TherapeuticsMD Announces Third Quarter 2023 Financial Results

TherapeuticsMD, Inc. (“TherapeuticsMD” or the “Company”) (NASDAQ: TXMD), a company that owns rights to pharmaceutical royalties, today reported financial results for the third quarter ended September 30, 2023.

“As the Company continues its transition into a royalty-based business, we remain committed to cost control to maximize the value of our royalty assets,” stated Marlan D. Walker, Chief Executive Officer of TherapeuticsMD.

Third Quarter 2023 Financial Results

Net Loss from Continuing Operations

• Net loss from continuing operations was $1.4 million for the quarter ended September 30, 2023, or $0.13 per basic and diluted common share, compared to a net loss from continuing operations of $14.6 million, or $1.58 per basic and diluted common share, for the comparable period in 2022.

License and Service Revenues from Continuing Operations

• License and service revenues from continuing operations, which are revenues related to license agreements, were $(0.1) million for the quarter ended September 30, 2023, compared to $0.4 million in license and service revenue related to sales to another licensee for the third quarter of 2022.
• Gross royalties totaled $1.2 million and $3.3 million for the three- and nine-month periods ended September 30, 2023, respectively, and are recognized in license and service revenues and other income. Included in these amounts are $0.8 million and $2.3 million of gross minimum royalty payments due under the Mayne License Agreement for the three- and nine-month periods ended September 30, 2023, respectively. The gross minimum royalty payments were accounted for as fixed consideration at net present value and allocated to the sale of our licensed products in 2022. In the current periods, the Company recognizes income only on amounts in excess of the minimum royalty amounts earned under the Mayne License Agreement. The Company’s total royalty derived gross income of $0.4 million and $1.0 million for the three- and nine-month periods ended September 30, 2023, respectively, was reduced by approximately $0.4 million in the third quarter due to product sales adjustments reported by our licensed partners, resulting in total net royalty income of less than $0.1 million in the quarter ended September 30, 2023. Our net royalty income amounts are allocated and reported in license and service revenue and other income based on the proportion of the sales from each of our licensed products. Based on sales of licensed products, the Company recognized approximately ($0.1) million in license and service revenues and approximately $0.1 million in other income in the three-month period ended September 30, 2023 relating to royalties.

Total Operating Expenses from Continuing Operations