Eton Pharmaceuticals Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Eton Pharmaceuticals (Nasdaq: ETON) reported Q1 2026 net revenue and product sales of $24.3 million, with product sales up 73% year-over-year. GAAP diluted EPS was $0.05, non-GAAP EPS $0.14, and Adjusted EBITDA $5.7 million (24% margin).
The company raised 2026 revenue guidance to more than $120 million and targets at least a 30% Adjusted EBITDA margin. Eton launched FDA-approved DESMODA, acquired and relaunched HEMANGEOL, initiated the ET-700 trial, advanced KHINDIVI label expansion, and received FDA clearance for an INCRELEX label harmonization study.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 product sales rose 73% to $24.3 million
- Total Q1 2026 net revenue grew 40% year-over-year to $24.3 million
- 2026 revenue guidance raised to over $120 million from $110 million
- Q1 2026 Adjusted EBITDA of $5.7 million, a 24% margin
- Q1 2026 GAAP net income of $1.6 million vs. prior-year loss
- Non-GAAP diluted EPS increased to $0.14 from $0.07 year-over-year
- FDA approval and launch of DESMODA, with estimated $30–50 million peak sales
- Acquisition and relaunch of HEMANGEOL U.S. rights for $14 million
- FDA clearance for INCRELEX label harmonization study, potentially lifting U.S. patient pool to ~1,000
- Initiation of ET-700 clinical trial; topline data expected in H2 2026
- Ongoing KHINDIVI label expansion study, with potential approval targeted for Q2 2027
- Q1 2026 operating cash flow of $7.4 million; cash balance of $19.7 million
Negative
- Adjusted gross margin declined to 67% from 69% year-over-year
- Q1 2026 R&D expenses increased to $1.9 million from $1.2 million
- Q1 2026 G&A expenses rose 13% to $10.4 million
- Adjusted G&A grew to $9.0 million from $7.3 million year-over-year
- $0.9 million of higher FDA annual product fees after loss of orphan fee exemption
- $14.0 million cash payment for U.S. HEMANGEOL rights reduced cash resources
Key Figures
Market Reality Check
Peers on Argus
ETON was up 3.74% with mixed peer action: EOLS up 4.51%, while KMDA, EBS, and AQST were modestly negative. Only ESPR appeared in momentum scanners, up 0.31%, indicating the move was company-specific rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 19 | Q4/FY 2025 results | Positive | +7.5% | Strong Q4 and full-year 2025 growth with revenue doubling vs 2024. |
| Nov 06 | Q3 2025 results | Positive | -11.7% | Q3 2025 product sales up 129% year-over-year with positive EBITDA. |
| Aug 07 | Q2 2025 results | Positive | +12.3% | Q2 2025 product sales up 108% and continued sequential growth streak. |
| May 13 | Q1 2025 results | Positive | +0.3% | Q1 2025 revenue growth with strong product sales and cash generation. |
| Mar 18 | Q4 2024 results | Positive | -4.0% | Record Q4 2024 product revenue and narrower net loss vs prior year. |
Earnings releases have generally been positive operationally, but price reactions have been mixed, with both strong gains and notable selloffs following solid growth updates.
Recent earnings history shows Eton delivering consistent growth. Prior updates highlighted record product sales, launches such as DESMODA and KHINDIVI, and expanding rare-disease assets, with Q4 2025 revenues of $21.3 million and full-year 2025 revenue of $80 million. Guidance then pointed to 2026 revenue above $110 million and Adjusted EBITDA margins over 30%. Today’s Q1 2026 results, featuring $24.3 million in product sales and raised 2026 revenue guidance above $120 million, continue that growth trajectory and build on the prior outlook.
Historical Comparison
Past earnings releases produced an average move of about 0.88%, with both rallies and selloffs after strong growth updates. This Q1 2026 report extends the same pattern of rising product sales and guidance upgrades within that established earnings framework.
Across recent earnings, Eton has progressed from record Q4 2024 revenue to full-year 2025 revenue of $80 million, then guided 2026 above $110 million, and now raises 2026 expectations beyond $120 million while adding launches like DESMODA and HEMANGEOL.
Market Pulse Summary
This announcement details a strong Q1 2026, with product sales of $24.3 million (73% growth), GAAP EPS of $0.05, non-GAAP EPS of $0.14, and Adjusted EBITDA of $5.7 million. Management raised 2026 revenue guidance to exceed $120 million and reiterated a focus on rare diseases with launches like DESMODA and HEMANGEOL. Investors may watch execution on label-expansion studies, commercialization of new assets, and the company’s ability to maintain targeted >30% Adjusted EBITDA margins.
Key Terms
non-gaap financial
adjusted ebitda financial
fda approval regulatory
orphan program fee exemption regulatory
bioequivalence study medical
adjusted gross margin financial
AI-generated analysis. Not financial advice.
- Q1 2026 product sales of
$24.3 million , representing73% growth over Q1 2025 - Raising full year revenue guidance - now expect 2026 revenue to exceed
$120 million , up from previous guidance of$110 million - Q1 2026 fully diluted GAAP EPS of
$0.05 , non-GAAP fully diluted EPS of$0.14 , and Adjusted EBITDA of$5.7 million - Received FDA approval for and launched DESMODA™
- Acquired and relaunched HEMANGEOL®
- Announced initiation of ET-700 clinical study, the Company’s extended-release formulation of zinc acetate
- Received FDA clearance to proceed on INCRELEX® label harmonization study
- Management to hold conference call today at 4:30pm ET
DEER PARK, Ill., May 14, 2026 (GLOBE NEWSWIRE) -- Eton Pharmaceuticals, Inc (“Eton” or “the Company”) (Nasdaq: ETON), an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases, today reported financial results for the quarter ended March 31, 2026.
“With record Q1 products sales and two major product launches already underway this year, Eton is off to a terrific start in 2026. Based on this strong year-to-date performance, we are raising our full year 2026 revenue guidance. We now expect more than
“First quarter product sales grew
“We have also made tremendous progress with the R&D programs in our pipeline. We initiated a clinical study for the KHINDIVITM label expansion, saw the start of the ET-700 pilot study, and received FDA clearance to proceed with our INCRELEX label harmonization study, which we intend to initiate later this year. These critical programs should fuel long-term growth, and propel us towards our goal of building the largest rare disease portfolio in the United States” concluded Brynjelsen.
First Quarter and Recent Business Highlights
Acquired and relaunched HEMANGEOL. Eton acquired U.S. rights to HEMANGEOL in the first quarter and relaunched the product on May 1st. Eton is now offering full Eton Cares patient support to all patients, including
Received FDA approval for and launched DESMODA. Within ten days of its February approval, Eton launched DESMODA with its existing team of pediatric endocrinology rare disease specialists. DESMODA is the first and only FDA-approved oral liquid formulation of desmopressin designed to support individualized dosing needs. Early feedback from healthcare providers has been exceptionally encouraging, with strong initial interest and early adoption across key centers. The product is expected to contribute significantly to the Company’s long-term growth trajectory, with peak sales estimated to reach
Received clearance from FDA to proceed with INCRELEX label harmonization study. During the first quarter, Eton received clearance from FDA to proceed with its proposed label harmonization study. This study is designed to support an application to broaden the U.S. FDA approved definition of severe primary IGF-1 deficiency (SPIGFD) to match the E.U. definition. If successful, it is estimated that the change would increase the addressable population in the U.S. to approximately 1,000 patients compared to the estimated 200 patients under the current indication. The Company expects to commence the study in the second half of 2026.
Clinical study initiated for product candidate ET-700, Eton’s extended-release formulation of zinc acetate. Last month, the first patient was dosed in a pilot clinical study assessing the efficacy of ET-700. The study, which is being conducted by the Department of Hepatology and Gastroenterology at Aarhus University Hospital in Denmark, is a double-blinded, placebo-controlled clinical trial that will compare ET-700 to GALZIN and a placebo for the treatment of Wilson disease. Topline study results are expected in the second half of 2026, and if positive, would lead to a pivotal clinical study in early 2027.
KHINDIVI label expansion study underway. The bioequivalence study of the Company’s revised KHINDIVI formulation is ongoing, and the Company expects to receive results by July. The results are intended to support Eton’s application to broaden the FDA approved indication for KHINDIVI beyond its current label of ages five and up. Eton intends to file the supplement in the third quarter of 2026, which could provide for a potential approval in the second quarter of 2027. The Company believes the expanded label will accelerate adoption of the product.
Guidance
The Company now expects 2026 revenues to exceed
First quarter Financial Results
Net Revenue: Total net revenue for the first quarter of 2026 was
Product sales and royalty revenue were
Gross Profit: Gross profit for the first quarter of 2026 was
Adjusted gross profit, which adjusts for the impact of acquired inventory step-up adjustments and intangible amortization, was
Research and Development (R&D) Expenses: R&D expenses for the first quarter of 2026 were
General and Administrative (G&A) Expenses: G&A expenses for the first quarter of 2026 were
Adjusted G&A expense, which removes share-based compensation, depreciation, transaction-related costs, and other one-time expenses, was
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA): Adjusted EBITDA for the first quarter of 2026 was
Net Income/Loss: Net income for the first quarter of 2026 was
On a non-GAAP basis, the Company reported net income of
For a reconciliation of GAAP net income/(loss) to Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA (“EBITDA”), Adjusted EBITDA and adjusted Non-GAAP basic and fully diluted earnings per share to the most directly comparable GAAP financial measure, please see the tables below.
Cash Position: As of March 31, 2026, the Company had cash and cash equivalents of
Conference Call and Webcast Information
As previously announced, Eton Pharmaceuticals will host its First Quarter 2026 conference call as follows:
| Date: | May 14, 2026 | |
| Time: | 4:30 p.m. ET (3:30 p.m. CT) | |
| Participant Call Link*: | Click Here | |
| Webcast: | Click Here | |
In addition to taking live questions from participants on the conference call, management will be answering emailed questions from investors. Investors can email questions to: investorrelations@etonpharma.com.
The live webcast can be accessed on the Investors section of Eton’s website at https://ir.etonpharma.com/. An archived webcast will be available on Eton’s website approximately two hours after the completion of the event and for 30 days thereafter.
* Conference call participants should register to obtain their dial-in and passcode details. Please be sure to register using a valid email address.
About Eton Pharmaceuticals
Eton is an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases. The Company currently has ten commercial rare disease products: KHINDIVI™, INCRELEX®, ALKINDI SPRINKLE®, DESMODA™, GALZIN®, HEMANGEOL®, PKU GOLIKE®, Carglumic Acid, Betaine Anhydrous, and Nitisinone. The Company has four additional product candidates in late-stage development: Amglidia®, ET-700, ET-800 and ZENEO® hydrocortisone autoinjector. For more information, please visit our website at www.etonpharma.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements associated with the expected ability of Eton to undertake certain activities and accomplish certain goals and objectives. These statements include but are not limited to statements regarding Eton’s business strategy, Eton’s plans to develop and commercialize its product candidates, the safety and efficacy of Eton’s product candidates, Eton’s plans and expected timing with respect to regulatory filings and approvals, and the size and growth potential of the markets for Eton’s product candidates. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Eton’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such drugs. These and other risks concerning Eton’s development programs and financial position are described in additional detail in Eton’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Eton undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures
In addition to the Company’s results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP), which are presented and discussed above, management also utilizes Adjusted EBITDA, an unaudited financial measure that is not calculated in accordance with GAAP, to evaluate the Company’s financial results and performance and to plan and forecast future periods. Adjusted EBITDA is considered a “non-GAAP” financial measure within the meaning of Regulation G promulgated by the SEC. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results, provides a more complete understanding of the Company’s results of operations and the factors and trends affecting its business. Management believes Adjusted EBITDA provides meaningful supplemental information regarding the Company’s performance because (i) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making; (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company’s core operating performance and that may obscure trends in the Company’s core operating performance; and (iii) it is used by institutional investors and the analyst community to help analyze the Company’s results. However, Adjusted EBITDA and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the way they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company’s competitors.
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income/(loss), excluding the effects of stock-based compensation and expenses, interest, taxes, depreciation, amortization, and, if any and when specified, other non-recurring income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net loss. Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net loss as a measure of operating performance or to net cash provided by (used in) operating, investing, or financing activities as a measure of ability to meet cash needs.
Investor Relations:
Lisa M. Wilson, In-Site Communications, Inc.
T: 212-452-2793
| Eton Pharmaceuticals, Inc. Condensed Statements of Operations (In thousands, except per share amounts) (Unaudited) | ||||||||
| For the three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Revenues: | ||||||||
| Licensing revenue | $ | — | $ | 3,286 | ||||
| Product sales and royalties, net | 24,266 | 13,996 | ||||||
| Total net revenues | 24,266 | 17,282 | ||||||
| Cost of sales: | ||||||||
| Licensing revenue | — | 825 | ||||||
| Product sales and royalties | 9,531 | 6,596 | ||||||
| Total cost of sales | 9,531 | 7,421 | ||||||
| Gross profit | 14,735 | 9,861 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,875 | 1,161 | ||||||
| General and administrative | 10,446 | 9,170 | ||||||
| Total operating expenses | 12,321 | 10,331 | ||||||
| Income (loss) from operations | 2,414 | (470 | ) | |||||
| Other expense: | ||||||||
| Interest and other expense, net | (840 | ) | (1,028 | ) | ||||
| Income (loss) before income tax expense | 1,574 | (1,498 | ) | |||||
| Income tax expense | 20 | 74 | ||||||
| Net income (loss) | $ | 1,554 | $ | (1,572 | ) | |||
| Net income (loss) per share, basic | $ | 0.06 | $ | (0.06 | ) | |||
| Weighted average number of common shares outstanding, basic | 27,285 | 26,886 | ||||||
| Net income (loss) per share, diluted | $ | 0.05 | $ | (0.06 | ) | |||
| Weighted average number of common shares outstanding, diluted | 31,547 | 26,886 | ||||||
| Eton Pharmaceuticals, Inc. Condensed Balance Sheets (In thousands, except share and per share amounts) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 19,661 | $ | 25,942 | ||||
| Accounts receivable, net | 13,408 | 11,757 | ||||||
| Inventories, net | 14,467 | 15,419 | ||||||
| Prepaid expenses and other current assets | 5,709 | 7,463 | ||||||
| Total current assets | 53,245 | 60,581 | ||||||
| Property and equipment, net | 372 | 326 | ||||||
| Intangible assets, net | 43,738 | 30,878 | ||||||
| Operating lease right-of-use assets, net | 301 | 310 | ||||||
| Other long-term assets, net | 54 | 19 | ||||||
| Total assets | $ | 97,710 | $ | 92,114 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,485 | $ | 10,976 | ||||
| Short-term debt, net of debt discount | 11,808 | 8,789 | ||||||
| Accrued Medicaid rebates | 11,140 | 9,317 | ||||||
| Accrued liabilities | 7,746 | 9,408 | ||||||
| Total current liabilities | 44,179 | 38,490 | ||||||
| Long-term debt, net of current portion and debt discount | 18,939 | 21,769 | ||||||
| Operating lease liabilities, net of current portion | 440 | 460 | ||||||
| Other long-term liabilities | 3,537 | 5,241 | ||||||
| Total liabilities | 67,095 | 65,960 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, | 27 | 27 | ||||||
| Additional paid-in capital | 141,528 | 138,621 | ||||||
| Accumulated deficit | (110,940 | ) | (112,494 | ) | ||||
| Total stockholders’ equity | 30,615 | 26,154 | ||||||
| Total liabilities and stockholders’ equity | $ | 97,710 | $ | 92,114 | ||||
| Eton Pharmaceuticals, Inc. Condensed Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
| For the three months ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Cash flows from (used in) operating activities | ||||||||
| Net income (loss) | $ | 1,554 | $ | (1,572 | ) | |||
| Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||
| Stock-based compensation | 1,518 | 1,200 | ||||||
| Depreciation and amortization | 1,131 | 1,013 | ||||||
| Inventory step-up | 350 | 1,142 | ||||||
| Excess and obsolete inventory reserve | 227 | 110 | ||||||
| Debt discount amortization and non-cash interest expense | 118 | 294 | ||||||
| Non-cash lease expense | 9 | 17 | ||||||
| Other operating activity | 7 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,651 | ) | (11,039 | ) | ||||
| Inventories | 1,406 | 358 | ||||||
| Prepaid expenses and other assets | 1,754 | 2,973 | ||||||
| Accounts payable | 2,508 | 705 | ||||||
| Accrued Medicaid rebates | 1,824 | 6,071 | ||||||
| Accrued liabilities | (1,532 | ) | (1,373 | ) | ||||
| Other non-current assets and liabilities | (1,818 | ) | 2,191 | |||||
| Net cash from operating activities | 7,405 | 2,090 | ||||||
| Cash flows used in investing activities | ||||||||
| Purchases of product license rights | (15,000 | ) | — | |||||
| Purchases of property and equipment | (75 | ) | — | |||||
| Net cash from used in investing activities | (15,075 | ) | — | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from stock option exercises | 1,389 | 394 | ||||||
| Net cash from financing activities | 1,389 | 394 | ||||||
| Change in cash and cash equivalents | (6,281 | ) | 2,484 | |||||
| Cash and cash equivalents at beginning of period | 25,942 | 14,936 | ||||||
| Cash and cash equivalents at end of period | $ | 19,661 | $ | 17,420 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid for interest | $ | 881 | $ | 642 | ||||
| Cash paid for income taxes | $ | 37 | $ | 8 | ||||
| Eton Pharmaceuticals, Inc. Adjusted non-GAAP EBITDA Calculation and US GAAP to Non-GAAP Reconciliation (in thousands, except per share amounts) (Unaudited) | ||||||||
| For the three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| GAAP Net income (loss) | $ | 1,554 | $ | (1,572 | ) | |||
| Depreciation (1) | 22 | 12 | ||||||
| Intangible amortization expense (2) | 1,109 | 1,001 | ||||||
| Interest expense (including debt discount amortization and non-cash interest expenses) | 1,136 | 1,163 | ||||||
| Income tax expense | 20 | 74 | ||||||
| EBITDA | $ | 3,841 | $ | 678 | ||||
| Other non-GAAP adjustments: | ||||||||
| Inventory step-up expense (3) | 350 | 1,142 | ||||||
| Stock-based compensation (4) | 1,518 | 1,200 | ||||||
| Severance expense (5) | — | 335 | ||||||
| Acquisition/divestiture-related costs (6) | — | 320 | ||||||
| Total of Other non-GAAP adjustments | 1,868 | 2,997 | ||||||
| Adjusted EBITDA | $ | 5,709 | $ | 3,675 | ||||
| GAAP Net income (loss) | $ | 1,554 | $ | (1,572 | ) | |||
| Non-GAAP adjustments: | ||||||||
| Depreciation (1) | 22 | 12 | ||||||
| Intangible amortization expense (2) | 1,109 | 1,001 | ||||||
| Inventory step-up expense (3) | 350 | 1,142 | ||||||
| Share-based compensation (4) | 1,518 | 1,200 | ||||||
| Severance expense (5) | — | 335 | ||||||
| Acquisition/divestiture-related costs (6) | — | 320 | ||||||
| Total pre-tax non-GAAP adjustments | 2,999 | 4,010 | ||||||
| Income tax effect of pre-tax non-GAAP adjustments (7) | 71 | 43 | ||||||
| Total non-GAAP adjustments | 2,928 | 3,967 | ||||||
| Non-GAAP Net Income | $ | 4,482 | $ | 2,395 | ||||
| Weighted average number of common shares outstanding, basic | 27,285 | 26,886 | ||||||
| Weighted average number of common shares outstanding, diluted | 31,547 | 31,017 | ||||||
| GAAP income (loss) per share - Basic | $ | 0.06 | $ | (0.06 | ) | |||
| Non-GAAP adjustments | 0.11 | 0.14 | ||||||
| Non-GAAP income per share - Basic | $ | 0.17 | $ | 0.08 | ||||
| GAAP income (loss) per share - Diluted | $ | 0.05 | $ | (0.06 | ) | |||
| Non-GAAP adjustments | 0.09 | 0.13 | ||||||
| Non-GAAP income per share - Diluted | $ | 0.14 | $ | 0.07 | ||||
| (1 | ) | Represents depreciation expense related to our property and equipment. |
| (2 | ) | Intangible amortization expenses are associated with the Company’s intellectual property rights related to INCRELEX®, HEMANGEOL®, GALZIN®, PKU GOLIKE®, Carglumic Acid, Betaine Anhydrous and Nitisinone. |
| (3 | ) | During the three months ended March 31, 2026 and 2025, the Company recognized in cost of sales |
| (4 | ) | Represents share-based compensation expense associated with the Company’s stock option and restricted stock unit grants to employees and non-employee directors and the Company’s employee share purchase plan. |
| (5 | ) | Represents severance and benefit expenses associated with role redundancy within commercial operations during the first quarter of 2025. |
| (6 | ) | Represents legal expense and other divestiture-related costs associated with the out-licensing of the INCRELEX® commercial rights in territories outside of the U.S. |
| (7 | ) | Income tax adjustments on pre-tax non-GAAP adjustments represent the estimated income tax impact of each pre-tax non-GAAP adjustment based on the effective income tax rate for the period. The Company is in a full income tax valuation allowance position and the income tax effect on pre-tax non-GAAP adjustments is commensurate with the performance measure. |
| Eton Pharmaceuticals, Inc. First Quarter 2026 GAAP to Non-GAAP Net Income (Loss) Reconciliation (in thousands) (Unaudited) | ||||||||||||||||||||||||||||
| First Quarter 2026 | GAAP | Depreciation and Intangible Amortization | Inventory Step-Up Expense | Stock Based Compensation | Severance Expense | Acquisition/ Divestiture Related Costs | Non- GAAP | |||||||||||||||||||||
| Cost of sales | $ | 9,531 | (1,109 | ) | (350 | ) | - | - | - | $ | 8,072 | |||||||||||||||||
| Research and development | 1,875 | - | - | (49 | ) | - | - | 1,826 | ||||||||||||||||||||
| General and administrative | 10,446 | (22 | ) | - | (1,469 | ) | - | - | 8,955 | |||||||||||||||||||
| Interest and other expense, net | 840 | - | - | - | - | - | 840 | |||||||||||||||||||||
| First Quarter 2025 | ||||||||||||||||||||||||||||
| Cost of sales | $ | 7,421 | (1,001 | ) | (1,142 | ) | - | - | - | $ | 5,278 | |||||||||||||||||
| Research and development | 1,161 | - | - | (39 | ) | - | - | 1,122 | ||||||||||||||||||||
| General and administrative | 9,170 | (12 | ) | - | (1,161 | ) | (335 | ) | (320 | ) | 7,342 | |||||||||||||||||
| Interest and other expense, net | 1,028 | - | - | - | - | - | 1,028 | |||||||||||||||||||||
