31, 2023, the Company recognized $2,230, of which $1,682 was related to the 2022 price increases, in Manufacture and supply revenue and $6,000 in Interest income and other income, net on the Condensed Statements of Operations and Comprehensive (Loss) Income. As of December 31, 2023, the $5,482 price increase had been fully recognized in Manufacture and supply revenue; there were no retroactive price adjustments included in Manufacture and supply revenue for the three months ended March 31, 2024. Supplemental Agreement with Indivior On September 24, 2017, the Company entered into an agreement with Indivior, or the Indivior Supplemental Agreement. Pursuant to the Indivior Supplemental Agreement, the Company conveyed to Indivior all existing and future rights in the settlement of various ongoing patent enforcement legal actions and disputes related to the Suboxone product. The Company also conveyed to Indivior the right to sublicense manufacturing and marketing capabilities to enable an Indivior licensed generic buprenorphine product to be produced and sold by parties unrelated to Indivior or Aquestive. Under the Indivior Supplemental Agreement, the Company was entitled to receive certain payments from Indivior commencing on the date of the Indivior Supplemental Agreement through January 1, 2023. Once paid, all payments made under the Indivior Supplemental Agreement are non-refundable. Through February 20, 2019, the at-risk launch date of the competing generic products of Dr. Reddy’s Labs and Alvogen, the Company received an aggregate of $40,750 from Indivior under the Indivior Supplemental Agreement. Further payments under the Indivior Supplemental Agreement were suspended until adjudication of related patent infringement litigation is finalized. No further payments are due to the Company under the Indivior Supplemental Agreement. See Note 19, Contingencies for details. All payments made by Indivior to the Company pursuant to the Indivior Supplemental Agreement were in addition to, and not in place of, any amounts owed by Indivior to the Company pursuant to the Indivior License Agreement. License Agreement with Sunovion Pharmaceuticals, Inc. On April 1, 2016, the Company entered into a license Agreement with Cynapsus Therapeutics Inc. (which was later succeeded to in interest by Sunovion), referred to as the Sunovion License Agreement, pursuant to which Sunovion obtained an exclusive, worldwide license (with the right to sub-license) to certain intellectual property, including existing and future patents and patent applications, covering all oral films containing apomorphine for the treatment of off episodes in Parkinson’s disease patients. Sunovion used this intellectual property to develop its apomorphine product KYNMOBI®, which was approved by the FDA on May 21, 2020. This approval triggered Sunovion’s obligation to remit a payment of $4,000, due on the earlier of: (a) the first day of product availability at a pharmacy in the United States; or (b) within six months of FDA approval of the product. This amount was received as of September 30, 2020 and was included in License and royalty revenues for the twelve months ended December 31, 2020. Effective March 16, 2020, the Company entered into the First Amendment to the Sunovion License Agreement. The Amendment was entered into for the primary purpose of amending the Sunovion License Agreement as follows: (i) including the United Kingdom and any other country currently in the EU which later withdraws as a member country in the EU for purpose of determining the satisfaction of the condition triggering the obligation to pay the third milestone due under the Sunovion License Agreement, (ii) extending the date after which Sunovion has the right to terminate the Sunovion License Agreement for convenience from December 31, 2024 to March 31, 2028, (iii) modifying the effective inception date of the first minimum annual royalty due from Sunovion to the Company form January 1, 2020 to April 1, 2020, and (iv) modifying the termination provision to reflect the Company’s waiver of the right to terminate the Sunovion License Agreement in the event that KYNMOBI was not commercialized by January 1, 2020. This Sunovion License Agreement will continue until terminated by Sunovion in accordance with the termination provisions of the Amendment to the Sunovion License Agreement. The Sunovion License Agreement continues (on a country-by-country basis) until the expiration of all applicable licensed patents unless earlier terminated under the termination provisions contained therein. Upon termination of the Sunovion License Agreement, all rights to intellectual property granted to Sunovion to develop and commercialize apomorphine-based products will revert to the Company. On October 23, 2020, the Company amended the Sunovion License Agreement to clarify the parties' agreement with respect to certain provisions in the Sunovion License Agreement, specifically the date after which Sunovion has the right to terminate the Sunovion License Agreement and the rights and obligations of the parties regarding the prosecution and maintenance of the Company’s patents covered under the Sunovion License Agreement. In consideration of the rights granted to Sunovion under the Sunovion License Agreement, the Company received aggregate payments totaling $22,000 to date. In addition to the upfront payment of $5,000, the Company has also earned an aggregate of $17,000 in connection with specified regulatory and development milestones in the United States and Europe (the “Initial Milestone Payments”), all of which have been received to date. With the Monetization Agreement (defined below) entered into on November 3, 2020 relating to KYNMOBI as described in the paragraph below, the Company is no longer entitled to receive any payments under the Sunovion License Agreement. Purchase and Sale Agreement with an affiliate of Marathon On November 3, 2020, the Company entered into the Monetization Agreement with Marathon. Under the terms of the Monetization Agreement, the Company sold to Marathon all of its contractual rights to receive royalties and milestone payments due under the Sunovion License Agreement related to Sunovion’s apomorphine product, KYNMOBI. In exchange for the sale of these rights, the Company received an upfront payment from Marathon of $40,000 and an additional payment of $10,000 through the achievement of the first milestone. The Company has received an aggregate amount of $50,000 through March 31, 2024 under the Monetization Agreement. Under the Monetization Agreement, additional contingent payments of up to $75,000 may be due to the Company upon the achievement of worldwide royalty and other commercial targets within a specified timeframe, which could result in total potential proceeds of $125,000. In June 2023, Sunovion announced that it had voluntarily withdrawn KYNMOBI from the U.S. and Canadian markets; therefore, the Company likely will not receive any of the additional contingent payments under the Monetization agreement. See Note 15, Sale of Future Revenue for further details on the accounting for the Monetization Agreement. Agreement to Terminate CLA with Zevra Therapeutics, Inc. (formerly KemPharm) In March 2012, the Company entered into an agreement with Zevra to terminate a Collaboration and License Agreement entered into by the Company and Zevra in April 2011. Under this termination arrangement, the Company has the right to participate in any and all value that Zevra may derive from the commercialization or any other monetization of Zevra’s KP-415 and KP-484 compounds or their derivatives. Among these monetization transactions are those related to any business combinations involving Zevra and collaborations, royalty arrangements, or other transactions from which Zevra may realize value from these compounds or their derivatives. Licensing and Supply Agreement with Haisco for Exservan™ (Riluzole Oral Film) for ALS Treatment in China The Company entered into the Haisco Agreement with Haisco, a Chinese limited company listed on the Shenzhen Stock Exchange, effective as of March 3, 2022, pursuant to which Aquestive granted Haisco an exclusive license to develop and commercialize Exservan™ (riluzole oral film) for the treatment of ALS in China. Under the terms of the Haisco Agreement, Aquestive is the exclusive sole manufacturer and supplier for Exservan in China. Under the Haisco Agreement, as amended, the Company received a $7,000 upfront cash payment in September 2022, and is entitled to receive regulatory milestone payments and double-digit royalties on net sales of Exservan in China and earn manufacturing revenue upon the sale of Exservan in China. The Company has learned that Haisco announced that it intended to voluntarily withdraw the application for approval of Exservan in China. As a result, the Company expects that the Haisco Agreement will be terminated and the Company will not receive any contingent payments under the Haisco Agreement. The expected termination may have a positive impact on the Company's 2024 financial results due to recognition of deferred revenue for the $7.0 million upfront payment received by the Company in September 2022, but the specific impact has yet to be quantified by the Company. The expected termination of the Haisco Agreement will not have a material impact on the Company’s condensed financial statements for the year end 2024. Compensatory Arrangements of Certain Officers On May 17, 2022, the Company announced that Keith J. Kendall, former President and Chief Executive Officer of the Company, was leaving the Company and the Company’s Board of Directors, effective May 17, 2022. In connection with his departure, Mr. Kendall and the Company entered into a Separation Agreement, including a Consulting Agreement, dated as of May 17, 2022. Under the Separation Agreement, in addition to other severance benefits already received by Mr. Kendall in 2022, Mr. Kendall received a monthly severance payment for eighteen months following the Termination Date, or November 22,2023. During the first quarter of 2023, net severance payments made to Mr. Kendall totaled approximately $274. By the end of December 31, 2023, all payments due to Mr. Kendall were made. Licensing and Supply Agreement with Atnahs Pharma UK Limited The Company entered into the Pharmanovia Agreement, effective as of September 26, 2022, pursuant to which the Company granted Pharmanovia an exclusive license to certain of the Company’s intellectual property to develop and commercialize Libervant™ (diazepam) Buccal Film for the treatment of prolonged or acute, convulsive seizures in all ages in the Territory during the term of the Pharmanovia Agreement. Under the Pharmanovia Agreement, Pharmanovia will lead the regulatory and commercialization activities for Libervant in the Territory and the Company will serve as the exclusive sole manufacturer and supplier of Libervant in the Territory. Pursuant to the Pharmanovia Agreement, the Company received $3,500 upon agreement execution and, upon the occurrence of certain conditions set forth in the Pharmanovia Agreement, will receive additional milestone payments and profit shares, as well as manufacturing fees and royalty fees through the expiration of the Pharmanovia Agreement. Effective March 27, 2023, the Company amended the Pharmanovia Agreement to expand the scope of territory for the license of Libervant to cover the rest of the world, excluding the U.S., Canada and China. Under the Pharmanovia Amendment, Pharmanovia will be responsible for seeking applicable regulatory approval in the expanded territories, which includes Latin America, Africa and Asia Pacific. Pursuant to the terms of the Pharmanovia Amendment, the Company received a non-refundable payment of $2,000 from Pharmanovia in connection with the execution of the Pharmanovia Amendment. Licensing Agreement with Assertio Holdings, Inc. Effective as of October 26, 2022, the Company entered into the Assertio Agreement to license Sympazan® (clobazam) oral film for the adjunctive treatment of seizures associated with Lennox‐Gastaut syndrome in patients aged two years of age and older. Under the terms of the Assertio Agreement, the Company granted to Assertio an exclusive, worldwide license of its intellectual property for Sympazan during the term of the Assertio License Agreement for an upfront payment of $9,000. In addition, Aquestive received a $6,000 milestone payment subsequent to Aquestive’s receipt of a notice of allowance from the PTO of the Company’s patent application U.S. Serial No. 16/561,573, and payment by the Company of the related allowance fee. The Company received the notice of allowance from the PTO and paid the related allowance fee on October 27, 2022. Further, under the Assertio Agreement, the Company will receive royalties from Assertio for the sale of the product through the expiration of the Assertio Agreement. The Company also entered into a long-term supply agreement with Assertio for Sympazan pursuant to which the Company is the exclusive sole worldwide manufacturer and supplier of the product and will receive manufacturing fees from Assertio for the product through the expiration of such supply agreement.

Intangible Assets, Net

3 Months Ended

Mar. 31, 2024

Intangible Assets, Net

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


	March 31, 2024		December 31, 2023
Purchased intangible	$	3,858	$	3,858
Purchased patent	509		509
	4,367		4,367
Less: accumulated amortization	(3,128)		(3,089)
Intangible assets, net	$	1,239	$	1,278

Amortization expense was $39 for each of the three-month periods ended March 31, 2024 and 2023. During the remaining life of the purchased intangible assets, estimated amortization expense is $118 for the remainder of 2024 and $157 in 2025, respectively.

Revenues and Trade Receivables, Net - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	$ 12,053	$ 11,134
United States
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	10,427	8,165
Ex-United States
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	$ 1,626	$ 2,969

Revenues and Trade Receivables, Net - Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Trade receivables	$ 6,703	$ 5,570
Contract with customer, asset, after allowance for credit loss, current	1,635	2,915
Less: allowance for doubtful accounts	(14)	(14)	$ (40)
Trade and other receivables, net	$ 8,324	$ 8,471

Intangible Assets, Net - Components of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 4,367	$ 4,367
Less: accumulated amortization	(3,128)	(3,089)
Intangible assets, net	1,239	1,278
Purchased intangible
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	3,858	3,858
Purchased patent
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 509	$ 509

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net (loss) income	$ (12,828)	$ 8,068

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

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 47,092	$ 47,063
Less: accumulated depreciation and amortization	(43,046)	(42,884)
Total property and equipment, net	4,046	4,179
Machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 20,248	20,248
Machinery \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Machinery \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	15 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 769	769
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	15 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,386	21,386
Computer, network equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,627	2,627
Computer, network equipment and software \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Computer, network equipment and software \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	7 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,062	$ 2,033

Sale of Future Revenue

3 Months Ended

Mar. 31, 2024

Sale of Future Revenue

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

the achievement of the first milestone. The Company has received an aggregate amount of $50,000 through March 31, 2024 under the Monetization Agreement.

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

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

As royalties are remitted to Marathon from Sunovion, the collection of the royalty receivable and balance of the liability related to the sale of future revenue will be effectively repaid over the life of the agreement. In order to determine the amortization of the liability related to the sale of future revenue, the Company is required to estimate the total amount of future royalty and milestone payments to Marathon over the life of the Monetization Agreement and contingent milestone payments from Marathon to the Company. The sum of future royalty payments less the $50,000 in proceeds received and future contingent payments has been recorded as interest expense over the life of the Monetization Agreement. At execution, the estimate of this total interest expense resulted in an effective annual interest rate of approximately 24.9%. This estimate contained significant assumptions that impact both the amount recorded at execution and the interest expense that will be recognized over the life of the Monetization Agreement. The Company will periodically assess the estimated royalty and milestone payments to Marathon from Sunovion and contingent milestone payments from Marathon to the Company. To the extent the amount or timing of such payments is materially different from the original estimates, an adjustment will be recorded prospectively to increase or decrease interest expense. There are a number of factors that could materially affect the amount and timing of royalty and milestone payments to Marathon from Sunovion and, correspondingly, the amount of interest expense recorded by the Company, most of which are not under the Company’s control. Such factors include, but are not limited to, changing standards of care, the initiation of competing products, manufacturing or other delays, generic competition, intellectual property matters, adverse events that result in government health authority imposed restrictions on the use of products, significant changes in foreign exchange rates as the royalties remitted to Marathon are made in U.S. dollars (USD) while a portion of the underlying sales of KYNMOBI will be made in currencies other than USD, and other events or circumstances that are not currently foreseen. Changes to any of these factors could result in increases or decreases to both royalty revenue and interest expense related to the sale of future revenue.

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

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


	March 31,		December 31,
	2024		2023
Liability related to the sale of future revenue, net at beginning of the period	$	64,490	$	65,259
Royalties related to the sale of future revenue	(12)		(989)
Amortization of issuance costs	58		220

Liability related to the sale of future revenue, net at end of the period (includes current portion of $910 and $922, respectively)	$	64,536	$	64,490

Revenues and Trade Receivables, Net - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 12,053	$ 11,134
Manufacture and supply revenue
Disaggregation of Revenue [Line Items]
Revenues	10,518	9,762
License and royalty revenue
Disaggregation of Revenue [Line Items]
Revenues	1,132	919
Co-development and research fees
Disaggregation of Revenue [Line Items]
Revenues	$ 403	$ 453

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.

Goodwill and Intangible Assets Disclosure [Abstract]

Other Non-current Assets

3 Months Ended

Mar. 31, 2024

Other Non-current Assets

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


	March 31, 2024		December 31, 2023
Royalty receivable	$	4,000	$	4,000
Other	1,417		1,438
Total other non-current assets	$	5,417	$	5,438

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

Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Identifiable Intangible Assets

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


	March 31, 2024		December 31, 2023
Purchased intangible	$	3,858	$	3,858
Purchased patent	509		509
	4,367		4,367
Less: accumulated amortization	(3,128)		(3,089)
Intangible assets, net	$	1,239	$	1,278

Inventories

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventories

The components of Inventory are as follows:


	March 31, 2024		December 31, 2023
Raw material	$	3,043	$	2,118
Packaging material	2,874		3,028
Finished goods	1,817		1,623
Total inventory	$	7,734	$	6,769

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 03, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38599
Entity Registrant Name	Aquestive Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	30 Technology Drive
Entity Address, City or Town	Warren
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07059
Entity Tax Identification Number	82-3827296
City Area Code	908
Local Phone Number	941-1900
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	AQST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		91,038,532
Entity Central Index Key	0001398733
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Right-of-Use Assets and Lease Obligations - Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
Remainder 2023	$ 926
2025	1,266
2026	1,300
2027	1,328
2028 and thereafter	4,990
Total future lease payments	9,810
Less: imputed interest	(4,112)
Total operating lease liabilities	$ 5,698

Long-Term Debt - Narrative (Details) $ / shares in Units, $ in Thousands				3 Months Ended			12 Months Ended
	Nov. 01, 2023 USD ($)	Nov. 03, 2020 USD ($) noteholder shares	Jul. 15, 2019 USD ($) $ / shares shares	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	May 15, 2023 USD ($)	Dec. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	May 15, 2022 quarterlyInstallment	Dec. 31, 2020 USD ($) transaction
Debt Instrument [Line Items]
Warrants issued (in shares) \| shares			2,000,000
Warrant exercise price (in dollars per share) \| $ / shares			$ 0.001
Net proceeds from issuance of initial notes, warrants and first offer rights			$ 66,082
Total outstanding notes				$ 45,000
Consent fee payment				0		$ 1,027
Amortization of debt issuance costs and discounts				2,673		56
Put Option
Debt Instrument [Line Items]
Unrealized gain (loss) on derivatives				$ 13
Senior notes
Debt Instrument [Line Items]
Proceeds from issuance of debt		$ 4,000
Payments of loan costs		$ 220
Senior secured notes due 2025
Debt Instrument [Line Items]
Interest rate			12.50%
Principal amount	$ 36,014
Warrants issued to purchase common stock (in shares) \| shares		143,000
Redemption percentage of debt under change of control provisions				101.00%
Amortization of debt issuance costs and discounts						$ 4
Senior secured notes due 2025 \| Put Option
Debt Instrument [Line Items]
Derivative liability, noncurrent				$ 58
Senior secured notes due 2025 \| Maximum
Debt Instrument [Line Items]
Elective redemption percentage of debt				112.50%
Senior secured notes due 2025 \| Minimum
Debt Instrument [Line Items]
Elective redemption percentage of debt			101.56%
Senior secured notes due 2025 \| Senior notes
Debt Instrument [Line Items]
Interest rate			12.50%
Principal amount			$ 70,000
Retirement of debt		$ 22,500			$ 9,086
Total outstanding notes		70,000									$ 51,500
Proceeds from issuance of debt		$ 4,000
Number of noteholders \| noteholder		2
Number of transactions \| transaction											2
Premium on early retirement of debt		$ 2,250		$ 2,250
Repurchase price percentage		112.50%
Consent fee payment					$ 353		$ 2,700
Number of quarterly installments \| quarterlyInstallment										4
Fee amount									$ 675
Senior secured notes due 2025 \| Senior notes \| Maximum
Debt Instrument [Line Items]
Principal amount			$ 100,000
Percentage of cash proceeds		30.00%
13.5% Senior Secured Notes due November 1, 2028
Debt Instrument [Line Items]
Interest rate				13.50%
13.5% Senior Secured Notes due November 1, 2028 \| Senior notes
Debt Instrument [Line Items]
Interest rate	13.50%
Principal amount	$ 45,000
Repurchase price percentage	108.50%
Fee amount				$ 2,000
Proceeds from issuance of long-term debt	$ 4,326
Unamortized discount, including exit fee				16,408				$ 17,665
13.5% Senior Secured Notes due November 1, 2028 \| Senior notes \| Redemption Scenario 1
Debt Instrument [Line Items]
Repurchase price percentage	100.00%
Debt instrument, redemption price, percentage of principal amount redeemed	1.00%
13.5% Senior Secured Notes due November 1, 2028 \| Senior notes \| Redemption Scenario 2
Debt Instrument [Line Items]
Repurchase price percentage	108.50%
13.5% Senior Secured Notes due November 1, 2028 \| Senior notes \| US Treasury (UST) Interest Rate \| Redemption Scenario 1
Debt Instrument [Line Items]
Debt instrument, redemption price, basis points above treasury rate	1.00%
Royalty Obligations
Debt Instrument [Line Items]
Royalty obligation, term	8 years
Amortization of debt discount (premium)				1,358
Royalty Obligations \| Maximum
Debt Instrument [Line Items]
Royalty obligation, percent of net sales	2.00%
Royalty Obligations \| Minimum
Debt Instrument [Line Items]
Royalty obligation, percent of net sales	1.00%
Royalty Obligations \| Senior notes
Debt Instrument [Line Items]
Debt instrument, exit fee	$ 2,000
Fair value	13,856			13,856
Unamortized discount (premium), net	1,125							13,856
Amortization of debt discount (premium)				1,257
Unamortized deferred debt issuance cost and deferred debt discounts	20,498
Debt issuance costs, net	3,517
Royalty Obligations \| Unsecured Debt
Debt Instrument [Line Items]
Total outstanding notes				16,119				14,761
Unamortized discount, including exit fee				$ 40,807				$ 42,165
ABL Facility
Debt Instrument [Line Items]
Line of credit facility, accordion feature, net revenue threshold	100
Line of credit facility, accordion feature, increase limit	$ 10

Share-Based Compensation - Valuation Assumptions for Determination of Fair Value of Options (Details) - Stock options	3 Months Ended
	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%
Expected volatility	104.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years 1 month 6 days
Risk-free interest rate	4.10%

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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