Wanted to post this several weeks ago before the First Quarter results, but waited to see if there were any changes. This from the Fourth Quarter and Full Year Financial results back in March:
Contingent Value Rights
Our contingent value rights (“CVRs”), which were granted coincident with our merger with BioSante Pharmaceuticals, Inc. and expire in June 2023, are considered to be contingent consideration and are classified as liabilities. As such, the CVRs were recorded as purchase consideration at their estimated fair value, using Level 3 inputs, and are marked to market each reporting period until settlement. The fair value of CVRs is estimated using the present value of management’s projection of the expected payments pursuant to the terms of the CVR agreement, which is the primary unobservable input. If our projection or expected payments were to increase substantially, the value of the CVRs could increase as a result. The present value of the liability was calculated using a discount rate of 15%. We determined that the fair value of the CVRs was immaterial as of December 31, 2022 and 2021. We also determined that the changes in such fair value were immaterial for the years ended December 31, 2022, 2021, and 2020.
It could also be for filing the 505(b)(2) NDA's and getting ready for commercialization. Filings show that they expect to start paying earnout payment next year. I would agree thar CVR's are dead . It benefits Sammy and MVP greatly to have them expire.
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