Aquestive Therapeutics Files Q3 2024 10-Q

TL;DR

AQST Q3 24 10-Q filed. Financials and ops update.

AI Summary

Aquestive Therapeutics, Inc. filed a 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial figures and strategic developments are presented, reflecting the company's ongoing activities in the pharmaceutical sector.

Why It Matters

This filing provides investors and stakeholders with a crucial update on Aquestive Therapeutics' financial health and operational progress for the third quarter of 2024.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Aquestive Therapeutics faces inherent risks related to drug development, regulatory approvals, and market competition.

Key Players & Entities

• Aquestive Therapeutics, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-11-04 (date) — Filing date
• Warren, NJ (location) — Company's business address

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share AQST NASDAQ Global Market S
• $100,000 — issued with private placement of up to $100,000 aggregate principal of 12.5% Notes orig
• $45,000 — ,000 shares of Common Stock Offering $45,000 aggregate principal amount of 13.5% Not
• $77,519 — ing Capital raise of gross proceeds of $77,519, including partial exercise of the unde
• $2,519 — xercise of the underwriters' option for $2,519 Zambon Zambon S.p.A. Zevra Zevra Th

Filing Documents

• aqst-20240930.htm (10-Q) — 1427KB
• aquestiveamendedandresta.htm (EX-3.2) — 75KB
• q32024ex311.htm (EX-31.1) — 11KB
• q32024ex312.htm (EX-31.2) — 11KB
• q32024ex321.htm (EX-32.1) — 6KB
• q32024ex322.htm (EX-32.2) — 6KB
• aquestiveamendedandresta001.jpg (GRAPHIC) — 251KB
• aquestiveamendedandresta002.jpg (GRAPHIC) — 310KB
• aquestiveamendedandresta003.jpg (GRAPHIC) — 325KB
• aquestiveamendedandresta004.jpg (GRAPHIC) — 331KB
• aquestiveamendedandresta005.jpg (GRAPHIC) — 356KB
• aquestiveamendedandresta006.jpg (GRAPHIC) — 317KB
• aquestiveamendedandresta007.jpg (GRAPHIC) — 318KB
• aquestiveamendedandresta008.jpg (GRAPHIC) — 274KB
• aquestiveamendedandresta009.jpg (GRAPHIC) — 277KB
• aquestiveamendedandresta010.jpg (GRAPHIC) — 262KB
• aquestiveamendedandresta011.jpg (GRAPHIC) — 283KB
• aquestiveamendedandresta012.jpg (GRAPHIC) — 258KB
• aquestiveamendedandresta013.jpg (GRAPHIC) — 331KB
• aquestiveamendedandresta014.jpg (GRAPHIC) — 189KB
• aquestiveamendedandresta015.jpg (GRAPHIC) — 95KB
• 0001628280-24-045030.txt ( ) — 14101KB
• aqst-20240930.xsd (EX-101.SCH) — 65KB
• aqst-20240930_cal.xml (EX-101.CAL) — 68KB
• aqst-20240930_def.xml (EX-101.DEF) — 386KB
• aqst-20240930_lab.xml (EX-101.LAB) — 741KB
• aqst-20240930_pre.xml (EX-101.PRE) — 577KB
• aqst-20240930_htm.xml (XML) — 1009KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Condensed Balance Sheets as of September 30, 2024 and December 31, 2023 5 Condensed Statements of Operations and Comprehensive (Loss) Income for the three and nine months ended September 30, 2024 and 2023 6 Condensed Statements of Changes in Stockholders' Deficit for the three and nine months ended September 30, 2024 and 2023 7 Condensed Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 9 Notes to Unaudited Condensed Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 50

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 51

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 51

Other Information

Item 5. Other Information 51

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 52 2 Table of Contents GLOSSARY OF TERMS, ABBREVIATIONS AND ACRONYMS The following terms, abbreviations and acronyms are used to identify frequently used terms and phrases that may be used in this report (dollar amounts in thousands): TERM DEFINITION 12.5% Notes 12.5% Senior Secured Notes due 2025 13.5% Notes 13.5% Senior Secured Notes ACAAI American College of Allergy Asthma and Immunology ABL facility Asset-based borrowing facility ADHD Attention deficit hyperactivity disorder Adrenaverse Epinephrine prodrug platform currently comprised of Anaphylm and AQST-108 ALS Amyotrophic lateral sclerosis ANVISA Brazilian Health Regulatory Agency API Active Pharmaceutical Ingredients Aquestive Aquestive Therapeutics, Inc. AQST NASDAQ ticker symbol for Aquestive Therapeutics, Inc. ASC Accounting Standards Codification Assertio Assertio Holdings, Inc. Assertio Agreement License Agreement between Aquestive and Otter Pharmaceuticals, LLC, a subsidiary of Assertio Holdings, Inc. ASU Accounting Standards Updates ATM facility At-The-Market facility for the purchase of AQST Common Stock, then in effect Base Indenture Indenture for the 12.5% Notes CMC Chemistry, Manufacturing, Controls CNS Central Nervous System Common Stock Common Stock, par value $0.001 per share, of the Company Common Stock Warrants Warrants issued with private placement of up to $100,000 aggregate principal of 12.5% Notes originally due 2025 Company Aquestive Therapeutics, Inc. CRO Contract research organization EMA European Medicines Agency ESPP Employee Stock Purchase Plan EU European Union Exchange Act Securities Exchange Act of 1934 Existing Warrants Common Stock Purchase Warrants with the holder of the remaining 5,000,000 warrants FASB Financial Accounting Standards Board FDA U.S. Food and Drug Administration First Amendment First amendment to the Sunovion License Agreement Fortovia Fortovia Therapeutics Inc.

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS (Unaudited)

Item 1. FINANCIAL STATEMENTS (Unaudited) AQUESTIVE THERAPEUTICS, INC. Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 77,893 $ 23,872 Trade and other receivables, net 9,684 8,471 Inventories 7,021 6,769 Prepaid expenses and other current assets 1,972 1,854 Total current assets 96,570 40,966 Property and equipment, net 3,848 4,179 Right-of-use assets, net 5,310 5,557 Intangible assets, net — 1,278 Other non-current assets 4,230 5,438 Total assets $ 109,958 $ 57,418 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 7,572 $ 8,926 Accrued expenses 5,025 6,497 Lease liabilities, current 482 390 Deferred revenue, current 1,048 1,551 Liability related to the sale of future revenue, current 1,000 922 Loans payable, current 25 22 Total current liabilities 15,152 18,308 Notes payable, net 31,253 27,508 Royalty obligations, net 18,835 14,761 Liability related to the sale of future revenue, net 62,730 63,568 Lease liabilities 5,109 5,399 Deferred revenue, net of current portion 20,266 32,345 Other non-current liabilities 2,033 2,016 Total liabilities 155,378 163,905 Contingencies (Note 19) Stockholders' deficit: Common stock, $ 0.001 par value. Authorized 250,000,000 shares; 91,178,193 and 68,533,085 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 91 69 Additional paid-in capital 300,648 212,521 Accumulated deficit ( 346,159 ) ( 319,077 ) Total stockholders' deficit ( 45,420 ) ( 106,487 ) Total liabilities and stockholders' deficit $ 109,958 $ 57,418 See accompanying notes to the condensed financial statements. 5 Table of Contents AQUESTIVE THERAPEUTICS, INC. Condensed Statements of Operations and Comprehensive (Loss) Income (In thousands, except share and per share data amounts) (Unaudited) Three Months Ended September 30, Nine

View Full Filing

View this 10-Q filing on SEC EDGAR