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Eton Pharmaceuticals, Inc. ETON Hemangeol — Inventory Stepup

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TLRYBeverage Alcohol Inventory — Purchase Price Accounting Step Up For Inventory Sold
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Other financials

Income statement

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Revenue$24.3M+40.4%
Gross profit$14.7M+49.4%
Operating income$2.4M+614%
Net income$1.6M+199%
EPS (diluted)$0.05+183%

Balance sheet

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Cash & equivalents$19.7M+12.9%
Total debt$31.3M+3.7%
Total equity$30.6M+25.2%
Total assets$97.7M+16.3%

Cash flow

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Operating cash flow$7.4M+254%
CapEx$75.0K
Free cash flow$7.3M+251%

Valuation

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Market cap$1.22B+162%
Enterprise value$1.23B+161%
P/S14.1×+6.0×

Profitability

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Gross margin54.8%-3.7pp
Operating margin-15.1%
Net margin-9.5%-2.7pp
FCF margin17.1%

Returns & leverage

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Return on equity-34.2%+0.9pp
Debt / equity-0.2×
Current ratio1.2×-0.8×

Where this comes from

Reported directly by Eton Pharmaceuticals, Inc. in its filing.

Tagged under the XBRL concept eton:InventoryStepup.

The source filing: Eton Pharmaceuticals, Inc.’s 10-Q, filed May 14, 2026.

Filed
May 14, 2026, 4:17 PM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0001437749-26-017064

The Company has historically capitalized payments it makes for licensed products when the payment is based on Food and Drug Administration (“FDA”) approval or near-term approval for the product and the cost is recoverable based on expected future cash flows from the product. In January 2026, the Company purchased the licensing rights to a product that has not received FDA approval and accordingly, is classified as In-Process Research and Development (“IPR&D”) within Intangible assets, net on the Company's Condensed Balance Sheets as of March 31, 2026. In February 2026, the Company entered into a licensing agreement to acquire the U.S. rights to HEMANGEOL® (propranolol) oral solution from Pierre Fabre Medicament Sas (“Pierre Fabre”), in which the Company paid Pierre Fabre $14,000 upfront. The Company accounted for this transaction as an asset acquisition, and after purchase accounting adjustments for inventory step-up costs of $1,131, and including acquisition related expenses of $100, the Company recorded $12,969 for the HEMANGEOL® intangible asset which is being amortized over its useful life of ten years.

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FAQ

What is Eton Pharmaceuticals, Inc.'s hemangeol — inventory stepup?
Eton Pharmaceuticals, Inc. (ETON) reported hemangeol — inventory stepup of $1.13M in Q1 2026.
What does hemangeol — inventory stepup mean?
This represents the accounting adjustment to increase the carrying value of acquired inventory to its fair market value at the time of a business combination or asset acquisition. It reflects the difference between the historical cost of the inventory and the price paid during the acquisition process. This non-cash charge impacts the cost of goods sold as the acquired inventory is subsequently sold.

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