Company: SUPN
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001356576-25-000017
Chunk: 543

Company: SUPERNUS PHARMACEUTICALS, INC.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1A
Chunk 543
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counted basis. The key assumptions considered in estimating the fair value of the Adamas sales-based milestones include the estimated revenue projections, volatility, estimated discount rates and risk-free interest rate.

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Table of ContentsSupernus Pharmaceuticals, Inc.Notes to Consolidated Financial Statements (Continued)6. Contingent Consideration (Continued)

Change in the Fair Value of Contingent ConsiderationThe following table provides a reconciliation of the beginning and ending balances related to the contingent consideration liabilities for the USWM Acquisition and Adamas Acquisition (dollars in thousands):USWM AcquisitionAdamas AcquisitionTotalBalance, December 31, 2021$70,170 $10,307 $80,477 Milestone payments(25,000)— (25,000)Change in fair value recognized in earnings1,100 (1,610)(510)Balance, December 31, 202246,270 8,697 54,967 Change in fair value recognized in earnings130 (1,647)(1,517)Balance, December 31, 202346,400 7,050 53,450 Change in fair value recognized in earnings940 (7,050)(6,110)Balance, December 31, 2024$47,340 $— $47,340 The Company recorded the following changes in fair value of the contingent consideration liability for the USWM milestones:•For the year ended December 31, 2024, the Company recorded a $0.9 million expense which was primarily driven by passage of time, as well as the change in timing of milestone achievement and estimated discount rate.•For the year ended December 31, 2023, the Company recorded a $0.1 million expense which was primarily driven by the passage of time and, as well as the change in timing of milestone achievement and estimated discount rate. •For the year ended December 31, 2022, the Company recorded a $1.1 million expense which was primarily driven by the passage of time and the accretion to the payout amount related to the milestone achieved in the first quarter of 2022.The Company paid $25 million of the USWM contingent consideration in the first quarter of 2022 of which $22.9 million represents the acquisition date fair value of the contingent consideration liability and was reported under cash flows from financing activities. The remaining $2.1 million represents the excess of the acquisition date fair value