Amphastar Pharmaceuticals, Inc. [AMPH] Filings

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Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

10-Q 1 amph-20240630x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

⌧	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024

◻	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-36509

AMPHASTAR PHARMACEUTICALS, INC.

(Exact name of Registrant as specified in its charter)

Delaware

33-0702205

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)


11570 6^th Street
Rancho Cucamonga, CA		91730
(Address of principal executive offices)		(zip code)

(909) 980-9484

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

Securities registered pursuant to Section 12(b) of the Act:

The number of shares outstanding of the registrant’s only class of common stock as of August 2, 2024 was 48,675,822.

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

TABLE OF CONTENTS

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024

Special Note About Forward-Looking Statements





Part I. FINANCIAL INFORMATION
		PAGE
Item 1. Financial Statements (unaudited):
Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023		1
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023		2
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023		3
Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2024 and 2023		4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023		5
Notes to Condensed Consolidated Financial Statements		6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
Item 3. Quantitative and Qualitative Disclosure about Market Risk		43
Item 4. Controls and Procedures		43
Part II. OTHER INFORMATION
Item 1. Legal Proceedings		45
Item 1A. Risk Factors		45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		46
Item 3. Defaults Upon Senior Securities		46
Item 4. Mine Safety Disclosures		46
Item 5. Other Information		46
Item 6. Exhibits		47
Signatures		48

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SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or Quarterly Report, contains “forward-looking statements” that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by the following words: “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these identifying words. Forward-looking statements relate to future events or future financial performance or condition and involve known and unknown risks, uncertainties and other factors that could cause actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements about:

●

our expectations regarding the sales and marketing of our products;

●

our expectations regarding our newly acquired product, BAQSIMI^®, including with respect to our ability to increase our revenues and derive certain benefits as a result of our acquisition of BAQSIMI^®;

●

our ability to successfully acquire and integrate assets, including our ability to integrate BAQSIMI^®;

●

our expectations regarding our manufacturing and production and the integrity of our supply chain for our products, including the risks associated with our single source suppliers;

●

our business and operations in general, including: adverse impacts of the Russia-Ukraine and Middle East conflicts and challenging macroeconomic conditions on our business, financial condition, operations, cash flows and liquidity;

●

our ability to attract, hire, and retain highly skilled personnel;

●

interruptions to our manufacturing and production as a result of natural catastrophic events or other causes beyond our control such as power disruptions, pandemics, wars, terrorist attacks or other events;

●

global, national and local economic and market conditions, specifically with respect to geopolitical uncertainty, including the Russia-Ukraine and Middle East conflicts, inflation and high interest rates;

●

the timing and likelihood of U.S. Food and Drug Administration, or FDA, approvals and regulatory actions on our product candidates, manufacturing activities and product marketing activities;

●

our ability to advance product candidates in our platforms into successful and completed clinical trials and our subsequent ability to successfully commercialize our product candidates;

●

cost and delays resulting from the extensive pharmaceutical regulations to which we are subject;

●

our ability to compete in the development and marketing of our products and product candidates;

●

our expectations regarding the business of our Chinese subsidiary, Amphastar Nanjing Pharmaceuticals, Ltd., or ANP;

●

the potential for adverse application of environmental, health and safety and other laws and regulations on our operations;

●

our expectations for market acceptance of our new products and proprietary drug delivery technologies, as well as those of our active pharmaceutical ingredient, or API, customers;

●

the effects of reforms in healthcare regulations and reductions in pharmaceutical pricing, reimbursement and coverage;

●

our expectations in obtaining insurance coverage and adequate reimbursement for our products from third-party payers;

●

the amount of price concessions or exclusion of suppliers adversely affecting our business;

●

variations in intellectual property laws, our ability to establish and maintain intellectual property protection for our products and our ability to successfully defend our intellectual property in cases of alleged infringement;

●

the implementation of our business strategies, product development strategies and technology utilization;

●

the potential for exposure to product liability claims;

●

our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions, divestitures or investments, including the anticipated benefits of such acquisitions, divestitures or investments;

●

our ability to expand internationally;

●

economic and industry trends and trend analysis;

●

our ability to remain in compliance with laws and regulations that currently apply or become applicable to our business both in the United States and internationally;

●

the impact of trade tariffs, export or import restrictions, or other trade barriers;

●

the impact of Patient Protection and Affordable Care Act (as amended) and other legislative and regulatory healthcare reforms in the countries in which we operate including the potential for drug price controls;

●

the impact of global and domestic tax reforms;

●

the timing for completion and the validation of the new construction at our ANP and Amphastar facilities;

●

the timing and extent of share buybacks; and

●

our financial performance expectations, including our expectations regarding our backlog, revenue, cost of revenue, gross profit or gross margin, operating expenses, including changes in research and development, sales and marketing and general and administrative expenses, and our ability to achieve and maintain future profitability.

Table of Contents

You should read this Quarterly Report and the documents that we reference elsewhere in this Quarterly Report completely and with the understanding that our actual results may differ materially from what we expect as expressed or implied by our forward-looking statements. In light of the significant risks and uncertainties to which our forward-looking statements are subject, you should not place undue reliance on or regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. We discuss many of these risks and uncertainties in greater detail in this Quarterly Report and in our Annual Report on Form 10-K for the year ended December 31, 2023, particularly in Item 1A. “Risk Factors.” These forward-looking statements represent our estimates and assumptions only as of the date of this Quarterly Report regardless of the time of delivery of this Quarterly Report, and such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Quarterly Report.

Unless expressly indicated or the context requires otherwise, references in this Quarterly Report to “Amphastar,” “the Company,” “we,” “our,” and “us” refer to Amphastar Pharmaceuticals, Inc. and our subsidiaries.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	June 30,		December 31,
	2024		2023
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	189,619	$	144,296
Restricted cash		235		235
Short-term investments		28,156		112,510
Restricted short-term investments		2,200		2,200
Accounts receivable, net		131,412		114,943
Inventories		122,411		105,833
Income tax refunds and deposits		667		526
Prepaid expenses and other assets		7,945		9,057
Total current assets		482,645		489,600

Property, plant, and equipment, net		287,999		282,746
Finance lease right-of-use assets		469		564
Operating lease right-of-use assets		32,104		32,333
Investment in unconsolidated affiliate		—		527
Goodwill and intangible assets, net		600,849		613,295
Long-term investments		9,944		14,685
Other assets		24,260		25,910
Deferred tax assets		53,252		53,252
Total assets	$	1,491,522	$	1,512,912

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	131,212	$	93,366
Accrued payments for BAQSIMI^®(see Note 3)		—		126,090
Income taxes payable		1,514		1,609
Current portion of long-term debt		249		436
Current portion of operating lease liabilities		3,996		3,906
Total current liabilities		136,971		225,407

Long-term reserve for income tax liabilities		6,066		6,066
Long-term debt, net of current portion and unamortized debt issuance costs		586,853		589,579
Long-term operating lease liabilities, net of current portion		29,483		29,721
Other long-term liabilities		18,803		22,718
Total liabilities		778,176		873,491
Commitments and contingencies
Stockholders’ equity:
Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding		—		—
Common stock: par value $0.0001; 300,000,000 shares authorized; 60,482,455 and 48,962,414 shares issued and outstanding, respectively, as of June 30, 2024 and 59,390,194 and 48,068,881 shares issued and outstanding, respectively, as of December 31, 2023		6		6
Additional paid-in capital		487,571		486,056
Retained earnings		490,394		409,268
Accumulated other comprehensive loss		(8,826)		(8,478)
Treasury stock		(255,799)		(247,431)
Total equity		713,346		639,421
Total liabilities and stockholders’ equity	$	1,491,522	$	1,512,912

See Accompanying Notes to Condensed Consolidated Financial Statements.

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AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except per share data)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net revenues:
Product revenues, net	$	179,388	$	145,712	$	337,017	$	285,734
Other revenues		3,006		—		17,213		—
Total net revenues		182,394		145,712		354,230		285,734

Cost of revenues		87,228		72,974		168,964		139,156
Gross profit		95,166		72,738		185,266		146,578

Operating expenses:
Selling, distribution, and marketing		9,012		6,718		18,383		13,827
General and administrative		13,285		12,281		28,961		25,764
Research and development		17,652		16,843		34,695		36,658
Total operating expenses		39,949		35,842		82,039		76,249

Income from operations		55,217		36,896		103,227		70,329

Non-operating income (expenses):
Interest income		3,337		1,030		5,893		1,954
Interest expense		(8,609)		(3,602)		(17,220)		(4,000)
Other income (expenses), net		298		(1,516)		6,219		(1,906)
Total non-operating income (expenses), net		(4,974)		(4,088)		(5,108)		(3,952)

Income before income taxes		50,243		32,808		98,119		66,377
Income tax provision		12,294		6,383		16,420		13,135
Income before equity in losses of unconsolidated affiliate		37,949		26,425		81,699		53,242

Equity in losses of unconsolidated affiliate		—		(301)		(573)		(1,086)

Net income	$	37,949	$	26,124	$	81,126	$	52,156

Net income per share:
Basic	$	0.77	$	0.54	$	1.67	$	1.08

Diluted	$	0.73	$	0.49	$	1.54	$	0.99

Weighted-average shares used to compute net income per share:
Basic		48,907		48,404		48,560		48,202

Diluted		52,046		53,102		52,530		52,536

See Accompanying Notes to Condensed Consolidated Financial Statements.

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AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited; in thousands)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income	$	37,949	$	26,124	$	81,126	$	52,156

Other comprehensive income (loss), net of income taxes
Foreign currency translation adjustment		(57)		(56)		(348)		300
Total other comprehensive income (loss)		(57)		(56)		(348)		300

Total comprehensive income	$	37,892	$	26,068	$	80,778	$	52,456

See Accompanying Notes to Condensed Consolidated Financial Statements.

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AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited; in thousands, except share data)


	Common Stock							Accumulated		Treasury Stock
				Additional				Other
				Paid-in		Retained		Comprehensive
	Shares	Amount		Capital		Earnings		Income (loss)		Shares	Amount		Total
Balance as of December 31, 2023	59,390,194	$	6	$	486,056	$	409,268	$	(8,478)	(11,321,313)	$	(247,431)	$	639,421
Net income	—		—		—		43,177		—	—		—		43,177
Other comprehensive loss	—		—		—		—		(291)	—		—		(291)
Issuance of treasury stock in connection with the Company's equity plans	—		—		(33)		—		—	2,197		33		—
Issuance of common stock in connection with the Company's equity plans	770,265		—		(17,311)		—		—	—		—		(17,311)
Share-based compensation expense	—		—		7,360		—		—	—		—		7,360
Balance as of March 31, 2024	60,160,459	$	6	$	476,072	$	452,445	$	(8,769)	(11,319,116)	$	(247,398)	$	672,356
Net income	—		—		—		37,949		—	—		—		37,949
Other comprehensive loss	—		—		—		—		(57)	—		—		(57)
Purchase of treasury stock	—		—		—		—		—	(207,288)		(8,498)		(8,498)
Issuance of treasury stock in connection with the Company's equity plans	—		—		(97)		—		—	6,363		97		—
Issuance of common stock in connection with the Company's equity plans	321,996		—		5,816		—		—	—		—		5,816
Share-based compensation expense	—		—		5,780		—		—	—		—		5,780
Balance as of June 30, 2024	60,482,455	$	6	$	487,571	$	490,394	$	(8,826)	(11,520,041)	$	(255,799)	$	713,346


	Common Stock							Accumulated		Treasury Stock
				Additional				Other
				Paid-in		Retained		Comprehensive
	Shares	Amount		Capital		Earnings		Income (loss)		Shares	Amount		Total
Balance as of December 31, 2022	58,110,231	$	6	$	455,077	$	271,723	$	(8,624)	(9,998,162)	$	(189,524)	$	528,658
Net income	—		—		—		26,032		—	—		—		26,032
Other comprehensive income	—		—		—		—		356	—		—		356
Purchase of treasury stock	—		—		—		—		—	(263,131)		(8,015)		(8,015)
Issuance of common stock in connection with the Company's equity plans	330,300		—		(4,565)		—		—	—		—		(4,565)
Share-based compensation expense	—		—		6,111		—		—	—		—		6,111
Balance as of March 31, 2023	58,440,531	$	6	$	456,623	$	297,755	$	(8,268)	(10,261,293)	$	(197,539)	$	548,577
Net income	—		—		—		26,124		—	—		—		26,124
Other comprehensive loss	—		—		—		—		(56)	—		—		(56)
Purchase of treasury stock	—		—		—		—		—	(3,585)		(129)		(129)
Issuance of treasury stock in connection with the Company's equity plans	—		—		(231)		—		—	15,207		231		—
Issuance of common stock in connection with the Company's equity plans	627,946		—		9,853		—		—	—		—		9,853
Share-based compensation expense	—		—		4,865		—		—	—		—		4,865
Balance as of June 30, 2023	59,068,477	$	6	$	471,110	$	323,880	$	(8,324)	(10,249,671)	$	(197,437)	$	589,235

See Accompanying Notes to Condensed Consolidated Financial Statements.

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AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)


	Six Months Ended
	June 30,
	2024		2023
Cash Flows From Operating Activities:
Net income	$	81,126	$	52,156
Reconciliation to net cash provided by operating activities:
Loss on disposal of assets		108		7
Impairment of long-lived assets		—		2,700
Loss (gain) on interest rate swaps and foreign currency transactions, net		(4,589)		2,434
Depreciation of property, plant, and equipment		13,771		12,121
Amortization of product rights, trademarks, and patents		12,360		471
Operating lease right-of-use asset amortization		1,977		1,825
Amortization of discounts, premiums, and debt issuance costs		4,564		3,249
Equity in losses of unconsolidated affiliate		573		1,086
Share-based compensation expense		13,140		10,976
Changes in operating assets and liabilities:
Accounts receivable, net		(16,522)		(10,533)
Inventories		(17,020)		(767)
Prepaid expenses and other assets		241		740
Income tax refunds, deposits, and payable, net		(234)		11,967
Operating lease liabilities		(1,898)		(1,750)
Accounts payable and accrued liabilities		36,803		8,623
Net cash provided by operating activities		124,400		95,305

Cash Flows From Investing Activities:
BAQSIMI^® acquisition (See Note 3)		(129,000)		(500,829)
Purchases and construction of property, plant, and equipment		(14,837)		(18,531)
Purchase of investments		(22,507)		(19,774)
Maturity of investments		113,274		25,151
Deposits and other assets		(1,596)		(932)
Net cash used in investing activities		(54,666)		(514,915)

Cash Flows From Financing Activities:
Proceeds from equity plans, net of withholding tax payments		(11,496)		5,288
Purchase of treasury stock		(8,498)		(8,143)
Debt issuance costs		(251)		(14,150)
Proceeds from borrowing under lines of credit		4,057		—
Proceeds from issuance of long-term debt		—		500,000
Principal payments on long-term debt		(8,107)		(68,432)
Net cash provided by (used in) financing activities		(24,295)		414,563

Effect of exchange rate changes on cash		(116)		(6)

Net increase (decrease) in cash, cash equivalents, and restricted cash		45,323		(5,053)

Cash, cash equivalents, and restricted cash at beginning of period		144,531		156,333

Cash, cash equivalents, and restricted cash at end of period	$	189,854	$	151,280

Noncash Investing and Financing Activities:
Deferred payment for BAQSIMI^® acquisition	$	—	$	127,276
Capital expenditures included in accounts payable	$	6,730	$	3,681
Operating lease right-of-use assets in exchange for operating lease liabilities	$	1,748	$	2,598

Supplemental Disclosures of Cash Flow Information:
Interest paid, net of capitalized interest	$	13,860	$	2,772
Income taxes paid	$	16,932	$	1,322

See Accompanying Notes to Condensed Consolidated Financial Statements.

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AMPHASTAR PHARMACEUTICALS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. General

Amphastar Pharmaceuticals, Inc., a Delaware corporation (together with its subsidiaries, hereinafter referred to as the “Company”) is a bio-pharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically challenging generic and proprietary injectable, inhalation, and intranasal products, including products with high technical barriers to market entry. Additionally, the Company sells insulin active pharmaceutical ingredient, or API, products. Most of the Company’s products are used in hospital or urgent care clinical settings and are primarily contracted and distributed through group purchasing organizations and drug wholesalers. The Company’s insulin API products are sold to other pharmaceutical companies for use in their own products and are being used by the Company in the development of injectable finished pharmaceutical products. The Company’s inhalation product, Primatene MIST^®, is primarily distributed through drug retailers.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2023 and the notes thereto as filed with the Securities and Exchange Commission, or SEC, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted from the accompanying condensed consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from the audited financial statements. The accompanying interim financial statements are unaudited, but reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial position, results of operations, comprehensive income, stockholders’ equity, and cash flows for the periods presented. Unless otherwise noted, all such adjustments are of a normal, recurring nature. The Company’s results of operations, comprehensive income and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, and are prepared in accordance with GAAP. All intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the consolidated financial position, results of operations, and cash flows of the Company.

The Company’s subsidiaries include: (1) International Medication Systems, Limited, or IMS, (2) Armstrong Pharmaceuticals, Inc., or Armstrong, (3) Amphastar Nanjing Pharmaceuticals Inc., or ANP, (4) Amphastar France Pharmaceuticals, S.A.S., or AFP, (5) Amphastar UK Ltd., or AUK, (6) International Medication Systems (UK) Limited, or IMS UK, and (7) Amphastar Medication Co., LLC, or Amphastar Medication.

Investment in Unconsolidated Affiliate

The Company applies the equity method of accounting for investments when it has significant influence, but not controlling interest in the investee. The Company’s proportionate share of the earnings or losses resulting from these investments is reported as “Equity in losses of unconsolidated affiliate” in the accompanying condensed consolidated statements of operations. Investments accounted for using the equity method may be reported on a lag of up to three months if financial statements of the investee are not available in sufficient time for the investor to apply the equity method as of the current reporting date.

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AMPHASTAR PHARMACEUTICALS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The carrying value of equity method investments is reported as “Investment in unconsolidated affiliate” in the accompanying condensed consolidated balance sheets. The Company’s equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s earnings or losses and dividends paid, if any.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The principal accounting estimates include: fair value of acquired assets, determination of allowances for credit losses, fair value of financial instruments, allowance for discounts, provision for chargebacks and rebates, provision for product returns, adjustment of inventory to its net realizable value, impairment of investments, long-lived and intangible assets and goodwill, accrual for workers’ compensation liabilities, litigation reserves, stock price volatility for share-based compensation expense, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions.

Foreign Currency

The functional currency of the Company, its domestic subsidiaries, its Chinese subsidiary ANP, and its U.K. subsidiary, AUK, is the U.S. Dollar, or USD. ANP maintains its books of record in Chinese yuan. These books are remeasured into the functional currency of USD using the current or historical exchange rates. The resulting currency remeasurement adjustments and other transactional foreign currency exchange gains and losses are reflected in the Company’s condensed consolidated statements of operations.

The Company’s French subsidiary, AFP, maintains its book of record in euros. AUK’s subsidiary, IMS UK, maintains its book of record in British pounds. These local currencies have been determined to be the subsidiaries’ respective functional currencies. Activities in the statements of operations are translated to USD using average exchange rates during the period. Assets and liabilities are translated at the rate of exchange prevailing on the balance sheet date. Equity is translated at the prevailing rate of exchange at the date of the equity transactions. Translation adjustments are reflected in stockholders’ equity and are included as a component of other comprehensive income (loss). The unrealized gains or losses of intercompany foreign currency transactions that are of a long-term investment nature are reported in other accumulated comprehensive income (loss).

Amphastar Pharmaceuticals, Inc. [AMPH] Filings
10-Q	[2024-08-09]
10-Q	[2024-05-10]
10-K	[2024-02-29]
10-Q	[2023-11-08]
10-Q	[2023-08-09]
10-Q	[2023-05-09]
10-K	[2023-03-01]
10-Q	[2022-11-08]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-11]
10-Q	[2021-11-09]
10-Q	[2021-08-09]
10-Q	[2021-05-07]
10-K	[2021-03-15]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-11]
10-K	[2020-03-16]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-10]
10-K	[2019-03-15]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-14]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-03-15]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-13]
10-Q	[2015-08-13]
10-Q	[2015-05-14]
10-K	[2015-03-26]
10-Q	[2014-11-13]
10-Q	[2014-08-13]
S-1	[2014-05-20]