0000882104-21-000035 | 10-K | XBRL Viewer

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

$ (77,955)

$ (70,691)

$ (68,859)

Other comprehensive income (loss), net of tax

Change in unrealized gains on investments in available-for-sale securities

(578)

Adjustment for net (gains) losses realized and included in net income, net of tax

(603)

Total change in unrealized gains on investments in available-for-sale securities, net of tax

^[1]

(1,181)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

(77,955)

(70,691)

(70,040)

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest

(659)

(280)

Comprehensive income

$ (77,296)

$ (70,411)

$ (70,040)

[1]	Net of tax of ($314) for the year ended December 31, 2018.

Noncontrolling Interest in Variable Interest Entity

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale securities, tax	$ 0	$ (314)

Consolidated Statements of Stockholders' Equity (Deficit) Statement - USD ($)
$ in Thousands

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings (Accumulated Deficit) [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

Noncontrolling Interest [Member]

$ 0

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 845,890

Beginning Balance (in shares) at Dec. 31, 2017

153,774,756

Beginning Balance at Dec. 31, 2017

$ 1,538

$ (102,443)

$ 945,614

$ 1,181

Issuance of common stock under employee benefit plans (in Shares)

(601,668)

Issuance of common stock under employee benefit plans

$ (58)

Stock-based compensation expense

$ 4,407

Stock Repurchased During Period, Shares

(16,660,566)

Treasury Stock, Retired, Par Value Method, Amount

$ (167)

Treasury Stock, Value, Acquired, Cost Method

(2,103)

Treasury Stock, Retired, Cost Method, Amount

(48,266)

Stock Repurchased and Retired During Period, Value

(50,536)

Dividends, Common Stock, Paid-in-kind

Exchange of debt

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

(70,040)

Net Income (Loss) Attributable to Parent

(68,859)

Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest

(68,859)

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

$ (1,181)

^[1]

(1,181)

Ending Balance (in shares) at Dec. 31, 2018

136,512,522

Ending Balance at Dec. 31, 2018

1,365

(98,030)

828,547

Purchased call options cost

$ 0

Treasury Stock, Value

(2,103)

Noncontrolling Interest in Variable Interest Entity

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 729,779

Issuance of common stock under employee benefit plans (in Shares)

729,191

Issuance of common stock under employee benefit plans

$ (8)

(7)

Adjustments to Additional Paid in Capital, Other

$ 426

Stock-based compensation expense

$ 6,907

Stock Repurchased During Period, Shares

(26,321,293)

Treasury Stock, Retired, Par Value Method, Amount

$ (263)

Reduction in Treasury stock held

(2,103)

Treasury Stock, Retired, Cost Method, Amount

(87,312)

Stock Repurchased and Retired During Period, Value

(85,472)

Dividends, Common Stock, Paid-in-kind

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

784

Exchange of debt

86,053

(36,963)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

(70,691)

Net Income (Loss) Attributable to Parent

(70,411)

Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest

(280)

Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest

(70,691)

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

^[1]

$ 0

Ending Balance (in shares) at Dec. 31, 2019

124,302,616

Ending Balance at Dec. 31, 2019

$ 593,200

1,243

(78,875)

670,832

Noncontrolling Interest, Period Increase (Decrease)

$ 358

Stock Issued During Period, Shares, New Issues

13,382,196

Stock Issued

$ 45,901

134

Stock Issued During Period, Value, New Issues

45,767

Purchased call options cost

3,025

Treasury Stock, Value

Noncontrolling Interest in Variable Interest Entity

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 593,278

Issuance of common stock under employee benefit plans (in Shares)

2,131,730

Issuance of common stock under employee benefit plans

$ (460)

(22)

438

Adjustments to Additional Paid in Capital, Other

$ 683

Stock-based compensation expense

$ 15,527

Stock Repurchased During Period, Shares

(12,322,988)

Treasury Stock, Retired, Par Value Method, Amount

$ (124)

Treasury Stock, Retired, Cost Method, Amount

(39,245)

Stock Repurchased and Retired During Period, Value

(39,369)

Dividends, Common Stock, Paid-in-kind

(64,400)

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

783

Exchange of debt

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

(77,955)

Net Income (Loss) Attributable to Parent

(77,296)

Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest

(659)

Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest

(77,955)

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

^[1]

$ 0

Ending Balance (in shares) at Aug. 31, 2020

114,111,358

Ending Balance at Aug. 31, 2020

$ 1,141

(65,337)

$ 489,891

$ 0

Noncontrolling Interest, Period Increase (Decrease)

$ 100

Write off of Deferred Debt Issuance Cost

$ (3,911)

Purchased call options cost

801

Treasury Stock, Value

Noncontrolling Interest in Variable Interest Entity

(481)

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 425,214

[1]	Net of tax of ($314) for the year ended December 31, 2018.

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	8 Months Ended	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	Aug. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations	$ 146,796	$ 193,451	$ 394,590
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(77,955)	(70,691)	(68,859)
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(34,915)	(13,597)	(36,094)
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(43,040)	(57,094)	(32,765)
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of convertible notes and term loan offering costs	622	7,237	7,609
Accreted interest	44	79	0
Amortization of Intangible Assets	841	1,290	1,294
Amortization Of Right of Use Assets	497	729	0
Asset Impairment Charges	0	10,768	8,200
Change in fair value of acquired royalty rights	0	0	31
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount	(5,576)	0	764
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss)	110	46	(33)
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	0	0	369
Other amortization, depreciation and accretion of embedded derivative	1,017	2,691	3,149
Gains (Losses) on Extinguishment of Debt	606	8,430	0
Gain (Loss) on Disposition of Intangible Assets	0	3,476	0
Gain (Loss) on Disposition of Property Plant Equipment	331	0	66
Stock-based compensation expense	18,802	6,834	4,337
Deferred taxes	(18,723)	(11,303)	11,597
Changes in assets and liabilities:
Receivables from licensees	3,344	(1,686)	234
Prepaid and other current assets	(29,875)	2,764	(1,629)
Increase (Decrease) in Inventories	(8,062)	(4,744)	(889)
Other assets	306	(165)	(2,142)
Accounts payable	371	109	796
Accrued liabilities	5,762	4,845	(5,380)
Increase (Decrease) in Income Taxes Payable	0	0	(28)
Other long-term liabilities	1,030	4,967	(462)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	(60,441)	(27,679)	(6,410)
Cash Provided by (Used in) Operating Activities, Discontinued Operations	28,318	(4,765)	(7,015)
Cash flows from investing activities
Proceeds from Sale and Maturity of Other Investments	7,500	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	0	0	(858)
Maturities of investments	0	0	4,116
Payments for (Proceeds from) Productive Assets	0	0	366
Payments to Acquire Intangible Assets	0	1,700	0
Proceeds from Sale of Intangible Assets	0	5,000	0
Acquisition of property and equipment	(221)	(763)	(1,117)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	7,279	2,537	2,507
Cash Provided by (Used in) Investing Activities, Discontinued Operations	38,966	19,273	54,197
Cash flows from financing activities
Cash payment for repurchase of convertible notes	18,845	97,889	0
Repayments of Notes Payable	0	0	(126,447)
Payment of debt issuance costs	0	(7,451)	0
Purchased call options cost	801	3,025	0
Payment for Contingent Consideration Liability, Financing Activities	0	(1,071)	0
Payments for Repurchase of Common Stock	(39,373)	(86,898)	(49,109)
Cash dividends paid	0	(9)	(48)
Proceeds from Stock Options Exercised	461	0	0
Excess Tax Benefit from Share-based Compensation, Financing Activities	(3,462)	(143)	(232)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations	(60,418)	(190,436)	(175,836)
Cash Provided by (Used in) Financing Activities, Discontinued Operations	(359)	(69)	(119)
Net increase/(decrease) in cash and cash equivalents	(46,655)	(201,139)	(132,676)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations	25,060	24,469	28,910
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	121,736	168,982	365,680
Supplemental cash flow information
Cash paid for income taxes	(4)	(2,689)	3,805
Interest Paid, Excluding Capitalized Interest, Operating Activities	298	4,265	6,654
Supplemental disclosures of non-cash financing activities
Exchange of debt	0	86,053	0
Stock Issued	0	45,901	0
Assets held for sale reclassified from other assets to intangibles	0	0	1,811
Dividends, Common Stock, Paid-in-kind	$ 64,400	$ 0	$ 0

Organization and Business	12 Months Ended
Organization and Business	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Organization and Business Throughout our history, the Company’s mission has been to improve the lives of patients by aiding in the successful development of innovative therapeutics and healthcare technologies. PDL BioPharma was founded in 1986 as Protein Design Labs, Inc. when it pioneered the humanization of monoclonal antibodies, enabling the discovery of a new generation of targeted treatments that have had a profound impact on patients living with different cancers as well as a variety of other debilitating diseases. In 2006, the Company changed its name to PDL BioPharma, Inc. Historically, the Company generated a substantial portion of its revenues through the license agreements related to patents covering the humanization of antibodies, which it refers to as the Queen et al. patents. In 2012, the Company began providing alternative sources of capital through royalty monetization and debt facilities, and, in 2016, the Company began acquiring commercial-stage products and launching specialized companies dedicated to the commercialization of these products. In 2019, and as a further evolution of the Company’s strategy, it began to enter into strategic transactions involving innovative late clinical-stage or early commercial-stage therapeutics. Consistent with this strategy, on April 10, 2019, the Company entered into a securities purchase agreement with Evofem Biosciences, Inc. (“Evofem”), pursuant to which it invested $60.0 million in a private placement of securities structured in two tranches. In September 2019, the Company engaged financial and legal advisors and initiated a review of its strategy. This review was completed in December 2019 at which time the Company announced that it decided to halt the execution of its growth strategy, cease additional strategic transactions and investments and instead pursue a formal process to unlock value by monetizing its assets and returning net proceeds to stockholders (the “monetization strategy”). Pursuant to the Company’s monetization strategy, the Company does not expect to enter into any additional strategic investments. The Company further announced in December 2019 that it would explore a variety of potential transactions in connection with the monetization strategy, including a whole Company sale, divestiture of assets, spin-offs of operating entities, merger opportunities or a combination thereof. Over the subsequent months, the Company’s Board of Directors (the “Board”) and management analyzed, together with outside financial and legal advisors, how to best capture value pursuant to the monetization strategy and best return the value of the assets in its portfolio to its stockholders. During the first quarter of 2020, the Board approved a plan of complete liquidation (the “Plan of Liquidation”) and passed a resolution to seek stockholder approval to dissolve the Company as permitted by the General Corporation Law of the State of Delaware (the “DGCL”). The proposal was approved by stockholders on August 19, 2020 at the Company’s 2020 Annual Meeting of Stockholders. On November 5, 2020, our Board approved filing a Certificate of Dissolution with the Secretary of State of Delaware on January 4, 2021 (the “Final Record Date”) and proceeding to complete the dissolution process for the Company in accordance with the DGCL. The liquidation and dissolution process will take a minimum of three years. However, the timing may be extended due to circumstances such as pending litigation or other factors that may affect the ability of the Company to wind down its business. Upon filing the Certificate of Dissolution on the Final Record Date, the Company closed its stock transfer books, meaning it will not record any further transfers of its common stock after the Final Record Date, except pursuant to the provisions of a deceased stockholder’s will, intestate succession, or by operation of law and the Company will not issue any new stock certificates, other than replacement certificates. In addition, after the Final Record Date, the Company will not issue any shares of its common stock for outstanding stock options. As a result of the closing of our transfer books, it is anticipated that distributions, if any, made in connection with the dissolution will be made pro rata to the stockholders of record as of the Final Record Date. On January 7, 2021 the Company was formally delisted from the Nasdaq Stock Market exchange, and it does not anticipate participating in Over-The-Counter (“OTC”) trading. On January 8, 2021, the Company filed a Form 15 notifying the SEC of deregistration of its common stock under Section 12(g) of the Exchange Act and suspension of its duty to file reports under Sections 13 and 15(d) of the Exchange Act. Pursuant to the Company’s monetization strategy, the Company explored a variety of potential transactions, including a whole Company sale, divestiture of assets, spin-offs of operating entities, merger opportunities or a combination. During the year ended December 31, 2020, the Company’s Pharmaceutical and Strategic Positions segments and the royalty right assets within the Income Generating Assets segment met the criteria to be classified as held for sale. Those investments are reported as discontinued operations on the Consolidated Statements of Operations for the eight months ended August 31, 2020 and for the years ended December 31, 2019, and 2018 and as Assets and Liabilities held for sale on the Consolidated Balance Sheet as of December 31, 2019. Based on the composition of its investment portfolio, under the Going Concern Basis, the Company historically operated in four segments designated as Medical Devices, Strategic Positions, Pharmaceutical and Income Generating Assets. Those investments are reported as discontinued operations on the Consolidated Statements of Operations for the eight months ended August 31, 2020 and for the years ended December 31, 2019, and 2018. Following is a summary of the Company’s segments including those that have been classified as discontinued operations. The Medical Devices segment consisted of revenue derived from the sale and lease of the LENSAR® Laser System made by the Company’s majority-owned subsidiary, LENSAR, Inc. (“LENSAR”), which may include equipment, Patient Interface Devices (“PIDs”), procedure licenses, training, installation, warranty and maintenance agreements. On October 1, 2020, the Company completed the previously announced spin-off of LENSAR into a new, independent publicly traded company, through a distribution in the form of a liquidation distribution of all outstanding shares of LENSAR common stock owned by the Company to holders of the Company’s common stock on a pro rata basis (the “Distribution”). The Distribution was made to the Company’s stockholders of record as of the close of business on September 22, 2020 (the “LENSAR Record Date”) and such stockholders received 0.075879 shares of LENSAR common stock for every one share of the Company’s common stock held as of close of business on the LENSAR Record Date. Prior to the Distribution, the Company owned approximately 81.5% of LENSAR common stock. Following the completion of the distribution, PDL does not own any equity interest in LENSAR. LENSAR became an independent public company whose stock is listed and trading under the symbol “LNSR” on the Nasdaq Stock Market. The Strategic Positions segment consisted of an investment in Evofem. Evofem is a publicly-traded (NASDAQ: EVFM) clinical-stage biopharmaceutical company committed to developing and commercializing innovative products to address unmet needs in women's sexual and reproductive health. Evofem is leveraging its proprietary Multipurpose Vaginal pH Regulator (MVP-R™) platform to develop Phexxi® (L-lactic acid, citric acid and potassium bitartrate) for hormone-free birth control. On May 21, 2020 the Evofem common stock held within the Strategic Positions segment was distributed in the form of a liquidation distribution to the Company’s stockholders on a pro rata basis. As of December 31, 2020, the Company held warrants to purchase up to 3,333,334 shares of Evofem common stock at an exercise price of $6.38 per share. Our Pharmaceutical segment consisted of revenue derived from branded prescription medicine products sold under the name Tekturna® and Tekturna HCT® in the United States and Rasilez® and Rasilez HCT® in the rest of the world and revenue generated from the sale of an authorized generic form of Tekturna in the United States (collectively, the “Noden Products”). The branded prescription Noden Products were acquired from Novartis AG, Novartis Pharma AG and Speedel Holding AG (collectively, “Novartis”) in July 2016 (the “Noden Transaction”) by the Company’s wholly-owned subsidiary, Noden Pharma DAC (“Noden DAC”). The Company, through its wholly-owned subsidiary, Noden Pharma USA Inc. (“Noden USA”) launched its authorized generic form of Tekturna in the United States in March 2019. In September 2020, the Company sold the Noden business, including its Noden Pharma USA, Inc. subsidiary (“Noden USA” and, together with Noden DAC, “Noden”) to a third-party. Our Income Generating Assets segment consisted of revenue derived from (i) notes and other long-term receivables, (ii) royalty rights and hybrid notes/royalty receivables, (iii) equity investments and (iv) royalties from issued patents in the United States and elsewhere covering the humanization of antibodies, which we refer to as the Queen et al. patents.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Consolidated Financial Statements of PDL Biopharma, Inc. and its subsidiaries (collectively, the “Company” or “PDL”) have been prepared in accordance with Generally Accepted Accounting Principles (United States) (“GAAP”).

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

Liquidation Basis of Accounting

As a result of the August 19, 2020 approval by the Company’s stockholders to file for dissolution pursuant to a plan of dissolution, it was determined that liquidation was imminent and the Company’s basis of accounting transitioned, effective September 1, 2020, the beginning of the fiscal month following the approval (“Convenience Date”), from the going concern basis of accounting (“Going Concern Basis”) to the liquidation basis of accounting (“Liquidation Basis”) in accordance with GAAP. Under the Liquidation Basis, the remeasurement of the Company's assets and liabilities includes management's estimates and assumptions of: (i) income to be generated from the remaining assets until the anticipated date of sale; (ii) sales proceeds to be received for these assets at the time of sale; (iii) operating expenses to be incurred; and (iv) amounts required to settle liabilities.

The estimated liquidation values for assets derived from future revenue streams and asset sales and the settlement of liabilities are reflected on the Consolidated Statement of Net Assets in Liquidation. The actual amounts realized could differ materially from the estimated amounts.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries up to their date of sale or distribution. All significant intercompany balances and transactions have been eliminated upon consolidation.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors; to cast a majority of votes at the meeting of the board of directors; or to govern the financial and operating policies of the investee under a statute or agreement among the stockholders or equity holders.

The Company applies the guidance codified in ASC 810, Consolidations, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. The Company identifies an entity as a variable interest entity if either: (1) the entity does not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support, or (2) the entity’s equity investors lack the essential characteristics of a controlling financial interest. The Company performs ongoing qualitative assessments of its variable interest entities to determine whether the Company has a controlling financial interest in any variable interest entity and therefore is the primary beneficiary, and if it has the power to direct activities that impact the activities of the entity.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. While such estimates and assumptions are not always unique to the basis of accounting being followed under GAAP, some are more applicable to the accounting basis being followed.

Under the Liquidation Basis, the accounting estimates that require management’s most significant, difficult and subjective judgments include: the determination that the liquidation was imminent; the estimated sales proceeds of our assets; estimated settlement amounts of our liabilities, the estimated revenue and operating expenses that are projected during dissolution and discount rates.

Significant estimates under the Going Concern Basis include: the valuation of royalty rights; product revenue recognition and allowances for customer rebates; the valuation of notes receivable and inventory; the assessment of recoverability of intangible assets and their estimated useful lives; the valuation and recognition of stock-based compensation; the valuation of warrants to acquire shares of common stock and the discount rates used in fair value measurements.

Additional significant estimates under both the Liquidation Basis and Going Concern Basis include the recognition and measurement of current and deferred income tax assets and liabilities, including amounts recoverable under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and the amount of uncertain tax positions.

Furthermore, the impact on accounting estimates and judgments on the Company’s financial condition and results of operations due to the 2019 coronavirus (“COVID-19”) has introduced additional uncertainties. Actual results could differ materially from those estimates.

Segment Reporting

Under ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the entity’s chief operating decision maker, in deciding how to allocate resources and in assessing performance. Under the Going Concern Basis, the Company evaluated its operating segments in accordance with ASC 280, and had identified four reportable segments: Medical Devices, Strategic Positions, Pharmaceutical and Income Generating Assets.

Severance and retention

After the Company announced its monetization strategy, it recognized that its ability to execute on its plan and optimize returns to its stockholders depended to a large extent on its ability to retain the necessary expertise to effectively transact with respect to its assets. On December 21, 2019, the Compensation Committee of the Board adopted a Wind Down Retention Plan in which the Company’s executive officers and other employees who were participants in the Company’s Severance Plan were eligible to participate. Under the Wind Down Retention Plan, participants have been eligible to earn a retention benefit in consideration for their continued employment with the Company. The Wind Down Retention benefits are equivalent to previously disclosed compensation payments contemplated in connection with a change in control under the Company’s existing Severance Plan. Under the Wind Down Retention Plan, the Company has been obligated to pay a retention benefit to each participant upon termination of the participant’s employment with the Company either by the Company without cause or by the participant for good reason. The retention benefits are in lieu of (and not in addition to) any other severance compensation that were payable to the participant under the Company’s Severance Plan. In connection with the adoption of the Wind Down Retention Plan, a severance liability was being recorded over the remaining service period for the participating employees under the Going Concern Basis. Upon the adoption of the Liquidation Basis on September 1, 2020, all remaining estimated severance and retention costs were accrued. As of December 31, 2020, the Company has a remaining severance liability of $0.3 million, which is included in Compensation and benefit costs on the Company’s Consolidated Statement of Net Assets. Expenses associated with severance payments and accruals under the Going Concern Basis are reflected in Severance and retention on the Company’s Consolidated Statements of Operations for the eight months ended August 31, 2020.

The Wind Down Retention Plan also provides that, consistent with the existing terms of the Company’s Amended and Restated 2005 Equity Incentive Plan (the “Equity Plan”), the vesting of all outstanding equity awards held by participants as of the date the Wind Down Retention Plan was adopted are accelerated upon the earlier of: (i) a termination of the participant’s employment with the Company either by the Company without cause or by the participant for good reason or (ii) the consummation of a change in control (as defined in the Equity Plan) of the Company. In addition, the post-termination exercise period for all outstanding stock options are extended until their expiration date. In connection with the Board adopting the Plan of Liquidation in the first quarter of 2020, all of the outstanding and unvested stock options and restricted stock granted to the Company’s employees and executive officers, with the exception of certain outstanding awards under the 2016/20 Long-Term Incentive Plan, accelerated and vested under the change in control definition in the Equity Plan. The expense associated with the accelerated vesting, totaling $15.7 million, is reported as Severance and retention on the Company’s Consolidated Statements of Operations for the eight months ended August 31, 2020 under the Going Concern Basis.

Assets Held for Sale

Under the Going Concern Basis, assets and liabilities are classified as held for sale when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. When all of these criteria have been met, the assets and liabilities are classified as held for sale in the balance sheet. Assets classified as held for sale are reported at the lower of their carrying value or fair value less costs to sell. Depreciation and amortization of assets ceases upon designation as held for sale. The assets and liabilities held for sale are recorded on the Company’s Consolidated Balance Sheet as of December 31, 2019 as Assets held for sale and Liabilities held for sale, respectively.

Discontinued Operations

Under the Going Concern Basis, discontinued operations comprise those activities that were disposed of during the period or which were classified as held for sale at the end of the period, represent a separate major line of business or geographical area that can be clearly distinguished for operational and financial reporting purposes and represent a strategic shift that has or will have a major effect on the Company’s operations and financial results. The profits and losses are presented on the Consolidated Statements of Operations as discontinued operations. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Cash Equivalents

The Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions and, by policy, limits the amount of credit exposure in any one financial instrument.

Accounts Receivable

Under the Going Concern Basis the Company concluded that an allowance for doubtful accounts was not required as of December 31, 2019. On January 1, 2020 the Company adopted ASU No. 2016-13 on. See “Adopted Accounting Pronouncements” below for additional information.

Investments

As of December 31, 2020, the Company had an investment in a privately held company AEON BioPharma, Inc., including its ownership of Alphaeon 1, LLC, (formerly collectively referred to as “Alphaeon” and currently and collectively referred to as “AEON”). As of December 31, 2019, the Company’s investments were comprised of an investment in a privately held company and a publicly traded company, Evofem.

Under the Going Concern Basis, the Company’s investment in Evofem qualified for equity method accounting given its prior percentage ownership in Evofem and the ability to exercise significant influence. The Company elected the fair value method to account for its investment in Evofem as it believed it better reflected economic reality, the financial reporting of the investment and the current value of the asset. Changes in fair value of the Evofem equity investment are presented in the Consolidated Statements of Operations as discontinued operations. All shares of common stock of Evofem owned by PDL were distributed to the Company’s stockholders in May 2020. As of December 31, 2020, the Company held 3.3 million warrants convertible into Evofem common stock at an exercise price of $6.38 per share. Under the Going Concern Basis, the fair value of the warrants was estimated using recently quoted market prices of the underlying equity security and the Black-Scholes option pricing model. In addition to these inputs, under the Liquidation Basis, a discount is applied to the resulting value to reflect limited liquidity.

The Company’s equity security investment in AEON qualified to be measured at fair value under the Going Concern Basis, although the fair value of the investment was not readily determinable as AEON’s shares are not publicly traded. The Company evaluated the fair value of this investment by performing a qualitative assessment each reporting period. If the results of this qualitative assessment indicated that the fair value was less than the carrying value, the investment was written down to its fair value. This investment is included in Other assets on the Consolidated Statement of Net Assets as of December 31, 2020 and on the Company’s Consolidated Balance Sheet as Other long-term assets as of December 31, 2019.

Fair Value Measurements

The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company were to sell an asset or the Company paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. Under the Going Concern Basis, the assets and liabilities are categorized and disclosed in one of the following three categories:

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 2 – based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and

Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable.

Notes Receivable and Other Long-Term Receivables

Under the Going Concern Basis, the Company accounted for its notes receivable at amortized cost, net of unamortized origination fees, if any, and adjusted for any impairment losses. Interest was accreted or accrued to “Interest revenue” using the effective interest method. When and if supplemental payments were received from certain of these notes and other long-term receivables, an adjustment to the estimated effective interest rate was affected prospectively.

The Company evaluated the collectability of both interest and principal for each note receivable and loan to determine whether it is impaired. A note receivable or loan was considered to be impaired when, based on current information and events, the Company determines it is probable that it will be unable to collect amounts due according to the existing contractual terms. When a note receivable or loan was considered to be impaired, the amount of loss was calculated by comparing the carrying value of the financial asset to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the estimated fair value of the underlying collateral, less costs to sell, if the loan was collateralized and the Company expected repayment to be provided solely by the collateral. Impairment assessments required significant judgments and were based on significant assumptions related to the borrower’s credit risk, financial performance, expected sales, and estimated fair value of the collateral.

The Company recorded interest on an accrual basis and recognized it was earned in accordance with the contractual terms of the credit agreement, to the extent that such amounts were expected to be collected. When a note receivable or loan became past due, or if management otherwise did not expect that principal, interest, and other obligations due would be collected in full, the Company generally placed the note receivable or loan on an impaired status and ceased recognizing interest income on that note receivable or loan. Any interest payments received for notes receivable or loans on an impaired status were recognized as interest income on a cash basis.

The Company did not recognized any interest revenue for the CareView Communications, Inc. (“CareView”) note receivable while on impaired status. The last interest payments were received during the year ended December 31, 2018, when the Company recognized $2.3 million of interest revenue for the CareView note receivable as a result of cash interest payments made during the year.

As of December 31, 2020, the Company had one note receivable investment with a Liquidation Basis value of approximately $0.7 million. At December 31, 2019, under the Going Concern Basis, the Company had two note receivable investments, which were determined to be impaired, with a cumulative investment cost and fair value of approximately $52.1 million and $57.3 million, respectively, as of this date. During the eight months ended August 31, 2020 and the years ended December 31, 2019, and 2018, the Company did not recognize any losses on extinguishment of notes receivable.

There were no impairment losses on notes receivable for the eight months ended August 31, 2020. During the years ended December 31, 2019 and 2018, the Company recorded an impairment loss of $10.8 million and $8.2 million, respectively, related to the CareView note receivable. For additional information about the impairment loss recorded on the CareView note receivable, see Note 9, Notes and Other Long-Term Receivables.

Inventory

Under the Going Concern Basis, Inventory, which consisted of raw materials, work-in-process and finished goods, was stated at the lower of cost or net realizable value. The Company determined cost using the first-in, first-out method. Inventory levels were analyzed periodically and written down to their net realizable value if they had become obsolete, had a cost basis in excess of its expected net realizable value or were in excess of expected requirements. The Company analyzed current and future product demand relative to the remaining product shelf life to identify potential excess inventory. The Company built demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company classified inventory as current on the Consolidated Balance Sheet when the Company expected inventory to be consumed for commercial use within the next twelve months.

Intangible Assets

Under the Going Concern Basis, intangible assets with finite useful lives consisted primarily of customer relationships, acquired technology and trademarks. They were amortized on a straight-line basis over their estimated useful lives, ranging from five years to 20 years, which was consistent with the estimated lives of the associated products. Such assets were reviewed for impairment when events or circumstances indicated that the carrying value of an asset was not recoverable. An impairment loss was recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition were less than its carrying amount. The amount of any impairment was measured as the difference between the carrying amount and the fair value of the impaired asset.

Property and Equipment

Under the Going Concern Basis, Property and equipment are stated at cost less accumulated depreciation. Depreciation was computed using the straight-line method over the following estimated useful lives:


Leasehold improvements						Lesser of useful life or term of lease
Manufacturing equipment						3-5 years
Computer and office equipment						3 years
Transportation equipment						3 years
Furniture and fixtures						7 years
Equipment under lease						Greater of lease term or 5-10 years

Convertible Notes

The Company has previously issued convertible notes with settlement features that allow the Company to settle the notes by paying or delivering, as applicable, cash, shares of the Company’s common stock or a combination of cash and shares of its common stock, at the Company’s election. In accordance with accounting guidance under the Going Concern Basis for convertible debt instruments that may be settled in cash or other assets on conversion, the Company separated the principal balance between the fair value of the liability component and the common stock conversion feature using a market interest rate for a similar nonconvertible instrument at the date of issuance.

Financing Costs Related to Long-term Debt

Under the Going Concern Basis, costs associated with obtaining long-term debt were deferred and amortized over the term of the related debt using the effective interest method. Such costs are presented as reductions from the carrying amount of the long-term debt liability, consistent with debt discounts, on the Company’s Consolidated Balance Sheet.

Revenue Recognition

The reported results under the Going Concern Basis reflected the application of ASC 606, Revenue from Contracts with Customers (“ASC 606”).

Policy Elections and Practical Expedients Taken

Upon the Company’s adoption of ASC 606, it elected the following practical expedients:

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product revenue.

The Company elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year.

General

In accordance with ASC 606, revenue was recognized from the sale of products when a customer obtained control of promised products and services. The amount of revenue recognized reflects the consideration to which the Company expected to be entitled to receive in exchange for products and services. A five-step model was utilized to achieve the core principle and included the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the performance obligations are satisfied.

The following is a description of principal activities - separated by reportable segments - from which the Company generated its revenue. For more detailed information about reportable segments, see Note 21, Segment Information.

Pharmaceutical

The Company’s Pharmaceutical segment consisted of revenue derived from sales of the Noden Products. Noden’s revenue is included in Loss from discontinued operations.

The agreement between Novartis and Noden DAC provided for various transition periods for development and commercialization activities relating to the Noden Products. For the period from July 1, 2016 through October 4, 2016, all of the Noden Products were distributed by Novartis under the terms of the Noden Purchase Agreement while transfers of the marketing authorization rights were pending. During this time, the Company presented revenue under the Novartis transition arrangement on a “net” basis and established a reserve for retroactive adjustment to the profit transfer with Novartis. As of the third quarter of 2018, Noden Pharma DAC completed the marketing authorization transfers for all territories.

In the United States, the duration of the profit transfer ran from July 1, 2016 through October 4, 2016. Beginning on October 5, 2016, Noden Pharma USA, Inc. distributed the Noden Products in the United States. At such time, the Company presented revenue for all sales in the United States on a “gross” basis, meaning product costs were reported separately and there was no fee to Novartis, and established a reserve for discounts and allowances further described below.

Initially, Novartis distributed the Noden Products on behalf of Noden DAC worldwide and Noden DAC received a profit transfer on such sales. Generally, the profit transfer to Noden DAC was defined as gross revenues less product cost and a low single-digit percentage fee to Novartis. The profit transfer terminated upon the transfer of the marketing authorization from Novartis to Noden DAC in each country. For the period from October 5, 2016 to August 31, 2017, Novartis continued to distribute the Noden Products outside of the United States. Beginning on September 1, 2017, Noden Pharma DAC began distributing the Noden Products to select countries outside the United States. Outside the United States, the profit transfer ended in the first quarter of 2018.

Except for the sales in certain countries outside of the United States preceding the final profit transfer that occurred in the first quarter of 2018, revenues of the Noden Products for the periods herein were recognized on a gross basis.

Noden USA launched an authorized generic of Tekturna in the United States in March 2019.

The Pharmaceutical segment principally generated revenue from products sold to wholesalers and distributors. Customer orders were generally fulfilled within a few days of receipt resulting in minimal order backlog. Contractual performance obligations were usually limited to transfer of the product to the customer. The transfer occurred either upon shipment or upon receipt of the product in certain countries outside the United States after considering when the customer obtained control of the product. In addition, in some countries outside of the United States, the Company sold product on a consignment basis where control was not transferred until the customer resold the product to an end user. At these points, customers were able to direct the use of and obtain substantially all of the remaining benefits of the product.

Sales to customers were initially invoiced at contractual list prices. Payment terms were typically 30 to 90 days based on customary practice in each country. Revenue was reduced from the list price at the time of recognition for expected chargebacks, discounts, rebates, sales allowances and product returns, which were collectively referred to as gross-to-net adjustments. These reductions were attributed to various commercial agreements, managed healthcare organizations and government programs such as Medicare, Medicaid, and the 340B Drug Pricing Program containing various pricing implications such as mandatory discounts, pricing protection below wholesaler list price and other discounts when Medicare Part D beneficiaries were in the coverage gap. These various reductions in the transaction price were estimated using either a most likely amount, in the case of prompt pay discounts, or expected value method for all other variable consideration and were reflected as liabilities and was settled through cash payments, typically within time periods ranging from a few months to one year. Significant judgment is required in estimating gross-to-net adjustments considering legal interpretations of applicable laws and regulations, historical experience, payer channel mix, current contract prices under applicable programs, unbilled claims, processing time lags and inventory levels in the distribution channel.

Customer Credits: The Company’s customers were offered various forms of consideration, including allowances, service fees and prompt payment discounts. The Company expected customers would earn prompt payment discounts and, therefore, the Company deducted the full amount of these discounts from total product sales when revenues were recognized. Service fees were also deducted from total product sales as they were earned.

Rebates and Discounts: Allowances for rebates included mandated discounts under the Medicaid Drug Rebate Program in the United States and mandated discounts in the European Union (“EU”) in markets where government-sponsored healthcare systems are the primary payers for healthcare. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector benefit providers. The accrual for rebates was based on negotiated discount rates and expected utilization as well as historical data. Estimates for expected utilization of rebates were based on data received from the customers. Rebates were generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters’ unpaid rebates.

Chargebacks: Chargebacks are discounts that occur when certain contracted customers, which currently consist primarily of group purchasing organizations, Public Health Service institutions, non-profit clinics, and Federal government entities purchasing via the Federal Supply Schedule, purchased directly from the Company’s wholesalers. Contracted customers generally purchased the product at a discounted price. The wholesalers, in turn, charged back to the Company the difference between the price initially paid by the wholesalers to the Company and the discounted price paid by the contracted customers. In addition to actual chargebacks received, the Company maintained an accrual for chargebacks based on the estimated contractual discounts on products sold for which the chargeback had not been billed.

Medicare Part D Coverage Gap: Medicare Part D prescription drug benefit mandates manufacturers to fund 70% in 2020 and 2019 and 50% in 2018 of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. Estimates for the expected Medicare Part D coverage gap were based on historical invoices received and in part from data received from the Company’s customers. Funding of the coverage gap was generally invoiced and paid in arrears.

Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators.

Returns: Returns were generally estimated and recorded based on historical sales and returns information. Products that exhibited unusual sales or return patterns due to dating, competition or other marketing matters were specifically investigated and analyzed as part of the accounting for sales returns.

Reserves for chargebacks, discounts, rebates, sales allowances and product returns are included within Liabilities held for sale in the Company’s Consolidated Balance Sheet as of December 31, 2019.

For licenses that were bundled with other promises, the Company utilized judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. The Company evaluated the measure of progress each reporting period and, if necessary, adjusted the measure of performance and related revenue recognition.

Medical Devices

The Medical Devices segment principally generated revenue from the sale and lease of the LENSAR® Laser System and the sale of other related products and services prior to the spin-off of LENSAR in October 2020.

For bundled packages, which included the sale or lease of a LENSAR® Laser System and provision of other products and services, the Company accounted for individual products and services separately if they were distinct—i.e. if a product or service was separately identifiable from other items in the bundled package and if the customer could benefit from it on its own or with other resources that are readily available to the customer. The LENSAR Laser System, training and installation services were one performance obligation. The other products and services, including PIDs, procedure licenses, and extended warranty services, which were either sold together with the LENSAR Laser System or on a standalone basis, were all accounted for as separate performance obligations. The transaction price of bundled packages was allocated to each performance obligation on a relative standalone selling price basis. Standalone selling prices were based on observable prices at which the Company separately sold the products or services. If a standalone selling price was not directly observable, the Company estimated the selling price using available observable information.

The Company recognized revenue as the performance obligations are satisfied by transferring control of the product or service to a customer, as described below.

Product Revenue. The Company recognized revenue for the sale of the following products at a point in time:

Equipment. The Company’s LENSAR Laser System sales were recognized as Product revenue when the Company transferred control of the system. This usually occurred after the customer signed a contract, LENSAR installed the system, and LENSAR performed the requisite training for use of the system for direct customers. LENSAR Laser System sales to distributors were recognized as revenue upon shipment as they did not require training and installation.

PID and Procedure Licenses. The LENSAR Laser System requires both a PID and a procedure license to perform each procedure. The Company recognized Product revenue for PIDs when the Company transferred control of the PID. The Company recognized Product revenue for procedure licenses at the point in time when control of the procedure license was transferred to the customer. A procedure license represents a one-time right to utilize the LENSAR Laser System surgical application in connection with a surgery procedure. For the sale of PIDs and procedure licenses, the Company had the option to offer volume discounts to certain customers. To determine the amount of revenue that should be recognized at the time control over these products transferred to the customer, the Company estimated the average per unit price, net of discounts.

Service Revenue. The Company offered an extended warranty that provided additional maintenance services beyond the standard limited warranty. The Company recognized Service revenue from the sale of extended warranties over the warranty period on a ratable basis as the Company stood ready to provide services as needed. Customers had the option of renewing the warranty period, which was considered a new and separate contract.

Lease Revenue. For LENSAR Laser System operating leases, the Company recognized lease revenue over the length of the lease in accordance with ASC Topic 840, Leases, through December 31, 2018 and recognized lease revenue in accordance with ASC Topic 842, Leases, after January 1, 2019. For additional information regarding accounting for leases, see the Leases section within this footnote below and Note 10, Leases.

Contract Costs

The Company offered a variety of commission plans to the Company’s salesforce. Certain compensation under these plans was earned by sales representatives solely as a result of obtaining a customer contract. These are considered incremental costs of obtaining a contract and were eligible for capitalization under ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers, to the extent they were recoverable. For goods or services that were to be delivered over a period that was longer than one year, incremental costs of obtaining a contract were capitalized and expensed over the period the related revenue was recognized. The Company elected not to defer costs related to goods or services that were to be delivered over a period that was one year or less.

Significant Financing Component

The Company provided extended payment terms to certain customers that represented a significant financing component. The Company adjusted the amount of promised consideration for the time value of money using its discount rate and recognized interest income separate from the revenue recognized on contracts with customers.

Limited Warranty Obligations

The Company offered limited warranties on the Company’s products which provided the customer assurance that the product would function as the parties intended because it complied with agreed-upon specifications; therefore, these assurance-type warranties were not treated as a separate revenue performance obligation and were accounted for as guarantees under U.S. GAAP. The Company regularly reviewed its warranty liability and updated those balances based on historical warranty cost trends.

Income Generating Assets

Under the Going Concern Basis, for licenses of intellectual property, if the license to the Company’s intellectual property was determined to be distinct from the other performance obligations identified in the arrangement, the Company recognized revenues from non-refundable, up-front fees allocated to the license when the license was transferred to the customer and the customer was able to use and benefit from the license.

In January 2018, DFM, LLC, a wholly-owned subsidiary of the Company, granted an exclusive license related to certain Direct Flow Medical, Inc. assets in exchange for $0.5 million in cash and up to $2.0 million in royalty payments. The $0.5 million

payment was accounted for in accordance with ASC 606 under which the full cash payment was recognized as revenue in the first quarter of 2018 as DFM, LLC had fulfilled its performance obligation under the agreement. In September 2019, the remaining assets of DFM, LLC were sold for $5.0 million.

Queen et al. Royalty Revenues

Under the Company’s license agreements related to the Queen et al. patents, the Company received royalty payments based upon its licensees’ net sales of covered products. Under the Going Concern Basis, royalties qualify for the sales-and-usage exemption under ASC 606 as (i) royalties are based strictly on the sales-and-usage by the licensee; and (ii) a license of intellectual property is the sole or predominant item to which such royalties relate. Based on this exemption, these royalties were earned under the terms of a license agreement in the period the products were sold by the Company's partner and the Company had a present right to payment. Generally, under these agreements, the Company received royalty reports from its licensees approximately one quarter in arrears; that is, generally in the second month of the quarter after the licensee has sold the royalty-bearing product. The Company recognized royalty revenues when it could reliably estimate such amounts and collectability was reasonably assured. Under this accounting policy, the royalty revenues the Company reported were not based upon estimates, and such royalty revenues were typically reported in the same period in which the Company received payment from its licensees.

Although the last of the Queen et al. patents expired in December 2014, the Company has received royalties beyond expiration based on the terms of its licenses and its legal settlement. Under the terms of the legal settlement between Genentech, Inc. (“Genentech”) and the Company, the first quarter of 2016 was the last period for which Genentech paid royalties to the Company for Avastin®, Herceptin®, Xolair®, Perjeta® and Kadcyla®. Other products from the Queen et al. patent licenses, such as Tysabri®, entitled the Company to royalties following the expiration of its patents with respect to sales of licensed product manufactured prior to patent expiry in jurisdictions providing patent protection licenses. In November 2017, the Company was notified by Biogen, Inc. that product supply for Tysabri® that was manufactured prior to patent expiry and for which the Company would receive royalties, had been extinguished in the United States and was rapidly being reduced in other countries. As a result, royalties from product sales of Tysabri were consecutively lower in 2018 and 2019 during which time they ceased.

Royalty Rights - At Fair Value

Under the Going Concern Basis, the Company accounted for its investments in royalty rights at fair value with changes in fair value presented in earnings. The fair value of the investments in royalty rights was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. These assets were classified as Level 3 assets within the fair value hierarchy, as the Company’s valuation estimates utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Transaction-related fees and costs were expensed as incurred.

Under the Going Concern Basis, the changes in the estimated fair value from investments in royalty rights along with cash receipts in each reporting period were presented together on the Company’s Consolidated Statements of Operations as Loss from discontinued operations before income taxes.

Under the Going Concern Basis, realized gains and losses on royalty rights were recognized as they were earned and when collection was reasonably assured. Royalty Rights revenue was recognized over the respective contractual arrangement period. Critical estimates included product demand and market growth assumptions, inventory target levels, product approval, pricing assumptions and the impact of competition from other branded or generic products. Factors that could cause a change in estimates of future cash flows included a change in estimated market size, a change in pricing strategy or reimbursement coverage, a delay in obtaining regulatory approval, a change in dosage of the product a change in the number of treatments and the entrants of new competitors or generic products.

For each arrangement, the Company is entitled to royalty payments based on revenue generated by the net sales of the product.

Research and Development

Under the Going Concern Basis, the Company expensed research and development costs as incurred. Research and development expenses consisted primarily of engineering, product development, clinical studies to develop and support the Company’s products, regulatory expenses, and other costs associated with products and technologies that were in development. Research and development expenses included employee compensation, including stock-based compensation, supplies, consulting, prototyping, testing, materials, travel expenses, and depreciation.

Foreign Currency Translation

Under the Going Concern Basis, the Company used the U.S. dollar predominately as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar was the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included in the Consolidated Statements of Operations. The aggregate net (losses) gains resulting from foreign currency transactions and remeasurement of foreign currency balances into U.S. dollars that were included in the Consolidated Statements of Operations amounted to a gain of $0.2 million and a loss of $0.5 million and $0.7 million for the eight months ended August 31, 2020 and the years ended December 31, 2019 and 2018, respectively.

Comprehensive Loss

Under the Going Concern Basis, comprehensive loss was comprised of net loss adjusted for other comprehensive loss, using the specific identification method, which included unrealized gains and losses on the Company’s investments in available-for-sale securities, net of tax, which are excluded from the Company’s net loss.

Income Taxes

The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the Consolidated Financial Statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any interest and penalties on uncertain tax positions are included within the tax provision.

Leases

General

In February 2016, the FASB issued ASU No. 2016-02, Leases, that supersedes ASC 840, Leases. Subsequently, the FASB issued several updates to ASU No. 2016-02, codified in ASC Topic 842 (“ASC 842”). The Company adopted ASC 842, Leases, on January 1, 2019 using the modified retrospective method for all leases not substantially completed as of the date of adoption. The reported results for the eight months ended August 31, 2020 and the year ended December 31, 2019 reflect the application of ASC 842 guidance while the reported results for the year ended December 31, 2018 was prepared under the guidance of ASC 840, which is also referred to herein as “legacy GAAP” or the “previous guidance”. The cumulative impact of the adoption of ASC 842 was not material, therefore, the Company did not record any adjustments to retained earnings. As a result of adopting ASC 842, the Company recorded operating lease right-of-use (“ROU”) assets of $2.1 million and operating lease liabilities of $2.1 million, primarily related to corporate office leases, based on the present value of the future lease payments on the date of adoption. Changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently adopted revenue recognition guidance. The adoption of ASC 842 did not materially change how the Company accounted for lessor arrangements.

Under the Going Concern Basis, the Company determined if an arrangement was a lease or contained an embedded lease at inception if it contained the right to control the use of an identified asset under a leasing arrangement with an initial term greater than 12 months. The Company determined whether a contract conveyed the right to control the use of an identified asset for a period of time if the contract contained both the right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. The Company has lease arrangements with lease and non-lease components, which were accounted for separately.

Policy Elections and Practical Expedients Taken

For leases that commenced before the effective date of ASC 842, the Company elected the practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases.

The Company adopted a policy of expensing short-term leases, defined as 12 months or less, as incurred.

The Company’s policy was to exclude from the consideration in a lessor contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the Company from a lessee.

Lessee arrangements

Under the Going Concern Basis, lessee operating leases are included in Other assets, Accrued liabilities, and Other long-term liabilities in the Company’s Consolidated Balance Sheet. The Company does not have lessee financing leases.

Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Under the Going Concern Basis, operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company used the implicit rate when readily determinable at lease inception. As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s remaining lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments was recognized on a straight-line basis as operating expense in the Consolidated Statements of Operations over the lease term.

For lease arrangements with lease and non-lease components where the Company is the lessee, the Company separately accounted for lease and non-lease components, which consists primarily of taxes and common area maintenance costs. Non-lease components were expensed as incurred.

Lessor arrangements

The Company leased medical device equipment to customers in operating lease arrangements generated from its Medical Devices segment.

For lease arrangements with lease and non-lease components where the Company was the lessor, the Company allocated the contract’s transaction price (including discounts) to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. Lease elements generally included a LENSAR Laser System, while non-lease elements generally included extended warranty services, PIDs and procedure licenses. The stand-alone selling prices for the extended warranty services, PIDs and procedure licenses were determined based on the prices at which the Company separately sold such products and services. The LENSAR Laser System stand-alone selling prices were determined using the expected cost plus a margin approach. Allocation of the transaction price was determined at the inception of the lease arrangement. The Company’s leases primarily consisted of leases with fixed lease payments. For those leases with variable lease payments, the variable lease payment was typically based upon use of the leased equipment or the purchase of procedure licenses and PIDs used with the leased equipment. Non-lease components were accounted for under ASC 606. For additional information regarding ASC 606, see Note 20, Revenue from Contracts with Customers.

Some leases included options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically did not offer options to terminate the leases before the end of the lease term. A new contract was generated if a customer intended to continue using the equipment under the initial term and the new contract term was not included in the initial lease term.

In determining whether a transaction should be classified as a sales-type or operating lease, the Company considered the following criteria at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term, (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system, (3) whether the lease term is for the major part of the remaining economic life of the leased system, (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise, and (5)

For operating leases, rental income was recognized on a straight-line basis over the lease term. The cost of customer-leased equipment was recorded within Property and equipment, net in the accompanying Consolidated Balance Sheet and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements was reflected in Cost of product revenue in the accompanying Consolidated Statements of Operations for the eight months ended August 31, 2020 and the year ended December 31, 2019. Some of the Company’s operating leases included a purchase option for the customer to purchase the leased asset at the end of the lease arrangement. The purchase price did not qualify as a bargain purchase option. The Company managed its risk on its investment in the equipment through pricing and the term of the leases. Lessees did not provide residual value guarantees on leased equipment. Equipment returned to the Company could be leased or sold to other customers. Initial direct costs were deferred and recognized over the lease term.

Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The guidance amended the impairment model to utilize an expected loss methodology in place of the incurred loss methodology, resulting in more timely recognition of losses. The Company adopted ASU No. 2016-13 on January 1, 2020 using a modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. As a consequence of adopting ASU 2016-13, the Company’s accounts receivable accounting policy under the Going Concern Basis was updated, as follows:

Accounts and Notes Receivable

The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely and the Company ceases collection efforts. The Company applies the practical expedient for its collateral-dependent notes receivable. Estimated credit losses are based on the fair value of the collateral (less costs to sell, as applicable).

In April 2020, the FASB issued a staff question-and-answer document, “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” (the “COVID-19 Q&A”), to address certain frequently asked questions pertaining to lease concessions arising from the effects of the COVID-19 pandemic. Existing lease guidance requires entities to determine if a lease concession was a result of a new arrangement reached with the lessee (which would be addressed under the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (which would not fall under the lease modification framework). The COVID-19 Q&A clarifies that entities may elect to not evaluate whether lease-related relief granted in light of the effects of COVID-19 is a lease or obligations of the lease. This election is available for concessions that result in the total payments required by the modified contract being substantially the same or less than the total payments required by the original contract.

As a result of the COVID-19 pandemic, LENSAR entered into agreements with 23 customers through which LENSAR agreed to waive monthly rental and minimum monthly license fees ranging from one to four months for an aggregate of $0.9 million of revenue for the eight months ended August 31, 2020, consisting of $0.5 million in Product revenue, $0.3 million in Lease revenue and $0.1 million in Service revenue. In return for these concessions the related contracts were extended by the same number of months waived. No accounts receivable or notes receivable amounts were deemed uncollectible due to COVID-19 during the 2020 periods presented herein; however, the Company considered the effects of COVID-19 in estimating its credit losses for the period.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The Company adopted ASU No. 2018-13 on January 1, 2020. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the

requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company adopted ASU No. 2018-15 on January 1, 2020 using the prospective transition option. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective for public companies for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings/(deficit) in the period of adoption. The Company does not expect this guidance to have a significant impact on its financial statements.

Net Assets in Liquidation

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Net Assets in Liquidation

Upon adoption of the Liquidation Basis on September 1, 2020, the Company estimated the net assets in liquidation, which represents the expected future cash flows related to its remaining assets, liabilities and operating costs through dissolution. The actual cash inflows and outflows may differ materially from the estimated amounts.


(in thousands)
Consolidated Net Equity, as of August 31, 2020	$	425,214

Effect of adopting the liquidation basis of accounting:
Change in the estimated value of royalty rights (1)	13,770
Change in the receivable from the sale of Noden (2)	9,056
Increase in intangible assets (3)	28,702
Change in the estimated value of other assets (4)	(4,813)
Estimated liquidation and future operating costs (5)	(25,376)
Total effect of adopting the liquidation basis of accounting	21,339

Net assets in liquidation, as of September 1, 2020	$	446,553

_______________

(1) The royalty rights consist of Assertio and University of Michigan (“U-M”). The Assertio royalties are valued using undiscounted estimated cash receipts until the estimated date of sale of June 30, 2021, plus a discounted value of the remaining estimated cash flows as an estimate of the expected cash consideration from the sale of these royalty rights at this time. The Company expects it will retain the royalty rights for the U-M royalty asset until its expiration in September 2022. As such, it is valued as the sum of its undiscounted cash receipts until the end of the agreement. Previously, under the Going Concern Basis, royalty rights were valued using discounted cash flow models, see Note 8, Fair Value Measurements.


(in thousands)	August 31, 2020		September 1, 2020		Change
	(Going Concern Basis)		(Liquidation Basis)

Assertio	$	200,463	$	211,626	$	11,163
U-M	17,450		20,057		2,607
Total	$	217,913	$	231,683	$	13,770

(2) Adjustments reflect Liquidation Basis which does not discount future estimated cash receipts. Previously, under the Going Concern Basis we had estimated the fair value of Noden, as an asset held for sale, using a discounted cash flow model, see Note 8, Fair Value Measurements.

(3) The increase in intangible assets represents the difference between the existing assets and liabilities of LENSAR upon adoption of Liquidation Basis and its enterprise value that was distributed to PDL shareholders in the spin-off of LENSAR on October 1, 2020. The enterprise value was determined through an analysis of comparable public companies combined with cash flow forecasts.

(4) Adjustments to other assets include a liquidity discount for the Evofem warrants and the write-off of certain assets that will not be converted to cash such as prepaid expenses, fixed assets and right of use assets.

(5) Represents estimated future expenses related to operating the business through dissolution and settlement of future liabilities. Amounts include estimated compensation, legal and other professional fees, insurance, taxes, estimated costs to dispose of our assets and other miscellaneous expenses. Certain of the estimated costs to dispose of our assets had already been accrued under the Going Concern Basis and were presented net within our assets held for sale.

Assets Held for Sale (Notes)

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4. Discontinued Operations Classified as Assets Held for Sale

As a result of the above-described monetization strategy and subsequent efforts to monetize the Company’s key assets, representing a strategic shift in the operations of the Company, the assets held for sale and discontinued operations criteria were met for the Company’s royalty assets (included in the Income Generating Assets segment) and its Noden subsidiaries (Pharmaceutical segment) during the first quarter of 2020. The discontinued operations criteria were met for the Company’s investment in Evofem (Strategic Positions segment) during the second quarter of 2020 after the Company distributed all of its shares of common stock of Evofem to the Company’s stockholders. The historical financial results of the investment in Evofem, royalty assets and Noden are reflected in the Company’s consolidated financial statements as discontinued operations for all Going Concern Basis periods presented herein, and assets and liabilities were retrospectively reclassified as assets and liabilities held for sale.

On July 30, 2020, the Company signed a definitive agreement for the sale of the Company’s interest in Noden DAC and Noden USA to CAT Capital Bidco Limited (“Stanley Capital”). In accordance with the terms of the agreement, the Company expects to receive consideration of up to $52.8 million. Stanley Capital made an initial cash payment to the Company of $12.2 million on September 9, 2020, the closing date of the transaction. The Company is also entitled to recover $0.5 million related to value-added tax (“VAT”) for inventory purchases from Novartis. The agreement provides for an additional $33.0 million to be paid to the Company in twelve equal quarterly installments from January 2021 to October 2023. An additional $3.9 million will be paid in four equal quarterly installments from January 2023 to October 2023. The agreement also provides for the potential for additional contingent payments to the Company. The Company is entitled to receive $2.5 million upon Stanley Capital or any of its affiliates entering into a binding agreement for a specified transaction within one year of the closing date. The Company is also entitled to 50% of a license fee from a third party distributor within 10 days of receipt by Noden. Upon closing, the Company recorded a gain of $0.2 million. In connection with the closing of the transaction, the guaranty agreement between Novartis and the Company, which guaranteed certain payments owed to Novartis by Noden, was terminated. As of December 31, 2020, under the Liquidation Basis, the remaining receivable from the sale of Noden was $39.4 million and is included in “Receivables from asset sales” in the Statement of Net Assets in Liquidation. Refer to Note 3, Net Assets in Liquidation, for a discussion of the valuation of the Noden asset sale receivable under the Liquidation Basis.

On August 31, 2020, the Company announced the signing and closing of a definitive agreement for the sale of its royalty interests for Kybella®, Zalviso®, and Coflex® to SWK Funding, LLC, a wholly owned subsidiary of SWK Holdings Corporation, for $4.35 million in cash.

Components of amounts reflected in Loss from discontinued operations are as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
Revenues
Product revenue, net	$	29,479	$	55,093	$	80,796
Royalty rights - change in fair value	(8,804)		(31,042)		85,287
Total revenues	20,675		24,051		166,083
Operating expenses
Cost of product revenue (excluding intangible asset amortization and impairment)	17,576		36,343		34,906
Amortization of intangible assets	389		5,016		14,536
General and administrative	6,105		7,264		11,720
Sales and marketing	257		1,675		10,800
Research and development	—		(41)		196
Impairment of intangible assets	—		22,490		152,330
Change in fair value of anniversary payment and contingent consideration	—		—		(42,000)
Total operating expenses	24,327		72,747		182,488
Operating loss from discontinued operations	(3,652)		(48,696)		(16,405)
Non-operating (expense) income, net
Equity affiliate - change in fair value	(25,365)		36,402		—
Loss on classification as held for sale	(28,904)		—		—
Total non-operating (expense) income, net	(54,269)		36,402		—
Loss from discontinued operations before income taxes	(57,921)		(12,294)		(16,405)
Income tax (benefit) expense from discontinued operations	(23,006)		1,303		19,689
Loss from discontinued operations	$	(34,915)	$	(13,597)	$	(36,094)

The carrying amounts of the major classes of assets reported as “Assets held for sale” on the Company’s Consolidated Balance Sheet consisted of the following:


(in thousands)	December 31, 2019

Cash and cash equivalents	$	24,469
Accounts receivable, net	6,993
Inventory	31,712
Prepaid and other current assets	7,192
Property and equipment, net	2,960
Royalty rights - at fair value	266,196
Investment in equity affiliate	82,267
Intangible assets, net	10,112
Other assets	15,956
Total assets held for sale	$	447,857

The carrying amounts of the major classes of liabilities reported as “Liabilities held for sale” on the Company’s Consolidated Balance Sheet consisted of the following:


(in thousands)	December 31, 2019

Accounts payable	$	14,695
Accrued liabilities	16,400
Other long-term liabilities	120
Total liabilities held for sale	$	31,215

Cash Equivalents and Investments

12 Months Ended

Dec. 31, 2020

Cash and Cash Equivalents [Abstract]

Cash Equivalents and Investments

. Cash and Cash Equivalents

As of December 31, 2020 and 2019, the Company had invested its excess cash balances primarily in cash and money market funds. The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

The following table summarizes the Company’s cash and cash equivalents by significant investment category reported as cash and cash equivalents on the Consolidated Statement of Net Assets and the Consolidated Balance Sheet as of December 31, 2020 and 2019, respectively:


(in thousands)	December 31, 2020		December 31, 2019 (1) (2)
	(Liquidation Basis)		(Going Concern Basis)
Cash	$	75,681	$	37,718
Money market funds	51,161		131,264


Total	$	126,842	$	168,982

________________

(1) The amounts exclude $24.5 million of cash at Noden classified as held for sale as of December 31, 2019. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

(2) The table above includes amounts held by LENSAR as of December 31, 2019. LENSAR was spun-off on October 1, 2020.

The Company recognized approximately $0.8 million of gains on sales of available-for-sale securities in the year ended December 31, 2018. As of December 31, 2020 and 2019, the Company did not have any available-for-sale securities.

Inventories (Notes)

12 Months Ended

Dec. 31, 2020

Inventory [Line Items]

Inventory Disclosure [Text Block]

. Inventories

Inventories under the Going Concern Basis consisted of the following:


(in thousands)	December 31, 2019

Raw materials	$	3,739
Work in process	1,170
Finished goods	3,152
Total inventories (1) (2)	$	8,061

________________

(1) The amounts exclude $31.7 million of inventory at Noden classified as held for sale as of December 31, 2019. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information. Noden was sold in September 2020.

(2) The table above includes amounts held by LENSAR as of December 31, 2019. LENSAR was spun-off on October 1, 2020.

Fair Value Measurements

8 Months Ended

Aug. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

. Fair Value Measurements

The fair value of the Company’s financial instruments under the Going Concern Basis are estimates of the amounts that would be received if the Company were to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The assets and liabilities are categorized and disclosed in one of the following three categories:

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 2 – based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable.

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table presents the fair value of the Company’s financial instruments measured at fair value on a recurring basis by level within the valuation hierarchy under the Going Concern Basis:


	December 31, 2019
(in thousands)		Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds		$	131,264	$	—	$	—	$	131,264
Corporate securities (1)		82,267		—		—		82,267
Warrants (2)		—		14,152		—		14,152
Royalty rights - at fair value (3)		—		—		266,196		266,196
Total		$	213,531	$	14,152	$	266,196	$	493,879

___________________

(1) Corporate securities are classified as “Long-term assets held for sale” on the December 31, 2019 Consolidated Balance Sheet.

(2) Warrants consist of Evofem warrants, which are classified as “Long-term assets held for sale” and CareView Communications, Inc. (“CareView”) warrants, classified as “Other assets” on the Consolidated Balance Sheet as of December 31, 2019.

(3) Royalty rights are classified as “Long-term assets held for sale” on the Consolidated Balance Sheet as of December 31, 2019.

Money Market Funds - The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

Corporate Securities - Corporate securities consisted of common stock shares of Evofem. For additional information, see Note 4, Discontinued Operations Classified as Assets Held for Sale, and Note 5, Investment in Evofem Biosciences, Inc.

Warrants - Warrants consist of rights to purchase shares of common stock in Evofem and CareView, see Note 4, Discontinued Operations Classified as Assets Held for Sale, Note 5, Investment in Evofem Biosciences, Inc., and Note 9, Notes and Other Long-Term Receivables. The fair value of the warrants is based upon recently quoted market prices of the underlying equity security and the Black-Scholes option pricing model and adjusted by an estimated discount to sell.

Royalty Rights - At Fair Value

During the quarter ended March 31, 2020, it was determined that the Company’s royalty rights assets met the criteria as an asset held for sale, see Note 4, Discontinued Operations Classified as Assets Held for Sale. Assets classified as held for sale are reported at the lower of their carrying value or fair value less costs to sale under the Going Concern Basis. The Company historically accounted for such royalty rights assets at fair value, which, as discussed below, primarily reflected the expected future cash to be received but did not consider the expected costs to sell the assets. The Company’s royalty rights assets are comprised of several separate and distinct royalty rights.

Assertio (Depomed) Royalty Agreement

On October 18, 2013, the Company entered into the Royalty Purchase and Sale Agreement (the “Assertio Royalty Agreement”) with Assertio Therapeutics, Inc. (formerly known as Depomed, Inc.), and Depo DR Sub, LLC (together, “Assertio”), whereby the Company acquired the rights to receive royalties and milestones payable on sales of five Type 2 diabetes products licensed by Assertio in exchange for a $240.5 million cash payment. Total consideration was $241.3 million, which was comprised of the $240.5 million cash payment to Assertio and $0.8 million in transaction costs.

The rights acquired included Assertio’s royalty and milestone payments accruing from and after October 1, 2013: (a) from Santarus, Inc., which was subsequently acquired by Salix Pharmaceuticals, Inc., which itself was acquired by Valeant Pharmaceuticals International, Inc. (“Valeant”), which, in July 2018, changed its name to Bausch Health Companies Inc. (“Bausch Health”) with respect to sales of Glumetza (metformin HCL extended-release tablets) in the United States; (b) from Merck & Co., Inc. with respect to sales of Janumet® XR (sitagliptin and metformin HCL extended-release tablets); (c) from Janssen Pharmaceutica N.V. with respect to potential future development milestones and sales of its approved fixed-dose combination of Invokana® (canagliflozin, a sodium glucose cotransporter 2 (SGLT2) inhibitor) and extended-release metformin tablets, marketed as Invokamet XR®; (d) from Boehringer Ingelheim and Eli Lilly (“Lilly”) and Company with respect to

potential future development milestones and sales of the investigational fixed-dose combinations of drugs and extended-release metformin subject to Assertio’s license agreement with Boehringer Ingelheim, including its approved products, Jentadueto XR® and Synjardy XR®; and (e) from LG Chem, Ltd. and Bausch Health for sales of extended-release metformin tablets in Korea and Canada, respectively.

The Company determined that its royalty purchase interest in Depo DR Sub, LLC represented a variable interest in a variable interest entity. However, the Company did not have the power to direct the activities of Depo DR Sub, LLC that most significantly impact Depo DR Sub, LLC’s economic performance and was not the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC was not subject to consolidation by the Company.

On August 2, 2018, PDL Investment Holding, LLC (“PDLIH”), a wholly-owned subsidiary of the Company and assignee from the Company under the Assertio Royalty Agreement, entered into an amendment to the Assertio Royalty Agreement with Assertio. Pursuant to the amendment, PDLIH purchased all of Assertio’s remaining interests in royalty and milestone payments payable on sales of Type 2 diabetes products licensed by Assertio for $20.0 million. Prior to the amendment, the Assertio Royalty Agreement provided that the Company would have received all royalty and milestone payments due under license agreements between Assertio and its licensees until the Company received payments equal to two times the cash payment it made to Assertio, or approximately $481.0 million, after which all net payments received by Assertio would have been shared equally between the Company and Assertio. Following the amendment, the Assertio Royalty Agreement provides that the Company will receive all royalty and milestone payments due under the license agreements between Assertio and its licensees. After the amendment, the Company elected to continue to follow the fair value option and carry the financial asset at fair value.

The Assertio Royalty Agreement terminates on the third anniversary following the date upon which the later of the following occurs: (a) October 25, 2021, or (b) at such time as no royalty payments remain payable under any license agreement and each of the license agreements has expired by its terms.

As of December 31, 2018, in conjunction with the amendment described above, the Company was provided the power to direct the activities of Depo DR Sub, LLC and is the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC is subject to consolidation by the Company. As of December 31, 2020, Depo DR Sub, LLC did not have any assets or liabilities of value for consolidation with the Company.

The financial asset acquired represents a single unit of accounting. Under the Going Concern Basis, this financial asset is classified as a Level 3 asset as of December 31, 2019 within the fair value hierarchy, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by regulatory agencies outside of the United States. The estimated fair value was determined by using a discounted cash flow analysis related to the expected amount and timing of future cash flows to be generated by each licensed product. The discounted cash flows were based upon expected royalties from sales of licensed products over approximately a nine-year period. Significant judgment is required in selecting appropriate discount rates. The discount rates utilized range from 10% to 24%.

As of December 31, 2020, under the Liquidation Basis, the expected cash realizable value of the Assertio royalty asset was $204.5 million and included in the “Royalty assets” in the Statement of Net Assets in Liquidation. Refer to Note 3, Net Assets in Liquidation, for a discussion of the valuation of Assertio under the Liquidation Basis.

Viscogliosi Brothers Royalty Agreement

On June 26, 2014, the Company entered into a Royalty Purchase and Sale Agreement (the “VB Royalty Agreement”) with Viscogliosi Brothers, LLC (“VB”) whereby VB conveyed to the Company the right to receive royalties payable on sales of a spinal implant that received pre-market approval from the FDA held by VB and commercialized by Paradigm Spine, LLC (“Paradigm Spine”) in exchange for a $15.5 million cash payment, less fees. Paradigm Spine was acquired in March 2019 by RTI Surgical Holdings, Inc.

The royalty rights acquired included royalties accruing from and after April 1, 2014. Under the terms of the VB Royalty Agreement, the Company was eligible to receive all royalty payments due to VB pursuant to certain technology transfer agreements between VB and Paradigm Spine until the Company received payments equal to 2.3 times the cash payment made to VB, after which all rights to receive royalties would be returned to VB. VB’s ability to repurchase the royalty right for a specified amount expired on June 26, 2018.

In August 2020, the Company sold the royalty rights to a third-party for $4.2 million. No gain or loss was recognized on the date of sale due to an adjustment to the royalty rights fair value in the prior quarter that was informed by bids received.

University of Michigan Royalty Agreement

On November 6, 2014, the Company acquired a portion of all royalty payments of the U-M worldwide royalty interest in Cerdelga® (eliglustat) for $65.6 million pursuant to the Royalty Purchase and Sale Agreement with U-M (the “U-M Royalty Agreement”). Under the terms of the U-M Royalty Agreement, the Company receives 75% of all royalty payments due under the U-M license agreement with Genzyme Corporation, a Sanofi company (“Genzyme”) until expiration of the licensed patents, excluding any patent term extension. Cerdelga, an oral therapy for adult patients with Gaucher disease type 1, was developed by Genzyme. Cerdelga was approved in the United States in August 2014, in the European Union (“EU”) in January 2015, and in Japan in March 2015. In addition, marketing applications for Cerdelga are under review by other regulatory authorities. While marketing applications have been approved in the United States, the EU and Japan, national pricing and reimbursement decisions are delayed in some countries.

The estimated fair value of the royalty right at December 31, 2019, was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. Under the Going Concern Basis, this asset was classified as a Level 3 asset as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The estimated fair value of the financial asset acquired was determined by using a discounted cash flow analysis related to the expected amount and timing of future cash flows. The discounted cash flow was based upon expected royalties from sales of licensed product over approximately a three-year period. Significant judgment is required in selecting the appropriate discount rate. The discount rate utilized was approximately 12.8%.

As of December 31, 2020, under the Liquidation Basis, the expected cash realizable value of the Cerdelga royalty asset was $15.5 million and included in the “Royalty assets” in the Statement of Net Assets in Liquidation. Refer to Note 3, Net Assets in Liquidation, for a discussion of the valuation of the U-M Royalty Agreement under the Liquidation Basis.

AcelRx Royalty Agreement

On September 18, 2015, the Company entered into a royalty interest assignment agreement (the “AcelRx Royalty Agreement”) with ARPI LLC, a wholly-owned subsidiary of AcelRx Pharmaceuticals, Inc. (“AcelRx”), whereby the Company acquired the rights to receive a portion of the royalties and certain milestone payments on sales of Zalviso® (sufentanil sublingual tablet system) in the EU, Switzerland and Australia by AcelRx’s commercial partner, Grünenthal, in exchange for a $65.0 million cash payment. Under the terms of the AcelRx Royalty Agreement, the Company was eligible to receive 75% of all royalty payments and 80% of the first four commercial milestone payments due under AcelRx’s license agreement with Grünenthal until the earlier to occur of (i) receipt by the Company of payments equal to three times the cash payments made to AcelRx and (ii) the expiration of the licensed patents. Zalviso received marketing approval by the European Commission in September 2015. Grünenthal launched Zalviso in the second quarter of 2016 and the Company started to receive royalties in the third quarter of 2016. On May 15, 2020, AcelRx received notice that the product marketer of Zalviso, Grünenthal GmbH, would exercise its right to terminate the license agreement with AcelRx, effective as of 180 days from the date of the notice. AcelRx is obligated to use commercially reasonable efforts to find a new license agreement under the terms no less favorable than those in the license with Grünenthal.

In August 2020, the Company sold the asset to a third-party for zero consideration. No gain or loss was recognized on the date of sale, due to an adjustment to the royalty rights fair value in the prior quarter that resulted from the notification that the license agreement was terminated by the marketer of the product.

Kybella Royalty Agreement

On July 8, 2016, the Company entered into a royalty purchase and sales agreement with an individual, whereby the Company acquired that individual’s rights to receive certain royalties on sales of KYBELLA® by Allergan plc in exchange for a $9.5 million cash payment and up to $1.0 million in future milestone payments based upon product sales targets. The Company started to receive royalty payments during the third quarter of 2016.

In August 2020, the Company sold the asset to a third-party for $0.2 million. No gain or loss was recognized on the date of sale, due to an adjustment to the royalty rights fair value in the prior quarter that was informed by bids received.

The following tables summarize the changes in Level 3 Royalty Right Assets and the gains and losses included in earnings for the eight months ended August 31, 2020 under the Going Concern Basis:


Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Right Assets

(in thousands)				Royalty Rights - At Fair Value
Fair value as of December 31, 2019					$	266,196



	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		(8,804)
		Cash received from royalty rights		(35,129)
			Total net change in fair value for the period		(43,933)
	Sale of royalty rights				(4,350)

Fair value as of August 31, 2020					$	217,913

The table above does not include the aggregate remaining estimated cost to sell the royalty right assets of $4.6 million.


Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Right Assets
	Fair Value as of		Sale of		Royalty Rights -		Fair Value as of
(in thousands)	December 31, 2019		Royalty Rights (1)		Change in Fair Value		August 31, 2020 (2)
Assertio	$	218,672	$	—	$	(18,209)	$	200,463
VB	13,590		(4,182)		(9,408)		—
U-M	20,398		—		(2,948)		17,450

AcelRx	12,952		—		(12,952)		—

KYBELLA	584		(168)		(416)		—
	$	266,196	$	(4,350)	$	(43,933)	$	217,913

_______________

(1) In August 2020 the Company sold the royalty rights to VB, AcelRx, and KYBELLA to a third-party.

(2) Excludes the aggregate remaining estimated costs to sell of $4.6 million.

Gains and losses from changes in Level 3 assets are included in earnings under the Going Concern Basis and are presented as “Royalty rights - change in fair value” as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019


Total change in fair value for the period included in earnings for royalty right assets held at the end of the reporting period	$	(8,804)	$	(31,042)

Assets/Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets consist of long-lived assets, including property and equipment and intangible assets and the shares of AEON common stock, received in connection with the loans made to LENSAR by the Company prior to its acquisition of LENSAR.

The Company’s carrying value of the 1.7 million shares of AEON common stock as of December 31, 2019 under the Going Concern Basis was $6.6 million based on an estimated per share value of $3.84, which was established by a valuation performed when the shares were acquired. The value of the Company’s investment in AEON is not readily determinable as AEON’s shares are not publicly traded. Under the Going Concern Basis, the Company evaluated the fair value of this investment by performing a qualitative assessment each reporting period. If the results of this qualitative assessment indicate that the fair value was less than

the carrying value, the investment is written down to its fair value. Based on additional financial information received from AEON, the Company performed an analysis on August 31, 2020 and concluded the investment was impaired and wrote it down to $1.0 million. The loss is reported as Loss on investment on the Company’s Consolidated Statement of Operations for the eight months ended August 31, 2020. This investment is included in Other Assets on the Company’s Consolidated Statement of Net Assets as of September 30, 2020 and as Other long-term assets on the December 31, 2019 Consolidated Balance Sheet. For additional information on the AEON investment, see Note 9, Notes and Other Long-Term Receivables. As of December 31, 2020, under the Liquidation Basis, the expected cash realizable value of the AEON asset was $1.0 million and included in “Other assets” on the Statement of Net Assets in Liquidation. Refer to Note 3, Net Assets in Liquidation, for a discussion of the valuation of AEON under the Liquidation Basis.

During the quarter ended March 31, 2020, it was determined that Noden met the criteria as an asset held for sale. As a result of the Company’s analysis of the fair value of Noden, the Company recorded a loss on classification as held for sale of $6.7 million during the quarter ended March 31, 2020 of which $1.8 million related to the estimated costs to sell Noden and $4.9 million related to the difference in carrying value versus fair value. The fair value calculation was made using a discounted cash flow model, utilizing a discount rate of approximately 19%, and included level 3 inputs. During the quarter ended June 30, 2020, the Company recorded an additional loss of $16.8 million related primarily to the difference in carrying value and fair value. The reduction in fair value reflected lower estimated sales proceeds as informed by the Company’s sales process. At June 30, 2020, the fair value calculation was made using a discounted cash flow model, utilizing a discount rate of approximately 17%, and included level 3 inputs. For information on the sale of the business in September 2020, see Note 4, Discontinued Operations Classified as Assets Held for Sale.

Assets/Liabilities Not Subject to Fair Value Recognition

The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy:


	December 31, 2019
(in thousands)		Carrying Value		Fair Value Level 2		Fair Value Level 3
Assets:
Wellstat Diagnostics note receivable		$	50,191	$	—	$	55,389
Hyperion note receivable		1,200		—		1,200








CareView note receivable		690		—		690
Total		$	52,081	$	—	$	57,279
Liabilities:




December 2021 Notes		$	16,950	$	20,978	$	—
December 2024 Notes		10,300		12,953		—

Total		$	27,250	$	33,931	$	—

There were no impairment losses on notes receivable in the eight months ended August 31, 2020. During the years ended December 31, 2019 and 2018 the Company recorded impairment losses of $10.8 million and $8.2 million, respectively, for the note receivable with CareView.

The Company had two notes receivable assets as of December 31, 2019 under the Going Concern Basis. The notes receivable were classified under the Going Concern Basis as Level 3 in the fair value hierarchy as the Company’s valuations utilized significant unobservable inputs, including estimates of future revenues, discount rates, expectations about settlement, terminal values, required yield and the value of underlying collateral. The Company engages third-party valuation experts when deemed necessary to assist in evaluating its investments and the related inputs needed to estimate the fair value of certain investments.

As of December 31, 2019 under the Going Concern Basis, the estimated fair value of the CareView note receivable was determined using a liquidation analysis. A liquidation analysis considers the asset side of the balance sheet and adjusts the value in accordance with the relative risk associated with the asset and the probable liquidation value. The asset recovery rates varied by asset. As of December 31, 2019 under the Going Concern Basis, the estimated fair value of the Wellstat Diagnostics note receivable was determined by using an asset approach and discounted cash flow model related to the underlying collateral and adjusted to consider estimated costs to sell the asset.

The Company’s liabilities not subject to fair value recognition under the Going Concern Basis consist of its 2021 and 2024 convertible notes. The fair values of the Company’s convertible senior notes were determined using quoted market pricing and were classified as Level 2 in the fair value hierarchy.

The following table represents significant unobservable inputs used in determining the estimated fair value of the Wellstat Diagnostics note receivable investment under the Going Concern Basis:

Asset

Valuation
Technique

Unobservable
Input

December 31,
2019

Wellstat Diagnostics

Wellstat Guarantors intellectual property

Income Approach

Discount rate

12%

Undiscounted royalty amount

$21 million

Settlement Amount

Income Approach

Discount rate

15%

Undiscounted settlement amount

$28 million

Real Estate Property

Market Approach

Annual appreciation rate

—%

Estimated realtor fee

Undiscounted market value

$16 million

Lessee, Operating Leases [Text Block]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases (Notes)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

. Leases

Lessee arrangements

As of December 31, 2020, the Company has an operating lease for corporate offices. The Company’s operating lease has a remaining lease term of two years, with an option to extend the lease for up to six months.

Prior to the sale of Noden and the spin-off of LENSAR, the Company also included operating leases for their corporate offices and certain equipment.

The components of lease expense from continuing operations under the Going Concern Basis were as follows:


	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Operating lease cost	$	532	$	760
Short-term lease cost	49		79
Total lease cost	$	581	$	839

Supplemental cash flow information related to leases for continuing operations is as follows:


	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	522	$	762
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	3,320	$	2,055

The following table presents the lease balances relating to continuing operations within the Consolidated Balance Sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases (in thousands):

Operating Leases

Classification

December 31, 2019

Operating lease ROU assets

Other assets

1,359

Operating lease liabilities, current

Accrued liabilities

760

Operating lease liabilities, long-term

Other long-term liabilities

634

Total operating lease liabilities

1,394

Weighted-average remaining lease term

1.9 years

Weighted-average discount rate

6.5

_______________

Operating leases above exclude right of use assets and liabilities of $0.3 million classified as held for sale in the Consolidated Balance Sheet as of December 31, 2019.

Maturities of operating lease liabilities as of December 31, 2020 are as follows (in thousands):


Fiscal Year	Amount

2021	$	37
2022	38
2023	—
2024	—
2025	—
Thereafter	—
Total operating lease payments	75
Less: imputed interest	—
Total operating lease liabilities	$	75

Lessor arrangements

The Company had operating leases for medical device equipment generated from its Medical Devices segment. The Company’s leases had remaining lease terms of less than one to four years, some of which included options to extend the leases on a month-to-month basis if the customer did not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically did not offer options to terminate the leases before the end of the lease term. The Medical Devices segment was spun-off on October 1, 2020.

The components of lease income under the Going Concern Basis were as follows:

Eight Months Ended

Year Ended

(in thousands)

Classification

August 31, 2020

December 31, 2019

Operating lease income

Lease revenue

2,139

5,072

Under the Going Concern Basis, and prior to the spin-off of LENSAR, Equipment under lease was stated at cost less accumulated depreciation and was classified as Property and equipment, net on the Consolidated Balance Sheet. Depreciation was computed using the straight-line method over an estimated useful life of the greater of the lease term or five years to ten years. Equipment under lease was as follows:


(in thousands)	December 31, 2019

Equipment under lease	$	6,652
Less accumulated depreciation	(5,231)
Equipment under lease, net	$	1,421

Depreciation expense on equipment under lease amounted to $1.0 million, $2.1 million and $2.7 million for the eight months ended August 31, 2020 and the years ended December 31, 2019 and 2018, respectively.

Property and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

. Property and Equipment

Property and equipment, net under the Going Concern Basis consisted of the following:


(in thousands)	December 31, 2019
Leasehold improvements	$	350
Manufacturing equipment	1,550
Computer and office equipment	9,101
Furniture and fixtures	136
Equipment under lease	6,652
Transportation equipment	67
Total	17,856
Less accumulated depreciation	(16,040)
Construction in progress	744
Property and equipment, net (1) (2)	$	2,560

________________

(1) The amounts above exclude $3.0 million of Property and Equipment at Noden classified as held for sale as of December 31, 2019. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

(2) The amounts above include amounts held by LENSAR which was spun-off on October 1, 2020.

Depreciation expense on property and equipment amounted to $1.0 million, $2.7 million and $3.1 million for the eight months ended August 31, 2020 and the years ended December 31, 2019 and 2018, respectively.

Intangible Assets and Goodwill (Notes)

12 Months Ended

Dec. 31, 2020

Intangible Assets and Goodwill [Abstract]

Intangible Assets Disclosure [Text Block]

12. Intangible Assets

Noden

On June 8, 2018, Noden DAC entered into a Settlement Agreement (the “Settlement Agreement”) with Anchen Pharmaceuticals, Inc. and its affiliates (“Anchen”) to resolve the patent litigation relating to infringement of U.S. Patent No. 8,617,595 (the “‘595 Patent”) based on their submission of an Abbreviated New Drug Application (“ANDA”) seeking authorization from the FDA to market a generic version of aliskiren, the active ingredient in the Tekturna and Tekturna HCT drug. Under the Settlement Agreement, Anchen, the sole ANDA filer of which the Company is aware, agreed to not commercialize its generic version of aliskiren prior to March 1, 2019. Per the Settlement Agreement, Anchen may commercialize their formulation of aliskiren, but is not permitted to commercialize a copy of Tekturna.

Accordingly, under the Going Concern Basis, management evaluated the ongoing value of the Noden DAC asset group based upon the probability of Anchen’s market entry of a generic version of aliskiren in the United States and the associated cash flows and conducted a test for impairment. Due to the increased probability of a generic version of aliskiren being launched in the United States, the Company revised its estimates of future cash flows and as a result of this analysis, determined that the sum of undiscounted cash flows was not greater than the carrying value of the assets. Therefore, the Company performed a discounted cash flow analysis to estimate the fair value of the asset group in accordance with ASC 360, Impairment or Disposal of Long-lived Assets. The cash flows used in this analysis were those expected to be generated by market participants, discounted to reflect an appropriate amount of risk, which was determined to be 21%. The Company concluded that the Noden DAC acquired product rights and customer relationship long-lived assets, with a carrying amount of $192.5 million, were no longer recoverable and wrote them down to their estimated fair value of $40.1 million, resulting in an impairment charge of $152.3 million in the second quarter of 2018. This write-down is included in Loss from discontinued operations before income taxes in the Consolidated Statement of Operations and Net cash used in operating activities - discontinued operations in the Consolidated Statement of Cash Flows for the year ended December 31, 2018.

At December 31, 2019, due to the Company’s monetization strategy and updated forecasts for Noden, the Company revised its estimates of future cash flows and as a result of this analysis, determined that the sum of undiscounted cash flows was not greater than the carrying value of the assets. Therefore, the Company performed a discounted cash flow analysis to estimate the fair value of the asset group in accordance with ASC 360. The cash flows used in this analysis were those expected to be generated by market participants, discounted to reflect an appropriate amount of risk, which was determined to be 19%. The Company concluded that the Noden DAC acquired product rights and customer relationship long-lived assets, with a carrying amount of

$32.6 million, were no longer recoverable and wrote them down to their estimated fair value of $10.1 million, resulting in an impairment charge of $22.5 million in the fourth quarter of 2019. This write-down is included in Loss from discontinued operations before income taxes in the Consolidated Statement of Operations and Net cash used in operating activities - discontinued operations in the Consolidated Statement of Cash Flows for the year ended December 31, 2019.

During the fourth quarter of 2019, while performing its impairment analysis on its Noden intangible assets, the Company identified an error in the 2018 impairment charge recorded on its Noden intangible assets, which resulted in a $10.5 million overstatement of the 2018 impairment charge. As of December 31, 2018, the net carrying value of the intangible asset was understated by $9.8 million with a corresponding overstatement of net loss for the year ended December 31, 2018. This prior year impairment expense error was corrected as an out of period adjustment in 2019 in connection with the further impairment of the intangible asset to $10.1 million.

Based on an analysis of Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections (“ASC 250”), Staff Accounting Bulletin 99, Materiality (“SAB 99”) and Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company determined that these errors were immaterial to the previously issued annual and interim financial statements. The amount of the intangible assets and accumulated amortization were corrected as of December 31, 2019.

LENSAR

In April 2019, LENSAR acquired certain intellectual property from a third-party for $2.0 million in cash and obligations to pay a $0.3 million milestone payment and royalties upon the completion of certain events, which were met prior to December 31, 2019.

In September 2019, LENSAR exclusively licensed certain intellectual property from a third-party for $3.5 million in cash for use in research and development activities. The amount was immediately expensed and is included in Research and development expense in the Consolidated Statement of Operations for the year ended December 31, 2019.

LENSAR was spun-off on October 1, 2020.

The components of intangible assets as of December 31, 2019 were as follows:


	December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:

Customer relationships 1, 3	$	4,045	$	(884)	$	3,161
Acquired technology 1, 2, 4	11,500		(1,741)		9,759
Acquired trademarks 1	570		(304)		266
Total 5	$	16,115	$	(2,929)	$	13,186

_______________

1 The Company acquired certain intangible assets as part of its acquisition of LENSAR in May 2017. These assets were being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships were being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

2 The Company acquired certain intangible assets as part of the foreclosure on certain of Direct Flow Medical assets. In August 2019, the Company sold the DFM, LLC intangible assets for $5.0 million in cash and a single-digit percentage of any net final award received as part of the acquirer’s monetization process using the intangible assets. Prior to the sale, these intangible assets were being amortized on a straight-line basis over a weighted-average period of 10 years.

3 LENSAR acquired certain intangible assets for customer relationships from Precision Eye Services, which were being amortized using a double-declining method over a period of 20 years.

4 LENSAR acquired certain intangible assets from a third-party in 2019, which were being amortized on a straight-line basis over a period of 15 years.

5 The Company acquired certain intangible assets as part of the Noden transaction. Those intangible assets are excluded from the table above and included in “Assets held for sale” as of December 31, 2019. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Amortization expense related to our continuing operations for the eight months ended August 31, 2020 and the years ended December 31, 2019 and 2018 was $0.8 million, $1.3 million and $1.3 million, respectively.

Accrued Liabilities

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities under the Going Concern Basis consisted of the following:


(in thousands)	December 31, 2019

Accrued rebates, chargebacks and other revenue reserves	$	5
Deferred revenue	959
Compensation	6,823
Interest	70




Legal	921
Other	3,145
Total (1) (2)	$	11,923

________________

(1) The amounts above exclude $16.4 million of accrued liabilities at Noden classified as held for sale as of December 31, 2019. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

(2) The amounts above include amounts held by LENSAR which was spun-off on October 1, 2020.

Upon adoption of the Liquidation Basis, the Company accrued for all estimated cash expenditures. These expenses include $9.3 million in accrued compensation and benefit costs, $9.0 million in deferred tax liabilities (see Note 23, Income Taxes, for additional information), $4.0 million in estimated costs to dispose of the Assertio asset and $7.3 million in estimated future expenses related to operating the business through dissolution and settlement of future liabilities. Amounts include estimated compensation, legal and other professional fees, insurance, taxes, estimated costs to dispose of our assets and other miscellaneous expenses. For additional information, see Note 3, Net Assets in Liquidation.

Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2020

Other Liabilities Disclosure [Abstract]

Other Long-Term Liabilities

15. Other Long-Term Liabilities

Other long-term liabilities under the Going Concern Basis consisted of the following:


(in thousands)	December 31,2019

Uncertain tax positions	$	37,574
Deferred tax liability	1,571
Accrued lease liability	10,700




Other	1,020
Total (1) (2)	$	50,865

________________

(1) The amounts above exclude $0.1 million of Other long-term liabilities at Noden classified as held for sale as of December 31, 2019. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

(2) The amounts above include amounts held by LENSAR which was spun-off on October 1, 2020.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Guarantee In connection with the spin-off by the Company of Facet Biotech Corporation (“Facet”), the Company entered into amendments to the leases for the Company’s former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify the Company for all matters related to the leases attributable to the period after the spin-off date. In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie Biotherapeutics, Inc. (“AbbVie”). If AbbVie were to default under its lease obligations, the Company could be held liable by the landlord as a co-tenant and, thus, the Company has in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of December 31, 2020, the total lease payments for the duration of the guarantee, which runs through December 2021 and is non-extendible, are approximately $11.3 million. The Company prepared a discounted, probability weighted cash flow analysis to calculate the estimated fair value of the lease guarantee as of the spin-off. The Company was required to make assumptions regarding the probability of Facet’s default on the lease payment, the likelihood of a sublease being executed and the times at which these events could occur. These assumptions are based on information that the Company received from real estate brokers and the then-current economic conditions, as well as expectations of future economic conditions. The fair value of this lease guarantee was charged to Additional paid-in capital upon the spin-off and any future adjustments to the carrying value of the obligation will also be recorded in Additional paid-in capital. The Company has recorded a liability of $10.7 million as of December 31, 2020 and 2019, related to this guarantee. Wind Down Payments to Stock Option Holders The Wind Down Retention Plan provides for equitable adjustments to outstanding stock options held by participants to ensure such participants realize the same benefits provided to shareholders in the event one or more cash or other distributions become payable to shareholders. Consistent with the existing terms of the Equity Plan, in the event one or more cash or other distributions are paid to shareholders, the exercise price of outstanding stock options will be reduced on a dollar-for-dollar basis to reflect the per share value of such distributions. In the event that the Company declares cash or other distributions that, in the aggregate, exceed the difference between the exercise price of an outstanding stock option and the par value of the underlying shares ($0.01), the holder of such stock option will be entitled to receive from the Company a cash payment in an amount equal to the number of shares subject to such stock option multiplied by the per share amount of the cash or other distribution that exceeds the difference between exercise price of the outstanding option and the par value of the underlying shares (a “true-up payment”). A true-up payment is also paid with respect to a post-dissolution cash or other distributions with respect to a stock-option that was not exercised prior to dissolution in the same fashion as provided above. True-up payments are to be made on the same date that cash or other distributions are paid or made to the Company’s stockholders. As of December 31, 2020, the Company has 11,141,051 stock options outstanding at a weighted average adjusted exercise price of $1.87. As of January 4, 2021, the date we filed our Certificate of Dissolution, the Company was unable to issue stock for any purpose, including to cover the exercise of employee options, and as a result such options became unexercisable. Purchase Obligations After the sale of Noden and the spin-off of LENSAR, the Company no longer has any purchase obligations and the Company was released from all of its guarantees for purchase obligations. Escrow Receivable SWK Royalty Asset Escrow The proceeds from the sale of the three royalty interests to SWK totaled $4.35 million, 90% of which was received at the closing of the transaction. The remaining 10% or $435 thousand, included in “Receivables from asset sales” in the Statement of Net Assets in Liquidation, is currently held in escrow against certain potential contingencies and is to be released on the one-year anniversary of the closing, subject to the satisfaction of any such potential contingencies.

Stockholders' Equity (Notes)	12 Months Ended
Stockholders' Equity (Notes)	Dec. 31, 2020
Equity [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	17. Stockholders’ Equity Dividends On May 5, 2020, our Board, pursuant to the Plan of Liquidation, approved a distribution of all of the Company’s shares of common stock of Evofem via a liquidation distribution to PDL stockholders. The Evofem shares were distributed on May 21, 2020 to PDL shareholders of record as of the close of business on May 15, 2020 (the “Evofem Record Date”). Based on the shares of PDL common stock outstanding as of the close of business on the Evofem Record Date, PDL stockholders were entitled to receive 0.11591985 shares of Evofem common stock for each share of PDL common stock held. On September 10, 2020, the Company’s Board, pursuant to the Plan of Liquidation, approved a distribution of all of the Company’s shares of common stock of LENSAR via a liquidation distribution to PDL stockholders. The LENSAR shares were distributed on October 2, 2020 to PDL shareholders of record as of the close of business on September 22, 2020 (the “LENSAR Record Date”). Based on the shares of PDL common stock outstanding as of the close of business on the LENSAR Record Date, PDL stockholders were entitled to receive 0.075879 shares of LENSAR common stock for each share of PDL common stock held. Stock Repurchase Program On March 1, 2017, the Company announced that its Board authorized the repurchase through March 2018 of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $30.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under the Company’s share repurchase program were retired and restored to authorized but unissued shares of common stock at June 30, 2017. The Company repurchased 13.3 million shares of its common stock under the share repurchase program during the fiscal year ended December 31, 2017 for an aggregate purchase price of $30.0 million, or an average cost of $2.25 per share, including trading commissions. On September 25, 2017, the Company announced that its Board authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $25.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under this share repurchase program were retired and restored to authorized but unissued shares of common stock. The Company repurchased 8.7 million shares of its common stock under the share repurchase program during the fiscal year ended December 31, 2018, for an aggregate purchase price of $25.0 million, or an average cost of $2.86 per share, including trading commissions. On September 24, 2018, the Company announced that its Board authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $100.0 million pursuant to a share repurchase program. Repurchases under this share repurchase program were made from time to time in the open market or in privately negotiated transactions and funded from the Company’s working capital. All shares of common stock repurchased under this repurchase program were retired and restored to authorized but unissued shares of common stock at July 31, 2019. The Company repurchased 31.0 million shares of its common stock under this share repurchase program for an aggregate purchase price of $100.0 million, or an average cost of $3.22 per share, including trading commissions. On December 9, 2019, the Company announced that its Board authorized the repurchase of issued and outstanding shares of the Company's common stock and convertible notes up to an aggregate value of $200 million. On December 16, 2019, the Company announced that its Board approved a $75 million increase to the aforementioned $200 million repurchase program to acquire outstanding PDL common stock and convertible notes. Repurchases under the new repurchase program were made from time to time in the open market or in privately negotiated transactions and funded from the Company’s working capital. All shares of common stock repurchased under the Company’s repurchase program were retired and restored to authorized but unissued shares of common stock. All convertible notes repurchased under the program were retired. During the year ended December 31, 2019, the Company repurchased $44.8 million in aggregate principal amount of 2021 Convertible Notes and $74.6 million in aggregate principal amount of 2024 Convertible Notes for consideration consisting of a cash payment of $97.9 million and the issuance of 13.4 million shares of the Company’s common stock. During the eight months ended August 31, 2020, the Company repurchased $5.4 million in aggregate principal amount of 2021 Convertible Notes and $10.5 million in aggregate principal amount of 2024 Convertible Notes for cash payments totaling $18.8 million. During the eight months ended August 31, 2020, the Company repurchased 12.3 million shares of its common stock under the share repurchase program for an aggregate purchase price of $39.4 million, or an average cost of $3.20 per share, including trading commissions. Upon the approval by the Company’s stockholders 2020 to seek dissolution in August 2020 during the Annual Shareholder Meeting, holders of $11.2 million par value of December 2021 Notes exercised their conversion right for an aggregate amount of $12.0 million. Such notes were repurchased entirely for cash and were retired prior to December 31, 2020. In December 2020, the Company repurchased an additional $2.2 million par value of December 2021 Notes in separate privately negotiated transactions for an aggregate amount of $2.3 million, including interest and repurchased $1.0 million par value of December 2024 Notes in a privately negotiated transaction for an aggregate amount of $1.1 million, including interest. As of December 31, 2020, the Company had repurchased 12.3 million shares of its common stock under the share repurchase program for an aggregate purchase price of $39.4 million, or an average cost of $3.20 per share, including trading commissions.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

. Accumulated Other Comprehensive Income

Under the Going Concern Basis, comprehensive income is comprised of net loss and other comprehensive loss. The Company includes unrealized net gains (losses) on investments held in its available-for-sale securities in other comprehensive loss, and presents the amounts net of tax. The Company’s other comprehensive loss is included in the Company’s Consolidated Statements of Comprehensive Loss.

The balance of “accumulated other comprehensive loss,” net of tax, was as follows:


(in thousands)	Unrealized gains (losses) on available-for- sale securities		Total Accumulated Other Comprehensive Income




Balance at December 31, 2017	$	1,181	$	1,181

Activity for the year ended December 31, 2018	(1,181)		(1,181)
Ending Balance at December 31, 2018	—		—

Activity for the year ended December 31, 2019	—		—
Ending Balance at December 31, 2019	—		—

Activity for the eight months ended August 31, 2020	—		—
Ending Balance at August 31, 2020	$	—	$	—

Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

19. Stock-Based Compensation

The Company previously granted restricted stock awards and stock options pursuant to a stockholder approved stock-based incentive plan.

The following table summarizes the Company’s stock option and restricted stock award compensation expense during the eight months ended August 31, 2020 and years ended December 31, 2019 and 2018:


	Eight Months Ended August 31,		Year Ended December 31,
Stock-based Compensation	2020		2019		2018
(in thousands)
Employees and directors (1)	$	18,802	$	6,834	$	4,337

_______________

(1) Stock option and restricted stock award compensation expense from discontinued operations are excluded from the table above.

The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility was based on the historical volatility of the Company’s common stock over the estimated expected life of the options. The expected term represents the period of time the options were expected to be outstanding. The expected term is based on the “simplified method” as defined by the SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). The Company used the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free rate was based on yields on U.S. Treasury securities with a maturity similar to the estimated expected term of the options. The fair value of restricted stock awards was based on the closing price of the Company’s common stock on the grant date.

The fair value of the Company’s stock options granted in the eight months ended August 31, 2020 and the years ended December 31, 2019 and 2018, were estimated assuming no expected dividends and the following weighted-average assumptions:


	Eight Months Ended August 31,	Year Ended December 31,
	2020	2019			2018

Range of expected term (in years)	1.0	3.5	-	6.1	3.5	-	6.0
Range of risk-free interest rate	0.1%	1.5%	-	3.0%	2.7%	-	3.0%
Expected volatility	55%	40%			40%

Stock-Based Incentive Plans

On February 7, 2020, the Board approved the Plan of Liquidation, which accelerated the vesting of a significant portion of the Company’s outstanding equity awards pursuant to provisions in the Wind Down Retention Plan. The Wind Down Retention Plan further provides for equitable adjustments to outstanding stock options held by participants to ensure such participants realize the same benefits provided to shareholders in the event one or more cash or other distributions become payable to shareholders. Consistent with the existing terms of the Equity Plan, in the event one or more cash or other distributions are paid to shareholders, the exercise price of outstanding stock options will be reduced on a dollar-for-dollar basis to reflect the per share value of such distribution. In the event that the Company declares cash or other distributions that, in the aggregate, exceed the difference between the exercise price of an outstanding stock option and the par value of the underlying shares ($0.01), the holder of such stock option will be entitled to receive from the Company a cash payment in an amount equal to the number of shares subject to such stock option multiplied by the per share amount of the cash or other distribution that exceeds the difference between exercise price of the outstanding option and the par value of the underlying shares (a “true-up payment”). A true-up payment is also paid with respect to a post-dissolution cash or other distributions with respect to a stock-option that was not exercised prior to dissolution in the same fashion as provided above. True-up payments are to be made on the same date that cash or other distributions are paid or made to the Company’s stockholders. In May 2020, in accordance with this provision and in conjunction with the Evofem distribution, the exercise price of the outstanding option awards was decreased by $0.58 per share. In October 2020, in accordance with this provision and in conjunction with the LENSAR distribution, the exercise price of the outstanding option awards was decreased by $0.78 per share. As of December 31, 2020, the Company has 11,141,051 stock options outstanding at a weighted average adjusted exercise price of $1.87. As of January 4, 2021, the date we filed our Certificate of Dissolution, the Company was unable to issue stock for any purpose, including to cover the exercise of employee options, and as a result such options became unexercisable.

2005 Equity Incentive Plan

The Company had one active stock-based incentive plan under which it previously granted stock-based awards to the Company’s employees, directors and non-employees.

Under the Company’s Amended and Restated 2005 Equity Incentive Plan effective June 8, 2018 (the “2005 Equity Incentive Plan”), the Company was authorized to issue a variety of incentive awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance share and performance unit awards, deferred compensation awards and other stock-based or cash-based awards. As of December 31, 2020, awards granted under the 2005 Equity Incentive Plan consisted of stock options and restricted stock awards. There were no other grants of any other award types under the 2005 Equity Incentive Plan. Upon the Company’s filing for dissolution in January 2021, the Company is no longer authorized to issue equity awards under the 2005 Equity Incentive Plan.

In June 2018, the Company’s stockholders approved an amendment and restatement of the 2005 Equity Incentive Plan that increased the number of shares available for grant by 15,000,000 to 26,200,000. The number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock awards, shares of common stock subject to outstanding awards and shares available for grant under this plan as of December 31, 2020, are as follows:

Title of Plan

Total Shares of Common Stock Authorized

Total Shares of Common Stock Issued

Total Shares of Common Stock Available for Grant

2005 Equity Incentive Plan

26,200,000

17,731,795

8,468,205

Stock Options

The following table summarizes the option activity under the 2005 Equity Incentive Plan for the year ended December 31, 2020:


	Options	Weighted-Average Adjusted Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Outstanding at beginning of year	11,652	$	1.76	8.5	$	3,473
Granted	630	$	2.78
Exercised	(1,375)	$	1.84
Forfeited	(728)	$	3.08
Outstanding at end of year	10,180	$	1.87	7.8	$	6,298

Exercisable at end of year	10,180	$	1.87	7.8	$	6,298

Options to purchase common stock generally vested over a 3 or 4-year period and were generally granted for a term of 10 years.

The weighted-average grant-date fair value of options granted during the year ended December 31, 2020 was $0.78 per share. The intrinsic value of options exercised during the year ended December 31, 2020 was $1.2 million and the Company received $0.7 million in cash related to the exercise of the option awards. In conjunction with the dissolution process, all outstanding options were fully vested in the year ended December 31, 2020.

Restricted Stock Awards

Restricted stock has the same rights as other issued and outstanding shares of the Company’s common stock, including, in some cases, the right to accrue dividends, which are held in escrow until the award vests. The compensation expense related to these awards was determined using the fair market value of the Company’s common stock on the date of the grant, and the compensation expense was recognized ratably over the vesting period. Under the Company’s restricted stock plans, restricted stock awards typically vested over one to five years and compensation expense associated with these awards was recognized on a straight-line basis over the vesting period. In addition to service requirements, vesting of restricted stock awards may have been subject to the achievement of specified performance goals set by the Compensation Committee. If the performance goals were not met, no compensation expense was recognized and any previously recognized compensation expense was reversed.

The following table summarizes the restricted stock award activity under the 2005 Equity Incentive Plan for the year ended December 31, 2020:


	2020
	Number of shares	Weighted-average grant-date fair value per share
	(in thousands)
Unvested at beginning of year	933	$	3.56
Awards granted	3,044	$	3.10
Awards vested	(2,872)	$	3.14
Withheld related to net settlement	(1,089)	$	3.39
Forfeited	(16)	$	3.22
Unvested at end of year	—	$	—

The total fair value of restricted stock awards vested during the years ended December 31, 2020, 2019 and 2018 was approximately $9.0 million, $1.4 million and $2.1 million, respectively.

The weighted-average grant date fair value for restricted stock awards granted under the 2005 Equity Incentive Plan for the years end December 31, 2020, 2019 and 2018 was $3.10, $3.62 and $2.61, respectively.

At December 31, 2020, there was no unrecognized compensation expense related to stock options or restricted stock awards granted under the 2005 Equity Incentive Plan.

Inducement Award Agreements

On September 12, 2017, the Company granted 961,000 shares of common stock in the form of a non-statutory inducement stock option grant pursuant to a non-statutory inducement stock option agreement and granted 240,200 shares of our common stock in the form of an inducement restricted stock grant pursuant to an inducement restricted stock agreement. These inducement awards were not granted under the 2005 Equity Incentive Plan.

Inducement Stock Option Activity

As of December 31, 2020, all stock options awarded under the non-statutory inducement stock option agreement were outstanding and exercisable. All compensation costs related to these options have been fully recognized.

Inducement Restricted Stock

In the year ended December 31, 2020, the remaining 80,067 shares of restricted stock awarded under the non-statutory inducement restricted stock agreement were vested. The total fair value of the restricted stock awards vested during the year ended December 31, 2020 was approximately $0.3 million.

Compensation expense associated with unvested restricted stock awards was recognized on a straight-line basis over the vesting period. At December 31, 2020, there was no unrecognized compensation expense related to restricted stock awards granted under the non-statutory inducement restricted stock agreement.

Revenue from Contracts with Customers (Notes)

12 Months Ended

Dec. 31, 2020

Revenue from Contracts with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

20. Revenue from Contracts with Customers

Disaggregation of Revenue

The Company disaggregated its revenue from contracts with customers by segment and geographic location as the Company believed it best depicted how the nature, amount, timing and uncertainty of its revenue and cash flows were affected by economic factors. In the following table, revenue is disaggregated by segment and primary geographical market for the eight months ended August 31, 2020 and the year ended December 31, 2019:


	Eight Months Ended August 31, 2020				Year Ended December 31, 2019
(in thousands)	Medical Devices		Pharmaceutical (1)		Medical Devices		Pharmaceutical (1)

Primary geographical markets:
North America	$	6,656	$	10,093	$	10,155	$	26,034
Europe	2,078		13,008		3,438		22,816
Asia	4,137		6,378		11,536		6,243
Other	200		—		433		—
Total revenue from contracts with customers (2)	$	13,071	$	29,479	$	25,562	$	55,093

_______________

(1) The revenue from the Company’s Pharmaceutical segment for the eight months ended August 31, 2020 and the year ended December 31, 2019 is included in Loss from discontinued operations. For additional information, see Note 4, Discontinued Operations Classified as Assets held for sale.

(2) The table above does not include lease revenue from the Company’s Medical Devices segment of $2.1 million and $5.2 million for the eight months ended August 31, 2020 and the year December 31, 2019, respectively. For additional information, see Note 10, Leases.

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:


(in thousands)	December 31, 2019

Receivables, net	$	10,377
Contract assets	$	3,512
Contract liabilities	$	4,024

Receivables, Net—Receivables, net, included amounts billed and due from customers. The amounts due are stated at their net estimated realizable value and are classified as current or noncurrent based on the timing of when the Company expects to receive payment. The Company maintained an allowance for doubtful accounts to provide for the estimated amount of receivables that would not be collected. The allowance was based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. Receivables, net for our Pharmaceutical segment were classified as a current asset and included in Assets held for sale. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Contract Assets—The Company’s contract assets represented revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing or associated reporting from the customer regarding the computation of the net product sales had not yet occurred. The Company’s contract assets were only attributable to the Pharmaceutical segment, and as such classified contract assets in Assets held for sale on the Company’s Consolidated Balance Sheet.


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract assets at December 31, 2019	$	—	$	3,512	$	3,512
Contract assets recognized	—		(6,730)		(6,730)
Payments received	—		8,562		8,562
Contract assets disposed of	—		(5,344)		(5,344)
Contract assets at December 31, 2020	$	—	$	—	$	—

Contract Liabilities—The Company’s contract liabilities consisted of deferred revenue for products sold to customers for which the performance obligation had not been completed by the Company. The Company classified deferred revenue as current or noncurrent based on the timing of when it expected to recognize revenue. The noncurrent portion of deferred revenue was included in Other long-term liabilities on the Company’s Consolidated Balance Sheet. The Pharmaceutical segment deferred revenue was classified as a current liability and included in Liabilities held for sale on the Company’s Consolidated Balance Sheet.


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract liabilities at December 31, 2019	$	1,075	$	2,949	$	4,024
Additions	658		1,659		2,317
Amounts recognized in revenue	(851)		(888)		(1,739)
Contract liabilities disposed of	(882)		(3,720)		(4,602)
Contract liabilities at December 31, 2020	$	—	$	—	$	—

Segment Information (Notes)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

21. Segment Information

Information regarding the Company’s segments for the eight months ended August 31, 2020 and the year ended December 31, 2019 is as follows:


Revenues by segment	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Medical Devices	$	15,211	$	30,742
Strategic Positions	—		—
Pharmaceutical	—		—
Income Generating Assets	110		(36)
Total revenues	$	15,321	$	30,706

________________

The table above excludes revenues related to discontinued operations. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.


(Loss) income by segment	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Medical Devices	$	(4,454)	$	(5,230)
Strategic Positions	(15,723)		28,758
Pharmaceutical (1)	(15,855)		(19,048)
Income Generating Assets (1)	(37,217)		(74,891)
Total	(73,249)		(70,411)
Change in fair value of warrants not allocated to segments (2)	(4,047)		—
Total net loss	$	(77,296)	$	(70,411)

________________

(1) The (Loss) income by segment presented above includes amounts related to both continuing and discontinued operations. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

(2) The change in fair value of warrants not allocated to segments presented above includes the amounts related to the change in fair value of the Evofem warrants after the distribution of the Evofem common stock to PDL stockholders on May 21, 2020. The Strategic Positions segment ceased to be a reporting segment as of this date.


Long-lived assets by segment	Year Ended
(in thousands)	December 31, 2019

Medical Devices	$	2,435
Strategic Positions	—
Pharmaceutical (1)	2,960
Income Generating Assets	125
Total long-lived assets	$	5,520

________________

(1) The amounts above include Property and Equipment in the Pharmaceutical segment classified as Assets held for sale. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

The operations for the Medical Devices segment were primarily located in the United States and the operations for the Pharmaceutical segment were primarily located in Italy, Ireland and the United States.

Customer Concentration

12 Months Ended

Dec. 31, 2020

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

Concentration of Credit Risk

Product Line Concentration

The percentage of total revenue recognized, which individually accounted for 10% or more of the Company’s total revenues in one or more of the periods presented below, was as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020 (1)		2019 (1)		2018 (1)



Biogen	—	%	—	%	14	%
LENSAR	99	%	100	%	77	%

________________

(1) The amounts above exclude product sales in our Pharmaceutical segment and royalty rights classified as held for sale in the Income Generating Assets segment, each of which is included in the Statements of Operations as Loss from discontinued operations. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Total revenues by geographic area are based on the country of domicile of the counterparty to the agreement are as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018

United States	$	6,656	$	15,151	$	21,434
Europe	2,078		3,438		2,451
Rest of world	4,337		12,117		8,143
Total revenues (1)	$	13,071	$	30,706	$	32,028

________________

(1) The amounts above exclude product sales in our Pharmaceutical segment and royalty rights held for sale in the Income Generating Assets segment, each of which is included in the Statements of Operations as Loss from discontinued operations. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.

One customer accounted for more than 10% of accounts receivable, net as of December 31, 2019.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

23. Income Taxes

For financial reporting purposes, Loss before income taxes from continuing operations includes the following components:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
United States	$	(60,820)	$	(61,446)	$	(39,518)
Foreign	—		—		—
Total	$	(60,820)	$	(61,446)	$	(39,518)

The provision for income taxes from continuing operations for the eight months ended August 31, 2020 and the years ended December 31, 2019 and 2018 consisted of the following:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
Current income tax (benefit) expense
Federal	$	(14,316)	$	3,750	$	(271)
State	1,051		2,046		1,033
Foreign	—		—		—
Total current	(13,265)		5,796		762
Deferred income tax (benefit) expense
Federal	(4,340)		(10,978)		(7,932)
State	(175)		830		(615)
Foreign	—		—		1,032
Total deferred	(4,515)		(10,148)		(7,515)
Total provision	$	(17,780)	$	(4,352)	$	(6,753)

A reconciliation of the income tax benefit from continuing operations computed using the U.S. statutory federal income tax rate compared to the income tax benefit for income from continuing operations included in the Consolidated Statements of Operations is as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
Tax at U.S. statutory rate on loss before income taxes	$	(12,772)	$	(12,904)	$	(8,299)
Change in valuation allowance	(3,762)		3,613		875
State taxes	656		2,446		(397)


Change in uncertain tax positions	—		1,513		809



True-ups	—		249		(27)
CARES Act refund	(5,406)		—		—
Other	3,504		731		286
Total	$	(17,780)	$	(4,352)	$	(6,753)

Deferred tax assets and liabilities are determined based on the differences between financial reporting and income tax bases of assets and liabilities, as well as net operating loss carryforwards and are measured using the enacted tax rates and laws in effect

when the differences are expected to reverse. The significant components of the Company’s net deferred tax assets and liabilities from continuing operations are as follows:


(in thousands)	December 31, 2020		December 31, 2019
	(Liquidation Basis)		(Going Concern Basis)
Deferred tax assets:
Net operating loss carryforwards	$	3,345	$	3,602
Research and other tax credits	1,448		1,448
ASC 740-10 Reserve	6,455		8,419
Stock-based compensation	2,513		1,758
Accruals	84		1,388

Debt modifications	6,030		7,189

Capital loss carryforward	2,947		1,213
Other	51		1,145
Total deferred tax assets	22,873		26,162
Valuation allowance	(21,105)		(7,465)
Total deferred tax assets, net of valuation allowance	1,768		18,697
Deferred tax liabilities:

Debt modifications	—		(308)
Intangible assets	(21,673)		(19,649)
Other	(16)		(311)

Total deferred tax liabilities	(21,689)		(20,268)
Net deferred tax liabilities	$	(19,921)	$	(1,571)

The CARES Act, among other provisions, permits Net Operating Loss (“NOL”) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes at the 35% corporate tax rate then in effect. The Company was a significant taxpayer in the earlier eligible carryback years and expects that the NOL carryback provision of the CARES Act will result in a material cash benefit as a result of the 2020 ordinary tax losses generated and, to a lesser degree, for the 2019 tax year. The expected cash benefit to be received for ordinary losses incurred in 2020 totals $91.8 million. The Company received a refund of $2.1 million associated with 2019 ordinary losses that were carried back to an eligible carryback year.

As of December 31, 2020 and 2019, the Company had federal NOL carryforwards of $103.3 million and $108.6 million, respectively. As of December 31, 2020 and 2019, the Company also had state NOL carryforwards of $63.7 million and $63.9 million, respectively, excluding $215.5 million of California NOLs available to offset assessments, if any, resulting from the current audit by the California Franchise Tax Board (the “CA FTB”). The federal and state NOL carryforwards will begin expiring in the year 2023, if not utilized. As of December 31, 2020 and 2019, the Company had $2.2 million of federal tax credits that will begin expiring in the year 2025, if not utilized. As of December 31, 2020 and 2019, the Company had $19.3 million of state tax credit carryforwards that do not expire.

Utilization of the federal and state NOL and tax credit carryforwards may be subject to a substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986. The annual limitation may result in the expiration of NOLs and credits before utilization. Of the Company’s $103.3 million of federal NOL carryforwards as of December 31, 2020, $26.9 million are subject to an annual limitation of $1.8 million for each of the years ending December 31, 2021 to 2022, and $1.3 million for the year ending December 31, 2023. As of December 31, 2020, the Company estimates that at least $22.0 million of federal NOL carryforwards will expire unutilized and none of the state NOLs will expire unutilized. Tax attributes acquired from LENSAR may be subject to separate return limitations that may limit the corporation’s ability to use the acquired NOLs and credits. Furthermore, under the Tax Cuts and Job Act of 2017 (the ‘2017 Tax Act’), although the treatment of tax losses generated in taxable years ending before December 31, 2017 has not changed, tax losses generated in taxable years beginning after December 31, 2017 may only be utilized to offset 80% of taxable income annually. This change may require the Company to pay additional federal income taxes in future years if additional losses are generated post 2017.

As of December 31, 2020, the Company determined that it was more likely than not that certain deferred tax assets from continuing operations would not be realized in the near future and had a $21.1 million valuation allowance against deferred tax assets. The net change in total valuation allowance for each of the years ending December 31, 2020 and 2019, was an increase of $13.6 million and $5.8 million, respectively. $2.9 million of the valuation allowance at December 31, 2020, is related to capital losses that have limited carryforward utilization. The Company does not have an expectation of future capital gains against which such losses could be utilized and as such determined that it was more likely than not that such deferred tax assets would not be realized. $18.2 million of the valuation allowance at December 31, 2020 is related to federal and state deferred tax assets that the Company determined it was more likely than not would be realized.

The 2017 Tax Act significantly changed the existing U.S. corporate income tax laws by, among other things, lowering the corporate tax rate (from a top rate of 35% to a flat rate of 21%), implementing elements of a territorial tax system, and imposing a one-time deemed repatriation transition tax on cumulative undistributed foreign earnings, for which the Company had not previously paid U.S. taxes.

A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, for 2020, 2019 and 2018 is as follows:


	December 31,
(in thousands)	2020		2019		2018
Balance at the beginning of the year	$	84,213	$	80,783	$	79,179
Increases related to tax positions from prior fiscal years	—		3,927		1,604

Increases related to tax positions taken during current fiscal year	8,412		—		—
Decreases related to tax positions from prior fiscal years	(6,867)		(497)		—
Balance at the end of the year	$	85,758	$	84,213	$	80,783

The future impact of the unrecognized tax benefit of $85.8 million, if recognized, is as follows: $32.6 million would affect the effective tax rate and $53.2 million would result in adjustments to deferred tax assets and valuation allowances. The Company periodically evaluates its exposures associated with our tax filing positions. The Company is currently under audit by the CA FTB. The timing of the audit resolution and the amount to be ultimately paid (if any) is uncertain. The outcome of the audit could result in the payment of tax amounts that differ from the amounts the Company has reserved for uncertain tax positions for the periods under audit resulting in incremental expense or a reversal of the Company’s reserves in a future period. At this time, the Company does not anticipate a material change in the unrecognized tax benefits related to the California FTB audit that would affect the effective tax rate, deferred tax assets or valuation allowances over the next 12 months.

Estimated interest and penalties associated with unrecognized tax benefits increased our income tax expense in the Consolidated Statements of Operations by $1.0 million during the eight months ended August 31, 2020, $1.6 million during the year ended December 31, 2019 and $1.0 million during the year ended December 31, 2018. Interest and penalties associated with unrecognized tax benefits accrued on the statement of net assets and balance sheet were $11.2 million, $9.7 million, and $8.0 million as of December 31, 2020, 2019 and 2018, respectively.

The Company’s U.S. federal income tax returns are subject to examination for the tax years 2017 forward, In general, the Company’s state and local income tax returns are subject to examination by tax authorities for tax years 2000 forward. The Company is currently under income tax examination by the CA FTB for the tax years 2009 through 2018.

Net Income per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Net Income per Share

24. Net Loss per Share


Net Loss per Basic and Diluted Share	Eight Months Ended August 31,		Year Ended December 31,
(in thousands, except per share amounts)	2020		2019		2018
Numerator


Net loss from continuing operations	$	(43,040)	$	(57,094)	$	(32,765)
Net loss from discontinued operations	$	(34,915)	$	(13,597)	$	(36,094)
Loss attributable to the PDL’s stockholders used to compute net loss per basic and diluted share	$	(77,296)	$	(70,411)	$	(68,859)

Denominator
Total weighted-average shares used to compute net loss attributable to PDL's stockholders, per basic share	118,001		118,631		145,669








Shares used to compute net loss attributable to PDL’s stockholders, per diluted share	118,001		118,631		145,669

Net loss per share - basic
Continuing operations	$	(0.36)	$	(0.48)	$	(0.22)
Discontinued operations	$	(0.30)	$	(0.11)	$	(0.25)
Net loss attributable to PDL’s stockholders per basic share	$	(0.66)	$	(0.59)	$	(0.47)

Net loss per share - diluted
Continuing operations	$	(0.36)	$	(0.48)	$	(0.22)
Discontinued operations	$	(0.30)	$	(0.11)	$	(0.25)
Net loss attributable to PDL’s stockholders per diluted share	$	(0.66)	$	(0.59)	$	(0.47)

The Company computes net loss per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding common equivalent shares used in the computation of net loss per diluted share include shares that may be issued pursuant to outstanding stock options and restricted stock awards in each case, on a weighted-average basis for the period they were outstanding, including, if applicable, the underlying shares using the treasury stock method.

The February 2018 Notes that were repaid on February 1, 2018, the December 2021 Notes and the December 2024 Notes allow, or previously allowed, for the settlement entirely or partially in cash, and are accounted for under the treasury stock method. Under the treasury stock method, the shares issuable upon conversion of the notes are not included in the calculation of diluted earnings per share except to the extent that the conversion value of the notes exceeds their principal amount. The effect of which, for diluted earnings per share purposes, is that only the number of shares of common stock that would be necessary to settle such excess, if the Company elected to settle such excess in shares, are included in the computation.

December 2021 Notes and December 2024 Notes Capped Call Potential Dilution

In November 2016, the Company issued $150.0 million in aggregate principal of the December 2021 Notes. In September 2019, the Company entered into the September 2019 Exchange Transaction through which it exchanged a portion of the December 2021 Notes for the December 2024 Notes. Both the December 2021 Notes and the December 2024 Notes provide in certain situations for the conversion of the outstanding principal amount into shares of the Company’s common stock at a predefined conversion rate. In conjunction with the issuance of the December 2021 Notes and the issuance of the December 2024 Notes pursuant to the September 2019 Exchange Transaction, the Company entered into capped call transactions, with a hedge counterparty. The capped call transactions are expected generally to reduce the potential dilution, and/or offset, to an extent, the cash payments the Company may choose to make in excess of the principal amount, upon conversion of the December 2021 Notes or the December 2024 Notes. The Company has excluded the capped call transaction from the net loss per diluted share computation as such securities would have an anti-dilutive effect and those securities should be considered separately rather than in the aggregate in determining whether their effect on net loss per diluted share would be dilutive or anti-dilutive. For additional information regarding the conversion rates and the capped call transactions related to the Company’s December 2021 Notes and December 2024 Notes; see Note 14, Convertible Senior Notes.

Anti-Dilutive Effect of Restricted Stock Awards and Stock Options

For the eight months ended August 31, 2020, and years ended December 31, 2019 and 2018, the Company excluded approximately 0.2 million, 1.0 million, and 1.1 million shares, respectively, underlying restricted stock awards, calculated on a weighted-average basis, from the Company’s net loss per diluted share calculations because their effect was anti-dilutive.

For the eight months ended August 31, 2020, and years ended December 31, 2019 and 2018, the Company excluded approximately 11.9 million, 11.2 million and 3.9 million shares underlying outstanding stock options, respectively, calculated on a weighted-average basis, from the Company’s net loss per diluted share calculations because their effect was anti-dilutive.

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2020
Legal Proceedings [Abstract]
Legal Matters and Contingencies [Text Block]	25. Legal Proceedings Wellstat Litigation On September 4, 2015, the Company filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On July 29, 2016, the court issued its Memorandum of Decision granting the Company’s motion for summary judgment and denying the Wellstat Diagnostics Guarantors’ cross-motion for summary judgment seeking a determination that they were no longer liable under the guarantees. The Supreme Court of New York held that the Wellstat Diagnostics Guarantors are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. It did not set a specific dollar amount due, but ordered that a judicial hearing officer or special referee be designated to determine the amount of the Obligations owing, and awarded the Company its attorneys’ fees and costs in an amount to be determined. On July 29, 2016, the Wellstat Diagnostics Guarantors filed a notice of appeal from the Memorandum of Decision to the Appellate Division of the Supreme Court of New York. On February 14, 2017, the Appellate Division reversed the summary judgment decision of the Supreme Court in the Company’s favor, but affirmed the denial of the Wellstat Diagnostics Guarantors’ cross-motion for summary judgment. The Appellate Division determined that the action was inappropriate for summary judgment pursuant to New York Civil Practice Law & Rules section 3213 on procedural grounds, but specifically made no determination regarding whether the Company was entitled to a judgment on the merits. Pursuant to this decision, the action was remanded to the Supreme Court for further proceedings on the merits. The proceeding has been conducted as a plenary proceeding, with both parties having the opportunity to take discovery and file dispositive motions in accordance with New York civil procedure. On September 11, 2019, the Supreme Court of New York granted the Company’s summary judgment motion, the court holding that the guarantees executed by the Wellstat Diagnostics Guarantors are valid and enforceable, and that the Wellstat Diagnostics Guarantors are liable for the amount owed under the loan agreement. The court ordered a damages hearing before a special referee to calculate the amount owed under the loan agreement between Wellstat Diagnostics and the Company. On September 12, 2019, the Wellstat Diagnostics Guarantors filed a notice of appeal of the Supreme Court of New York’s decision on summary judgment. On September 17, 2019, the Wellstat Diagnostics Guarantors requested a stay of the enforcement of the New York Supreme Court’s decision pending their appeal of the decision, which was denied on November 21, 2019. A damages hearing was scheduled to begin before a judicial hearing officer on December 17, 2019. At the request of the judicial hearing officer, the parties agreed to mediate their dispute prior to the commencement of the damages hearing. As a result, no decision was made by the hearing officer with respect to the amount of damages owed to the Company. On August 11, 2020, PDL entered into a Settlement and Mutual Release Agreement with all parties including Samuel J. Wohlstadter, Nadine H. Wohlstadter, Hyperion Catalysis International, Wellstat Vaccines, LLC, Wellstat ImmunoTherapeutics, LLC, Wellstat BioCatalysis, LLC, Wellstat AVT Investment, LLC, Wellstat Biologics Corporation, Wellstat Management Company, LLC, Wellstat Ophthalmics Corporation, Wellstat Therapeutics Corporation, Wellstat Therapeutics EU Limited, Duck Farm, Inc., Hebron Valley Farms, Inc., HVF, Inc., Hyperion Catalysis EU Limited, NHW, LLC, and SJW Properties, Inc., together with their respective successors and assigns, (collectively the “Wellstat Parties”), and Defined Diagnostics, LLC (f/k/a Wellstat Diagnostics, LLC) (“Diagnostics”), resolving all litigation between the Company and the Wellstat Parties (the “Settlement Agreement”). Under the terms of the Settlement Agreement, the parties agreed that the Wellstat Parties would pay an amount of $7.5 million on the signing of the Settlement Agreement and either (1) $5.0 million by February 10, 2021 and $55.0 million by July 26, 2021; or (2) $67.5 million by July 26, 2021. Further under the terms of the Settlement Agreement, upon payment of either $5.0 million prior to April 21, 2021 or completion of the payment of $67.5 million by July 26, 2021, the Company will transfer to Diagnostics on an “as is” and “where is” basis certain assets currently owned by the Company which were acquired through the Company’s credit bid in 2017 for the assets of Diagnostics. If the Wellstat Parties or Diagnostics fail to make payment in full by July 26, 2021 as required under the terms of the Settlement Agreement, the Company is authorized to record judgment against the Wellstat Parties for an amount of $92.5 million or such lesser amount as may be owed under the Settlement Agreement as of that date. The foregoing description is qualified in its entirety by reference to the full text of the Settlement Agreement, a copy of which is expected to be filed with the Securities and Exchange Commission. On December 11, 2020, the Company sold its rights to the settlement agreement to a third-party. For additional information on the sale, see Note 9, Notes and Other Long-Term Receivables. Glumetza Class Action Antitrust Litigation On September 18, 2019, the City of Providence filed a civil antitrust suit on behalf of a putative class of payors in the Northern District of California against Bausch Health Companies, Inc., Salix Pharmaceuticals, Inc., Santarus, Inc., Assertio Therapeutics, Inc., Lupin Pharmaceuticals, Inc. and the Company, inter alia, alleging that a patent settlement agreement between Assertio and Lupin unlawfully restrained competition in an alleged market for Glumetza and its AB-rated generic equivalents sold in the United States. The plaintiffs claim that the settlement agreement violated the federal Sherman Act and various state antitrust laws. The Company was a named defendant by certain End Payor Plaintiffs (EPPs) due to its purchase from Assertio in 2013 of a royalty asset based on sales of Glumetza. On January 21, 2020, the EPPs voluntarily dismissed their claims against the Company, without prejudice. The Company agreed to toll the running of statute of limitations for a limited period of time and to respond to certain discovery requests, subject to reasonable objections, which time period has elapsed. Noden Pharma DAC v Anchen Pharmaceuticals, Inc. et al On June 12, 2017, Noden Pharma DAC filed a complaint against Anchen and Par Pharmaceutical (“Par”) for infringement of U.S. Patent No. 8,617,595 based on their submission of an ANDA seeking authorization from the FDA to market a generic version of Tekturna® aliskiren hemifumarate tablets, 150 mg and 300 mg, in the United States. Noden Pharma DAC’s suit triggered a 30-month stay of FDA approval of that application under the Hatch Waxman Act. Par filed a counterclaim seeking a declaratory judgment that their proposed generic version of Tekturna HCT® aliskiren hemifumarate hydrochlorothiazide tablets (150 mg eq. base/12.5 mg HCT, 150 mg eq. base/25 mg HCT, 300 mg eq. base/12.5 mg HCT, and 300 mg eq. base/25 mg HCT), described in a separate ANDA submitted by Par to FDA, alleging noninfringement of U.S. Patent No. 8,618,172 (“the ‘172 Patent”), also owned by Noden Pharma DAC. This case was litigated in the United States District Court for the District of Delaware. In March of 2018, the Parties filed a joint stipulation of dismissal of the defendants’ counterclaim seeking a declaratory judgment of non-infringement of the ‘172 Patent. In the stipulation, Anchen and Par agreed that they will not seek, or otherwise join or assist in, any post-grant review, including inter partes review, of the ‘172 patent or U.S. Patent No. 9,023,893. The defendants further stipulated that they will not seek marketing approval of Par’s ANDA or submit any other ANDA seeking approval to market aliskiren hemifumarate hydrochlorothiazide prior to the expiration of the ‘172 Patent in July of 2028. Both the ‘172 Patent and the ‘893 Patent are listed in the Orange Book for Tekturna HCT. On June 8, 2018, Noden and Anchen entered into the Settlement Agreement. Under the Settlement Agreement, the parties agreed to file a stipulation of dismissal with the court to facilitate dismissal of the litigation in its entirety, with prejudice. In the Settlement Agreement, Noden granted Anchen a non-exclusive, royalty free, fully paid up and non-transferable license to manufacture and commercialize in the United States a generic version of aliskiren which is described in Anchen’s ANDA, and Anchen agreed not to commercialize its generic version of aliskiren prior to March 1, 2019. The license grant excludes certain formulations covered by the ‘595 Patent which closely relate to the commercial formulation of Tekturna marketed by Noden. The Settlement Agreement includes a release by each party for liabilities associated with the litigation and an acknowledgment from Anchen that the ‘595 Patent claims are valid and enforceable. Other Legal Proceedings From time to time, the Company is involved in lawsuits, arbitrations, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. The Company makes provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of the Company’s operations of that period and on its cash flows and liquidity.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events Dissolution In January 2021, the Company filed a certificate of dissolution in Delaware and will proceed to wind-down and dissolve the Company in accordance with Delaware General Corporate Law. Also in January 2021, the Company’s common stock was formally delisted by Nasdaq. Convertible Senior Notes In connection with the Fundamental Change Repurchase Right resulting from the suspension of trading of the Company’s common stock on Nasdaq prior to the opening of business on December 31, 2020, holders of 142 December 2021 Notes tendered their notes for repurchase, which occurred on February 17, 2021. In connection with the Fundamental Make-Whole Change resulting from the suspension of trading of the Company’s common stock on Nasdaq prior to the opening of business on December 31, 2020, holders of 50 December 2021 Notes exercised their conversion rights. Such notes will be retired for cash. CareView The first principal payment and the scheduled interest payment due December 31, 2018 that were previously deferred until January 31, 2021 were subsequently deferred until May 31, 2021 under additional amendments.

Convertible Notes

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Convertible and Non-Recourse Notes

14. Convertible Senior Notes

February 2018 Notes

On February 12, 2014, the Company issued $300.0 million in aggregate principal amount, at par, of the 4.0% Convertible Senior Notes due February 1, 2018 (the “February 2018 Notes”) Notes in an underwritten public offering, for net proceeds of $290.2 million. The February 2018 Notes were due February 1, 2018, and the Company paid interest at 4.0% on the February 2018 Notes semiannually in arrears on February 1 and August 1 of each year, beginning August 1, 2014. A portion of the proceeds from the February 2018 Notes, net of amounts used for purchased call option transactions and provided by the warrant transactions described below, were used to redeem $131.7 million of the Company’s 2.975% Convertible Senior Notes due February 17, 2016.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, the Company was required to separately account for the liability component of the instrument in a manner that reflected the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, the Company separated the principal balance of the February 2018 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.0%, which represented the estimated market interest rate for a similar nonconvertible instrument available to the Company on the date of issuance, the Company recorded a total debt discount of $29.7 million, allocated $19.3 million to additional paid-in capital and allocated $10.4 million to deferred tax liability. The discount was being amortized to interest expense over the term of the February 2018 Notes and increased interest expense during the term of the February 2018 Notes from the 4.0% cash coupon interest rate to an effective interest rate of 6.9%.

In connection with the issuance of the February 2018 Notes, the Company entered into purchased call option transactions with two hedge counterparties. The Company paid an aggregate amount of $31.0 million for the purchased call options with terms substantially similar to the embedded conversion options in the February 2018 Notes. The purchased call options covered, subject to anti-dilution and certain other customary adjustments substantially similar to those in the February 2018 Notes, approximately 13.8 million shares of the Company’s common stock. Outstanding purchased call options expired on February 1, 2018.

In addition, the Company sold to the hedge counterparties warrants exercisable, on a cashless basis, for the sale of rights to receive shares of common stock underlying the February 2018 Notes at a strike price of $10.3610 per share, which represented a

premium of approximately 30% over the last reported sale price of the Company’s common stock of $7.97 on February 6, 2014. The Company received an aggregate amount of $11.4 million for the sale from the two counterparties.

The purchased call options and warrants were considered indexed to the Company stock, required net-share settlement and met all criteria for equity classification at inception and in subsequent periods. The purchased call options cost of $31.0 million less deferred taxes of $10.8 million, and the $11.4 million received for the warrants, were recorded as adjustments to additional paid-in capital.

On November 20, 2015, the Company’s agent initiated the repurchase of $53.6 million in aggregate principal amount of its February 2018 Notes for $43.7 million in cash in four open market transactions. The closing of these transactions occurred on November 30, 2015. It was determined that the repurchase of the principal amount should be accounted for as a partial extinguishment of the February 2018 Notes. As a result, a gain on extinguishment of $6.5 million was recorded at closing of the transaction. The $6.5 million gain on extinguishment included the de-recognition of a proportional share of the original issuance discount of $3.1 million, outstanding deferred issuance costs of $0.9 million and agent fees of $0.1 million. In connection with this repurchase of the February 2018 Notes, the Company unwound a corresponding portion of the purchased call options related to the notes. As a result of this unwinding, the Company received $0.3 million in cash. The payments received have been recorded as an increase to additional paid-in-capital. In addition, the Company unwound a corresponding portion of the warrants issued in connection with the notes for $0.2 million in cash, payable by the Company. The payments have been recorded as a decrease to additional paid-in-capital.

On November 22, 2016, the Company repurchased $120.0 million in aggregate principal amount of its February 2018 Notes for approximately $121.5 million in cash (including $1.5 million of accrued interest) in open market transactions. It was determined that the repurchase of the principal amount be accounted for as an extinguishment. The extinguishment included the de-recognition of a proportional share of the original issuance discount of $4.3 million and outstanding deferred issuance costs of $1.3 million. In connection with the repurchase of the February 2018 Notes, the Company unwound a corresponding portion of the purchased call options. The transaction did not result in any cash payments between the parties. In addition, the Company and the counterparties agreed to unwind a corresponding portion of the warrants, which also did not result in any cash payments between the parties.

On February 1, 2018, upon maturity of the February 2018 Notes, the Company repaid a total cash amount of $129.0 million to the custodian, The Bank of New York Mellon Trust Company, N.A., which was comprised of $126.4 million in principal amount and $2.6 million in accrued interest, to retire the February 2018 Notes.

Interest expense for the February 2018 Notes on the Company’s Consolidated Statements of Operations was as follows:


(in thousands)	Year Ended December 31, 2018

Contractual coupon interest	$	422
Amortization of debt issuance costs	88
Amortization of debt discount	293
Total	$	803

December 2021 Notes

On November 22, 2016, the Company issued $150.0 million in aggregate principal amount, at par, of 2.75% Convertible Senior Notes due December 1, 2021 (the “December 2021 Notes”) in an underwritten public offering, for net proceeds of $145.7 million. The December 2021 Notes are due December 1, 2021, and the Company pays interest at 2.75% on the December 2021 Notes semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2017. A portion of the proceeds from the December 2021 Notes, net of amounts used for the capped call transaction described below, was used to extinguish $120.0 million of the February 2018 Notes.

In September 2019, the Company entered into privately negotiated exchange agreements with certain holders of approximately $86.1 million aggregate principal amount of outstanding December 2021 Notes. The Company exchanged $86.1 million aggregate principal of December 2021 Notes for an identical principal amount of 2.75% Convertible Senior Notes due December 1, 2024 (the “December 2024 Notes”), plus a cash payment of $70.00 for each $1,000 principal amount tendered (“September

2019 Exchange Transaction”). See “December 2024 Notes” below. The terms of the remaining December 2021 Notes remained unchanged.

The September 2019 Exchange Transaction qualified as a debt extinguishment and the Company recognized a loss on exchange of the convertible notes of $3.9 million, which is included in Non-operating income (expense), net in the Consolidated Statement of Operations for the year ended December 31, 2019.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2021 Notes (the “December 2021 Notes Indenture”), holders have the option to require the Company to repurchase their December 2021 Notes at a purchase price equal to 100% of the principal, plus accrued interest.

Prior to the delisting of its common stock, the December 2021 Notes were convertible into PDL common stock upon the occurrence of specified corporate events as described in the December 2021 Notes Indenture or under either of the following circumstances at any time prior to the close of business on the business day immediately preceding June 1, 2021 (or at any time beginning on June 1, 2021 until the close of business on the second scheduled trading day immediately preceding the stated maturity):

•During any fiscal quarter (and only during such fiscal quarter) commencing after the fiscal quarter ended June 30, 2017, if the last reported sale price of Company common stock for at least 20 trading days (whether or not consecutive), in the period of 30 consecutive trading days, ending on, and including, the last trading day of the immediately preceding fiscal quarter, exceeds 130% of the conversion price for the notes on each applicable trading day; or

•During the five business-day period immediately after any five consecutive trading-day period, which the Company refers to as the measurement period, in which the trading price per $1,000 principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of Company common stock and the conversion rate for the notes for each such trading day.

The December 2021 Notes remain convertible upon the occurrence of specified corporate events.

The initial conversion rate for the December 2021 Notes was 262.2951 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes, which was equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the December 2021 Notes Indenture, the following of which occurred in 2020:

•Upon the distribution by the Company of its stock in Evofem to the PDL stockholders on May 21, 2020, the conversion rate for the December 2021 Notes increased from 262.2951 to 316.5801 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes equating to a conversion price of $3.16 per share of common stock.

•Upon the stockholders’ approval of the dissolution of the Company on August 19, 2020, a Fundamental Make-Whole Change, as defined in the December 2021 Notes Indenture, was triggered and the conversion rate for the December 2021 Notes was temporarily increased by 26.5297 to 343.1098 shares of the Company’s common stock for those bondholders who elected to convert their bonds during the conversion period.

•Upon the spin-off of the Company’s majority-owned subsidiary, LENSAR, on October 1, 2020, the conversion rate increased for the December 2021 Notes from 316.5801 to 410.6268 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes equating to a conversion price of $2.44 per share of common stock.

•As the adjustment to the conversion rate resulting from the spin-ff of LENSAR occurred during the fundamental make-whole period, the temporary increase to the conversion rate of 26.5297 shares of the Company’s common stock associated with the stockholders’ approval of the dissolution of the Company was further increased by 7.8812 shares of the Company’s common stock for the applicable portion of the observation period for those bondholders who elected to convert their bonds during the conversion period.

•Upon the suspension of trading of the Company’s common stock on the Nasdaq prior to the opening of business on December 31, 2020, a Fundamental Make-Whole Change occurred on December 31, 2020 resulting in a temporary increase to the conversion rate of 34.7383 shares of the Company’s common stock during the conversion period.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, upon the issuance of the December 2021 Notes in November 2016 the Company was required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, the Company separated the principal balance of the December 2021 Notes between the fair value of the debt component with the remainder of the consideration being allocated to the equity component. Using an assumed borrowing rate of 9.5%, which represented the estimated market interest rate for a similar nonconvertible instrument

available to the Company on the date of issuance, the Company recorded a debt discount of $4.3 million, allocated $23.8 million to Additional paid-in capital for the conversion feature and allocated $12.8 million to deferred tax liability.

The debt discount, including the conversion feature and issuance costs allocated to debt, which remained after amortization and the effect of the September 2019 Exchange Transaction, was being amortized to interest expense over the term of the December 2021 Notes until the adoption of the Liquidation Basis and increased, until such time, interest expense for the December 2021 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 9.7%.

On December 17, 2019, the Company repurchased $44.8 million in aggregate principal amount of its December 2021 Notes for $39.9 million in cash and 3.5 million shares of its common stock in privately negotiated transactions (the “December 2019 Exchange Transaction”). It was determined that the repurchase of the principal amount should be accounted for as a partial extinguishment of the December 2021 Notes. As a result, a loss on extinguishment of $2.5 million was recorded at closing of the transaction. The loss on extinguishment included the de-recognition of a proportional share of the original issuance discount of $0.3 million and outstanding deferred issuance costs of less than $0.1 million.

The approval of the Plan of Dissolution by the Company’s stockholders in August 2020, provided for a Fundamental Change Repurchase Right, as defined in the December 2021 Notes Indenture, to each holder of the December 2021 Notes which would require the Company, at the holder’s option, to repurchase for cash on September 29, 2020 such holder’s notes, or any portion of the principal amount thereof, equal to $1,000 or an integral multiple of $1,000. No holders tendered their notes for repurchase under this Fundamental Change Repurchase Right.

The approval of the Plan of Dissolution by the Company’s stockholders also initiated a Fundamental Make-Whole Change, as noted above, allowing the holders of the December 2021 Notes to exercise their conversion rights during the conversion period for a cash amount equal to the conversion rate as defined in the December 2021 Notes Indenture (the “September 2020 Conversion”). Holders of $11.2 million par value of December 2021 Notes exercised their conversion right for an aggregate cash amount of $12.0 million. Such notes were repurchased and retired prior to December 31, 2020.

As a result of the suspension of trading of the Company’s common stock on the Nasdaq prior to the opening of business on December 31, 2020, a Fundamental Change occurred on December 31, 2020, the first day the Company’s common stock was no longer quoted and traded on a national securities exchange, and accordingly provided for a Fundamental Change Repurchase Right, which requires the Company, at the holder’s option, to repurchase for cash on February 17, 2021 such holder’s notes, or any portion of the principal amount thereof, equal to $1,000 or an integral multiple of $1,000. See Note 26, Subsequent Events, for further information.

The suspension of trading of the Company’s common stock also initiated a Fundamental Make-Whole Change allowing the holders of the notes to exercise their conversion rights until the close of business on February 16, 2021 for a cash amount equal to the conversion rate as defined in the December 2021 Notes Indenture (the “2021 Conversion”). See Note 26, Subsequent Events, for further information.

In December 2020, the Company repurchased an additional $2.2 million par value of December 2021 Notes in separate privately negotiated transactions for an aggregate amount of $2.3 million, including interest (the “December 2020 Repurchases”). As of December 31, 2020, $1.9 million par value of these notes remained outstanding pending final settlement, the offset of which is recorded as “Other Assets” on the Company’s Consolidated Statement of Net Assets as of December 31, 2020.

The carrying value and unamortized discount of the December 2021 Notes were as follows:


(in thousands)	December 31, 2020		December 31, 2019
	(Liquidation Basis)		(Going Concern Basis)

Principal amount of the December 2021 Notes	$	2,330	$	19,170
Unamortized discount of liability component under Going Concern Basis	—		(2,220)
Expected settlement premium under Liquidation Basis	132		—
Net carrying value of the December 2021 Notes	$	2,462	$	16,950

Interest expense for the December 2021 Notes included in the Company’s Consolidated Statements of Operations was as follows:


	Eight Months Ended		Year Ended December 31,
(in thousands)	August 31, 2020		2019		2018

Contractual coupon interest	$	281	$	3,390	$	4,125
Amortization of debt issuance costs	5		64		76
Amortization of debt discount	39		459		542
Amortization of conversion feature	544		5,973		6,611
Total	$	869	$	9,886	$	11,354

As of December 31, 2020, the December 2021 Notes are convertible.

Capped Call Transaction

In connection with the offering of the December 2021 Notes, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $14.4 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2021 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2021 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction. This initially corresponds to the approximate $3.81 per share conversion price of the December 2021 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2021 Notes. The cap price of the capped call transaction was initially $4.88 per share and is subject to certain adjustments under the terms of the capped call transaction. Both the per share conversion price and cap price were adjusted for the above-noted changes to the conversion rate of the December 2021 Notes that occurred during 2020. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible senior notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

The Company evaluated the capped call transaction under authoritative accounting guidance and determined that it should be accounted for as a separate transaction and classified as a net reduction to additional paid-in capital within stockholders’ equity with no recurring fair value measurement recorded.

In connection with the September 2019 Exchange Transaction, the Company unwound a portion of the capped call entered into when the December 2021 Notes were issued, as they were no longer scheduled to mature in 2021. This generated proceeds to the Company of $0.9 million. The $0.9 million proceeds from the unwind of the capped call, which reflected the value of the options outstanding at the time of the September 2019 Exchange Transaction and the average share price of the Company’s common stock were included as an increase to Additional paid-in capital within stockholders’ equity.

In connection with the December 2019 Exchange Transaction, the Company unwound a corresponding portion of the capped call related to the notes and repurchased 1.6 million shares of its common stock from the counterparty. The Company paid the capped call counterparty $3.1 million, representing $5.6 million for the common stock repurchased from the counterparty, net of $2.5 million owed from the counterparty to the Company for unwinding the capped call. The common stock repurchased was reflected as a decrease to Retained earnings within stockholders’ equity. The proceeds from the capped call were included as an increase to Additional paid-in capital within stockholders’ equity.

In connection with the September 2020 Conversion and the December 2020 Repurchases, the Company unwound a corresponding portion of the capped call which generated aggregate proceeds to the Company of $1.3 million.

As of December 31, 2020, under the Liquidation Basis, the estimated cash expenditures of the December 2021 Notes was $2.5 million, this includes principal, interest and other payments expected to repurchase or convert the notes to cash. For additional information, see Note 3, Net Assets in Liquidation.

December 2024 Notes

On September 17, 2019, in connection with the September 2019 Exchange Transaction, the Company exchanged $86.1 million aggregate principal of December 2021 Notes for an identical aggregate original principal amount of December 2024 Notes, plus a cash payment of $70.00 for each $1,000 principal amount exchanged, totaling approximately $6.0 million. The December 2024 Notes were scheduled to mature on December 1, 2024. The Company paid interest at 2.75% on the December 2024 Notes semiannually in arrears on June 1 and December 1 of each year, beginning December 1, 2019. The original principal of the December 2024 Notes was expected to accrete at a rate of 2.375% per year (“Accretion Interest”) commencing September 17, 2019 through the maturity of the December 2024 Notes. The accreted principal amount of the December 2024 Notes was payable in cash upon maturity and is included in “Other long-term liabilities” on the Company’s Consolidated Balance Sheet as of December 31, 2019.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2024 Notes (the “December 2024 Notes Indenture”), holders have the option to require the Company to repurchase their December 2024 Notes at a purchase price equal to 100% of the accreted principal amount of such December 2024 Notes, plus accrued interest on the original principal amount thereon.

Prior to the delisting of its common stock, the December 2024 Notes were convertible into PDL common stock upon the occurrence of specified corporate events as described in the December 2024 Notes Indenture or under either of the following circumstances at any time prior to the close of business on the business day immediately preceding June 1, 2024 (or at any time beginning on June 1, 2024 until the close of business on the second scheduled trading day immediately preceding the stated maturity):

•During any fiscal quarter (and only during such fiscal quarter) commencing after the fiscal quarter ended December 31, 2019, if the last reported sale price of Company common stock for at least 20 trading days (whether or not consecutive), in the period of 30 consecutive trading days, ending on, and including, the last trading day of the immediately preceding fiscal quarter, exceeds 130% of the conversion price for the notes on each applicable trading day; or

•During the five business-day period immediately after any five consecutive trading-day period, which the Company refers to as the measurement period, in which the trading price per $1,000 original principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of Company common stock and the conversion rate for the notes for each such trading day.

In accordance with the terms of the December 2024 Notes Indenture, the Company had the right, but not the obligation, to redeem all or any portion of the December 2024 Notes that is equal to $1,000 original principal amount or an integral multiple of $1,000 prior to their scheduled maturity on a redemption date beginning on or after December 1, 2021 and on or before the 60th scheduled trading day before December 1, 2024, for a cash purchase price equal to the redemption price, but only if the last reported sale price of Company common stock exceeds 128% of the conversion price for the December 2024 Notes on (i) each of at least 20 trading Days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately before the redemption notice date for such redemption; and (ii) the trading day immediately before such redemption notice date. The redemption price for the December 2024 Notes called for redemption is equal to the then accreted principal amount of such December 2024 Notes plus accrued but unpaid interest on the original principal amount thereon. The calling of any December 2024 Notes for redemption would constitute a make-whole fundamental change with respect to such notes, entitling the holders who convert such December 2024 Notes called for redemption prior to the applicable redemption date to receive an increase in the applicable conversion rate, as described in the December 2024 Notes Indenture.

The initial conversion rate for the December 2024 Notes was 262.2951 shares of the Company’s common stock per $1,000 original principal amount of December 2024 Notes, which was equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the December 2024 Notes Indenture, the following of which occurred in 2020:

•Upon the distribution by the Company of its stock in Evofem to the PDL stockholders on May 21, 2020, the conversion rate for the December 2024 Notes increased from 262.2951 to 316.5801 shares of the Company’s common stock per $1,000 principal amount of December 2024 Notes equating to a conversion price of $3.16 per share of common stock.

•Upon the stockholders’ approval of the dissolution of the Company on August 19, 2020, a Fundamental Make-Whole Change, as defined in the December 2024 Notes Indenture, was triggered and the conversion rate for the December 2024 Notes was temporarily increased by 62.2203 to 378.8004 shares of the Company’s common stock during the conversion period.

•Upon the spin-off of the Company’s majority-owned subsidiary, LENSAR, On October 1, 2020 the conversion rate increased for the December 2024 Notes from 316.5801 to 410.6268 shares of the Company’s common stock per $1,000 principal amount of December 2024 Notes equating to a conversion price of $2.44 per share of common stock.

In accordance with the accounting guidance for an extinguishment of convertible debt instruments with a cash conversion feature, the Company was required to allocate the fair value of the consideration transferred between the liability component and the equity component. To calculate the fair value of the debt immediately prior to derecognition, the carrying value was recalculated in a manner that reflected the estimated market interest rate for a similar nonconvertible instrument at the date of issuance. Using an assumed borrowing rate of 7.05% the Company calculated the fair value of the debt representing the amount allocated to the liability component of the December 2024 Notes with the remainder of the consideration allocated to the equity conversion feature, to reflect the reacquisition of the embedded conversion option. The conversion feature together with the fees allocated to the debt are accounted for as a debt discount. As a result of the September 2019 Exchange Transaction, the Company recorded a total debt discount of $9.4 million, which included the cash conversion feature of $8.1 million and the debt issuance fees of $1.3 million, charged $5.5 million to Additional paid-in capital ($13.5 million charge to Additional paid-in capital representing the reduction to the 2021 equity component, partially offset by the $8.1 million allocated to equity for the 2024 notes) and recorded $1.2 million to deferred tax liability. The net amount charged to Additional paid-in capital represents the difference between the consideration paid for the September 2019 Exchange Transaction and the fair value of the convertible debt prior to the extinguishment.

The Accretion Interest and debt discount, including the conversion feature and issuance costs allocated to debt, were being amortized to interest expense over the term of the December 2024 Notes until the adoption of the Liquidation Basis and increased, until such time, interest expense for the December 2024 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 7.5%.

On December 17, 2019, in connection with the December 2019 Exchange Transaction, the Company repurchased $74.6 million in aggregate principal amount of its December 2024 Notes for $58.0 million in cash and 9.9 million shares of its common stock in privately negotiated transactions. It was determined that the repurchase of the principal amount should be accounted for as a partial extinguishment of the December 2024 Notes. As a result, a loss on extinguishment of $2.1 million was recorded at closing of the transaction. The loss on extinguishment included the de-recognition of a proportional share of the deferred issuance costs of $1.1 million.

The approval of the Plan of Dissolution by the Company’s stockholders in August 2020 provided for a Fundamental Change Repurchase Right, as defined in the December 2024 Notes Indenture, to each holder of the December 2024 Notes which would require the Company, at the holder’s option, to repurchase for cash on September 29, 2020 such holder’s notes, or any portion of the principal amount thereof, equal to $1,000 or an integral multiple of $1,000. No holders tendered their notes for repurchase under this Fundamental Change Repurchase Right.

The approval of the Plan of Dissolution by the Company’s stockholders also initiated a Fundamental Make-Whole Change allowing the holders of the December 2024 Notes to exercise their conversion rights during the conversion period for a cash amount equal to the conversion rate as defined in the December 2024 Notes Indenture (the “September 2020 Conversion”). No holders exercised their conversion right for the December 2024 Notes.

In December 2020, the Company repurchased $1.0 million par value of December 2024 Notes in a privately negotiated transaction for an aggregate amount of $1.1 million, including interest.

There were no December 2024 Notes outstanding as of December 31, 2020.

The carrying value, accretion and unamortized discount of the December 2024 Notes under the Going Concern Basis were as follows:


(in thousands)	December 31, 2019

Principal amount of the December 2024 Notes	$	11,500
Unamortized discount of liability component	(1,200)
Net carrying value of the December 2024 Notes	$	10,300

Interest expense for the December 2024 Notes included in the Company’s Consolidated Statement of Operations was as follows:


	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Contractual coupon interest	$	49	$	598
Accretion Interest on outstanding principal	42		517
Amortization of debt issuance costs	6		53
Amortization of conversion feature	29		350
Total	$	126	$	1,518

Capped Call Transaction

In connection with the issuance of the December 2024 Notes in the September 2019 Exchange Transaction, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $4.5 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2024 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2024 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction. This initially corresponds to the approximate $3.81 per share conversion price of the December 2024 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2024 Notes. The cap price of the capped call transaction was initially $4.88 per share and is subject to certain adjustments under the terms of the capped call transaction. Both the per share conversion price and cap price were adjusted for the above-noted changes to the conversion rate of the December 2024 Notes that occurred during 2020. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible senior notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

The Company evaluated the capped call transaction under authoritative accounting guidance and determined that it should be accounted for as separate transaction from the debt as it was entered into with a separate counterparty and does not relate to the same risk. The $4.5 million premium for the capped call was classified as a reduction to Additional paid-in capital within stockholders’ equity and will not be subject to recurring fair value measurement.

In connection with the December 2019 Exchange Transaction, the Company unwound a corresponding portion of the capped call related to the notes and repurchased 1.6 million shares of its common stock from the counterparty. The Company paid the capped call counterparty $1.2 million, representing $5.4 million for the common stock repurchased from the counterparty, net of $4.2 million owed from the counterparty to the Company for unwinding the capped call. The common stock repurchased was reflected as a decrease to Retained earnings within stockholders’ equity. The proceeds from the capped call were included as an increase to Additional paid-in capital within stockholders’ equity.

In connection with the repurchase of the December 2024 Notes in December 2020, the Company unwound a corresponding portion of the capped call which generated aggregate proceeds to the Company of $0.1 million.

As of December 31, 2020, the future minimum principal payments under the December 2021 and December 2024 Notes were:


(in thousands)	December 2021 Notes		December 2024 Notes		Total

2021	$	405	$	—	$	405
2022	—		—		—
2023	—		—		—
2024	—		—		—
2025	—		—		—
Thereafter	—		—		—
Total	$	405	$	—	$	405

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Data [Abstract]

Quarterly Financial Information [Text Block]

27. Quarterly Financial Data (Unaudited)


	Two Months Ended		Three Months Ended
(in thousands, except per share amounts)	August 31, 2020		June 30, 2020		March 31, 2020
	(Under Going Concern Basis of Accounting)
Total revenues	$	4,115	$	5,211	$	5,995
Net loss from continuing operations	$	(10,852)	$	(12,929)	$	(19,259)
Net income (loss) from discontinued operations	$	15,236	$	(37,399)	$	(12,752)
Net income (loss) attributable to PDL’s stockholders	$	4,398	$	(49,971)	$	(31,723)
Net loss from continuing operations per basic share	$	(0.10)	$	(0.11)	$	(0.15)
Net income (loss) from discontinued operations per basic share	$	0.14	$	(0.32)	$	(0.11)
Net loss from continuing operations per diluted share	$	(0.10)	$	(0.11)	$	(0.15)
Net income (loss) from discontinued operations per diluted share	$	0.14	$	(0.32)	$	(0.11)
Net income (loss) per basic share	$	0.04	$	(0.43)	$	(0.26)
Net income (loss) per diluted share	$	0.04	$	(0.43)	$	(0.26)


	Three Months Ended
(in thousands, except per share amounts)	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
	(Under Going Concern Basis of Accounting)
Total revenues	$	8,521	$	8,031	$	7,458	$	6,696
Net loss from continuing operations	$	(28,817)	$	(11,811)	$	(8,016)	$	(8,450)
Net (loss) income from discontinued operations	$	(26,011)	$	(6,155)	$	3,502	$	15,067
Net (loss) income attributable to PDL’s stockholders	$	(54,888)	$	(17,784)	$	(4,419)	$	6,680
Net loss from continuing operations per basic share	$	(0.25)	$	(0.10)	$	(0.07)	$	(0.07)
Net (loss) income from discontinued operations per basic share	$	(0.23)	$	(0.06)	$	0.03	$	0.12
Net loss from continuing operations per diluted share	$	(0.25)	$	(0.10)	$	(0.07)	$	(0.07)
Net (loss) income from discontinued operations per diluted share	$	(0.23)	$	(0.06)	$	0.03	$	0.12
Net (loss) income per basic share	$	(0.48)	$	(0.16)	$	(0.04)	$	0.05
Net (loss) income per diluted share	$	(0.48)	$	(0.16)	$	(0.04)	$	0.05

In the fourth quarter of 2020, the Company determined that a $3.0 million tax benefit from discontinued operations was omitted from the consolidated statement of operations for the two-month period ending August 31, 2020. This error resulted from an incorrect tax calculation related to the sale of the Noden business. To correct for this error, the Company recorded an out-of-period adjustment to increase Income tax receivable and record a tax benefit of $3.0 million as of and for the three months ended December 31, 2020. The Company determined that the error and out-of-period correction were not material to any of the Company’s interim period financial statements.

Summary of Significant Accounting Policies (Policies)

8 Months Ended

12 Months Ended

Aug. 31, 2020

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation, Policy

Basis of Presentation

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

Principles of Consolidation, Policy

Principles of Consolidation

Management Estimates, Policy

Use of Estimates

Segment Disclosures, Policy

Segment Reporting

Financing Receivable, Held-for-sale [Policy Text Block]

Assets Held for Sale

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

Cash Equivalents and Investments, Policy

Cash EquivalentsThe Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions and, by policy, limits the amount of credit exposure in any one financial instrument.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Accounts Receivable

Investment, Policy [Policy Text Block]

Investments

Fair Value Measurements, Policy

Fair Value Measurements

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable.

Notes Receivable and Other Long-Term Receivables, Policy

Notes Receivable and Other Long-Term Receivables

Inventory, Policy [Policy Text Block]

Inventory

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Intangible Assets

Property and Equipment, Policy

Property and Equipment


Leasehold improvements						Lesser of useful life or term of lease
Manufacturing equipment						3-5 years
Computer and office equipment						3 years
Transportation equipment						3 years
Furniture and fixtures						7 years
Equipment under lease						Greater of lease term or 5-10 years

Debt, Policy [Policy Text Block]

Convertible Notes

Financing Costs Related to Long-term Debt [Policy Text Block]

Financing Costs Related to Long-term Debt

Product Revenue, Policy

Revenue Recognition

The reported results under the Going Concern Basis reflected the application of ASC 606, Revenue from Contracts with Customers (“ASC 606”).

Policy Elections and Practical Expedients Taken

Upon the Company’s adoption of ASC 606, it elected the following practical expedients:

General

Pharmaceutical

The Company’s Pharmaceutical segment consisted of revenue derived from sales of the Noden Products. Noden’s revenue is included in Loss from discontinued operations.

Noden USA launched an authorized generic of Tekturna in the United States in March 2019.

Reserves for chargebacks, discounts, rebates, sales allowances and product returns are included within Liabilities held for sale in the Company’s Consolidated Balance Sheet as of December 31, 2019.

Medical Devices

The Company recognized revenue as the performance obligations are satisfied by transferring control of the product or service to a customer, as described below.

Product Revenue. The Company recognized revenue for the sale of the following products at a point in time:

Contract Costs

Significant Financing Component

Limited Warranty Obligations

Income Generating Assets

Queen et al. Royalty Revenues [Policy Text Block]

Queen et al. Royalty Revenues

Acquired Royalty Rights, Policy

Royalty Rights - At Fair Value

For each arrangement, the Company is entitled to royalty payments based on revenue generated by the net sales of the product.

In Process Research and Development, Policy [Policy Text Block]

Research and DevelopmentUnder the Going Concern Basis, the Company expensed research and development costs as incurred. Research and development expenses consisted primarily of engineering, product development, clinical studies to develop and support the Company’s products, regulatory expenses, and other costs associated with products and technologies that were in development. Research and development expenses included employee compensation, including stock-based compensation, supplies, consulting, prototyping, testing, materials, travel expenses, and depreciation.

Foreign Currency Hedging, Policy

Foreign Currency Translation

Comprehensive Income, Policy

Comprehensive Loss

Income Tax, Policy [Policy Text Block]

Income Taxes

Lease, Policy [Policy Text Block] (Deprecated 2017-01-31)

Leases

General

Policy Elections and Practical Expedients Taken

The Company adopted a policy of expensing short-term leases, defined as 12 months or less, as incurred.

Lessee arrangements

Lessor arrangements

The Company leased medical device equipment to customers in operating lease arrangements generated from its Medical Devices segment.

whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. If any of these criteria were met, the lease was classified as a sales-type lease. If none of these criteria are met the lease was classified as an operating lease. The Company does not have any sales-type leases.For operating leases, rental income was recognized on a straight-line basis over the lease term. The cost of customer-leased equipment was recorded within Property and equipment, net in the accompanying Consolidated Balance Sheet and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements was reflected in Cost of product revenue in the accompanying Consolidated Statements of Operations for the eight months ended August 31, 2020 and the year ended December 31, 2019. Some of the Company’s operating leases included a purchase option for the customer to purchase the leased asset at the end of the lease arrangement. The purchase price did not qualify as a bargain purchase option. The Company managed its risk on its investment in the equipment through pricing and the term of the leases. Lessees did not provide residual value guarantees on leased equipment. Equipment returned to the Company could be leased or sold to other customers. Initial direct costs were deferred and recognized over the lease term.

New Accounting Pronouncements, Policy [Policy Text Block]

Adopted Accounting Pronouncements

Accounts and Notes Receivable

Recently Issued Accounting Pronouncements

Severance and Retention, Policy

Severance and retention

Liquidation Basis of Accounting, Policy

Liquidation Basis of Accounting

Net Assets in Liquidation (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Net Assets in Liquidation


(in thousands)
Consolidated Net Equity, as of August 31, 2020	$	425,214

Effect of adopting the liquidation basis of accounting:
Change in the estimated value of royalty rights (1)	13,770
Change in the receivable from the sale of Noden (2)	9,056
Increase in intangible assets (3)	28,702
Change in the estimated value of other assets (4)	(4,813)
Estimated liquidation and future operating costs (5)	(25,376)
Total effect of adopting the liquidation basis of accounting	21,339

Net assets in liquidation, as of September 1, 2020	$	446,553

_______________


(in thousands)	August 31, 2020		September 1, 2020		Change
	(Going Concern Basis)		(Liquidation Basis)

Assertio	$	200,463	$	211,626	$	11,163
U-M	17,450		20,057		2,607
Total	$	217,913	$	231,683	$	13,770

Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

Components of amounts reflected in Loss from discontinued operations are as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
Revenues
Product revenue, net	$	29,479	$	55,093	$	80,796
Royalty rights - change in fair value	(8,804)		(31,042)		85,287
Total revenues	20,675		24,051		166,083
Operating expenses
Cost of product revenue (excluding intangible asset amortization and impairment)	17,576		36,343		34,906
Amortization of intangible assets	389		5,016		14,536
General and administrative	6,105		7,264		11,720
Sales and marketing	257		1,675		10,800
Research and development	—		(41)		196
Impairment of intangible assets	—		22,490		152,330
Change in fair value of anniversary payment and contingent consideration	—		—		(42,000)
Total operating expenses	24,327		72,747		182,488
Operating loss from discontinued operations	(3,652)		(48,696)		(16,405)
Non-operating (expense) income, net
Equity affiliate - change in fair value	(25,365)		36,402		—
Loss on classification as held for sale	(28,904)		—		—
Total non-operating (expense) income, net	(54,269)		36,402		—
Loss from discontinued operations before income taxes	(57,921)		(12,294)		(16,405)
Income tax (benefit) expense from discontinued operations	(23,006)		1,303		19,689
Loss from discontinued operations	$	(34,915)	$	(13,597)	$	(36,094)

The carrying amounts of the major classes of assets reported as “Assets held for sale” on the Company’s Consolidated Balance Sheet consisted of the following:


(in thousands)	December 31, 2019

Cash and cash equivalents	$	24,469
Accounts receivable, net	6,993
Inventory	31,712
Prepaid and other current assets	7,192
Property and equipment, net	2,960
Royalty rights - at fair value	266,196
Investment in equity affiliate	82,267
Intangible assets, net	10,112
Other assets	15,956
Total assets held for sale	$	447,857

The carrying amounts of the major classes of liabilities reported as “Liabilities held for sale” on the Company’s Consolidated Balance Sheet consisted of the following:


(in thousands)	December 31, 2019

Accounts payable	$	14,695
Accrued liabilities	16,400
Other long-term liabilities	120
Total liabilities held for sale	$	31,215

Cash and Cash Equivalents [Abstract]

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

Cash Equivalents and Investments (Tables)

12 Months Ended

Dec. 31, 2020

Summary of cash and available-for-sale securities


(in thousands)	December 31, 2020		December 31, 2019 (1) (2)
	(Liquidation Basis)		(Going Concern Basis)
Cash	$	75,681	$	37,718
Money market funds	51,161		131,264


Total	$	126,842	$	168,982

Inventories (Tables)

12 Months Ended

Dec. 31, 2020

Inventories [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories under the Going Concern Basis consisted of the following:


(in thousands)	December 31, 2019

Raw materials	$	3,739
Work in process	1,170
Finished goods	3,152
Total inventories (1) (2)	$	8,061

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tables summarize the changes in Level 3 Royalty Right Assets and the gains and losses included in earnings for the eight months ended August 31, 2020 under the Going Concern Basis:


Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Right Assets

(in thousands)				Royalty Rights - At Fair Value
Fair value as of December 31, 2019					$	266,196



	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		(8,804)
		Cash received from royalty rights		(35,129)
			Total net change in fair value for the period		(43,933)
	Sale of royalty rights				(4,350)

Fair value as of August 31, 2020					$	217,913

The table above does not include the aggregate remaining estimated cost to sell the royalty right assets of $4.6 million.


Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Right Assets
	Fair Value as of		Sale of		Royalty Rights -		Fair Value as of
(in thousands)	December 31, 2019		Royalty Rights (1)		Change in Fair Value		August 31, 2020 (2)
Assertio	$	218,672	$	—	$	(18,209)	$	200,463
VB	13,590		(4,182)		(9,408)		—
U-M	20,398		—		(2,948)		17,450

AcelRx	12,952		—		(12,952)		—

KYBELLA	584		(168)		(416)		—
	$	266,196	$	(4,350)	$	(43,933)	$	217,913

_______________

(1) In August 2020 the Company sold the royalty rights to VB, AcelRx, and KYBELLA to a third-party.

(2) Excludes the aggregate remaining estimated costs to sell of $4.6 million.

Schedule of fair value of financial instruments measured on recurring basis


	December 31, 2019
(in thousands)		Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds		$	131,264	$	—	$	—	$	131,264
Corporate securities (1)		82,267		—		—		82,267
Warrants (2)		—		14,152		—		14,152
Royalty rights - at fair value (3)		—		—		266,196		266,196
Total		$	213,531	$	14,152	$	266,196	$	493,879

Schedule of fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy


	December 31, 2019
(in thousands)		Carrying Value		Fair Value Level 2		Fair Value Level 3
Assets:
Wellstat Diagnostics note receivable		$	50,191	$	—	$	55,389
Hyperion note receivable		1,200		—		1,200








CareView note receivable		690		—		690
Total		$	52,081	$	—	$	57,279
Liabilities:




December 2021 Notes		$	16,950	$	20,978	$	—
December 2024 Notes		10,300		12,953		—

Total		$	27,250	$	33,931	$	—

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease, Cost [Table Text Block]

Lessee arrangements

Prior to the sale of Noden and the spin-off of LENSAR, the Company also included operating leases for their corporate offices and certain equipment.

The components of lease expense from continuing operations under the Going Concern Basis were as follows:


	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Operating lease cost	$	532	$	760
Short-term lease cost	49		79
Total lease cost	$	581	$	839

Supplemental cash flow information related to leases for continuing operations is as follows:


	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	522	$	762
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	3,320	$	2,055

Operating Leases

Classification

December 31, 2019

Operating lease ROU assets

Other assets

1,359

Operating lease liabilities, current

Accrued liabilities

760

Operating lease liabilities, long-term

Other long-term liabilities

634

Total operating lease liabilities

1,394

Weighted-average remaining lease term

1.9 years

Weighted-average discount rate

6.5

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturities of operating lease liabilities as of December 31, 2020 are as follows (in thousands):


Fiscal Year	Amount

2021	$	37
2022	38
2023	—
2024	—
2025	—
Thereafter	—
Total operating lease payments	75
Less: imputed interest	—
Total operating lease liabilities	$	75

Sales-type Lease, Lease Income

The components of lease income under the Going Concern Basis were as follows:

Eight Months Ended

Year Ended

(in thousands)

Classification

August 31, 2020

December 31, 2019

Operating lease income

Lease revenue

2,139

5,072

Equipment Under Lease [Table Text Block]


(in thousands)	December 31, 2019

Equipment under lease	$	6,652
Less accumulated depreciation	(5,231)
Equipment under lease, net	$	1,421

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]


(in thousands)	December 31, 2019
Leasehold improvements	$	350
Manufacturing equipment	1,550
Computer and office equipment	9,101
Furniture and fixtures	136
Equipment under lease	6,652
Transportation equipment	67
Total	17,856
Less accumulated depreciation	(16,040)
Construction in progress	744
Property and equipment, net (1) (2)	$	2,560

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Intangible Assets and Goodwill [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The components of intangible assets as of December 31, 2019 were as follows:


	December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:

Customer relationships 1, 3	$	4,045	$	(884)	$	3,161
Acquired technology 1, 2, 4	11,500		(1,741)		9,759
Acquired trademarks 1	570		(304)		266
Total 5	$	16,115	$	(2,929)	$	13,186

_______________

3 LENSAR acquired certain intangible assets for customer relationships from Precision Eye Services, which were being amortized using a double-declining method over a period of 20 years.

4 LENSAR acquired certain intangible assets from a third-party in 2019, which were being amortized on a straight-line basis over a period of 15 years.

Accrued Liabilities Accrued rebates, chargebacks and other revenue reserves (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Sales Allowances and Accruals Rollforward [Table Text Block]

Accrued liabilities under the Going Concern Basis consisted of the following:


(in thousands)	December 31, 2019

Accrued rebates, chargebacks and other revenue reserves	$	5
Deferred revenue	959
Compensation	6,823
Interest	70




Legal	921
Other	3,145
Total (1) (2)	$	11,923

________________

(2) The amounts above include amounts held by LENSAR which was spun-off on October 1, 2020.

Other Long-Term Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Other Liabilities Disclosure [Abstract]

Schedule of other liabilities


(in thousands)	December 31,2019

Uncertain tax positions	$	37,574
Deferred tax liability	1,571
Accrued lease liability	10,700




Other	1,020
Total (1) (2)	$	50,865

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)


(in thousands)	Unrealized gains (losses) on available-for- sale securities		Total Accumulated Other Comprehensive Income




Balance at December 31, 2017	$	1,181	$	1,181

Activity for the year ended December 31, 2018	(1,181)		(1,181)
Ending Balance at December 31, 2018	—		—

Activity for the year ended December 31, 2019	—		—
Ending Balance at December 31, 2019	—		—

Activity for the eight months ended August 31, 2020	—		—
Ending Balance at August 31, 2020	$	—	$	—

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments [Table Text Block]

the eight months ended August 31, 2020 and years ended December 31, 2019 and 2018:


	Eight Months Ended August 31,		Year Ended December 31,
Stock-based Compensation	2020		2019		2018
(in thousands)
Employees and directors (1)	$	18,802	$	6,834	$	4,337

Schedule of common stock activity available under share-based compensation plans

The number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock awards, shares of common stock subject to outstanding awards and shares available for grant under this plan as of December 31, 2020, are as follows:

Title of Plan

Total Shares of Common Stock Authorized

Total Shares of Common Stock Issued

Total Shares of Common Stock Available for Grant

2005 Equity Incentive Plan

26,200,000

17,731,795

8,468,205

Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]


	2020
	Number of shares	Weighted-average grant-date fair value per share
	(in thousands)
Unvested at beginning of year	933	$	3.56
Awards granted	3,044	$	3.10
Awards vested	(2,872)	$	3.14
Withheld related to net settlement	(1,089)	$	3.39
Forfeited	(16)	$	3.22
Unvested at end of year	—	$	—

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]


	Eight Months Ended August 31,	Year Ended December 31,
	2020	2019			2018

Range of expected term (in years)	1.0	3.5	-	6.1	3.5	-	6.0
Range of risk-free interest rate	0.1%	1.5%	-	3.0%	2.7%	-	3.0%
Expected volatility	55%	40%			40%

Contract with Customer, Asset and Liability [Table Text Block]

Tabular disclosure of an equity-based arrangement (such as stock or unit options and stock or unit awards) with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain equity-based awards at future dates, sometimes including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares or units issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

+ References + Details

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2020

Contract assets [Line Items]

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:


(in thousands)	December 31, 2019

Receivables, net	$	10,377
Contract assets	$	3,512
Contract liabilities	$	4,024


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract assets at December 31, 2019	$	—	$	3,512	$	3,512
Contract assets recognized	—		(6,730)		(6,730)
Payments received	—		8,562		8,562
Contract assets disposed of	—		(5,344)		(5,344)
Contract assets at December 31, 2020	$	—	$	—	$	—


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract liabilities at December 31, 2019	$	1,075	$	2,949	$	4,024
Additions	658		1,659		2,317
Amounts recognized in revenue	(851)		(888)		(1,739)
Contract liabilities disposed of	(882)		(3,720)		(4,602)
Contract liabilities at December 31, 2020	$	—	$	—	$	—

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenue


	Eight Months Ended August 31, 2020				Year Ended December 31, 2019
(in thousands)	Medical Devices		Pharmaceutical (1)		Medical Devices		Pharmaceutical (1)

Primary geographical markets:
North America	$	6,656	$	10,093	$	10,155	$	26,034
Europe	2,078		13,008		3,438		22,816
Asia	4,137		6,378		11,536		6,243
Other	200		—		433		—
Total revenue from contracts with customers (2)	$	13,071	$	29,479	$	25,562	$	55,093

_______________

Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

Information regarding the Company’s segments for the eight months ended August 31, 2020 and the year ended December 31, 2019 is as follows:


Revenues by segment	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Medical Devices	$	15,211	$	30,742
Strategic Positions	—		—
Pharmaceutical	—		—
Income Generating Assets	110		(36)
Total revenues	$	15,321	$	30,706

________________

The table above excludes revenues related to discontinued operations. See Note 4, Discontinued Operations Classified as Assets Held for Sale, for additional information.


(Loss) income by segment	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Medical Devices	$	(4,454)	$	(5,230)
Strategic Positions	(15,723)		28,758
Pharmaceutical (1)	(15,855)		(19,048)
Income Generating Assets (1)	(37,217)		(74,891)
Total	(73,249)		(70,411)
Change in fair value of warrants not allocated to segments (2)	(4,047)		—
Total net loss	$	(77,296)	$	(70,411)

________________


Long-lived assets by segment	Year Ended
(in thousands)	December 31, 2019

Medical Devices	$	2,435
Strategic Positions	—
Pharmaceutical (1)	2,960
Income Generating Assets	125
Total long-lived assets	$	5,520

________________

Customer Concentration (Tables)

12 Months Ended

Dec. 31, 2020

Risks and Uncertainties [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

The percentage of total revenue recognized, which individually accounted for 10% or more of the Company’s total revenues in one or more of the periods presented below, was as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020 (1)		2019 (1)		2018 (1)



Biogen	—	%	—	%	14	%
LENSAR	99	%	100	%	77	%

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Total revenues by geographic area are based on the country of domicile of the counterparty to the agreement are as follows:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018

United States	$	6,656	$	15,151	$	21,434
Europe	2,078		3,438		2,451
Rest of world	4,337		12,117		8,143
Total revenues (1)	$	13,071	$	30,706	$	32,028

________________

One customer accounted for more than 10% of accounts receivable, net as of December 31, 2019.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

income before income taxes, by location [Table Text Block]

For financial reporting purposes, Loss before income taxes from continuing operations includes the following components:


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
United States	$	(60,820)	$	(61,446)	$	(39,518)
Foreign	—		—		—
Total	$	(60,820)	$	(61,446)	$	(39,518)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
Current income tax (benefit) expense
Federal	$	(14,316)	$	3,750	$	(271)
State	1,051		2,046		1,033
Foreign	—		—		—
Total current	(13,265)		5,796		762
Deferred income tax (benefit) expense
Federal	(4,340)		(10,978)		(7,932)
State	(175)		830		(615)
Foreign	—		—		1,032
Total deferred	(4,515)		(10,148)		(7,515)
Total provision	$	(17,780)	$	(4,352)	$	(6,753)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]


	Eight Months Ended August 31,		Year Ended December 31,
(in thousands)	2020		2019		2018
Tax at U.S. statutory rate on loss before income taxes	$	(12,772)	$	(12,904)	$	(8,299)
Change in valuation allowance	(3,762)		3,613		875
State taxes	656		2,446		(397)


Change in uncertain tax positions	—		1,513		809



True-ups	—		249		(27)
CARES Act refund	(5,406)		—		—
Other	3,504		731		286
Total	$	(17,780)	$	(4,352)	$	(6,753)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]


(in thousands)	December 31, 2020		December 31, 2019
	(Liquidation Basis)		(Going Concern Basis)
Deferred tax assets:
Net operating loss carryforwards	$	3,345	$	3,602
Research and other tax credits	1,448		1,448
ASC 740-10 Reserve	6,455		8,419
Stock-based compensation	2,513		1,758
Accruals	84		1,388

Debt modifications	6,030		7,189

Capital loss carryforward	2,947		1,213
Other	51		1,145
Total deferred tax assets	22,873		26,162
Valuation allowance	(21,105)		(7,465)
Total deferred tax assets, net of valuation allowance	1,768		18,697
Deferred tax liabilities:

Debt modifications	—		(308)
Intangible assets	(21,673)		(19,649)
Other	(16)		(311)

Total deferred tax liabilities	(21,689)		(20,268)
Net deferred tax liabilities	$	(19,921)	$	(1,571)

Summary of Income Tax Contingencies [Table Text Block]


	December 31,
(in thousands)	2020		2019		2018
Balance at the beginning of the year	$	84,213	$	80,783	$	79,179
Increases related to tax positions from prior fiscal years	—		3,927		1,604

Increases related to tax positions taken during current fiscal year	8,412		—		—
Decreases related to tax positions from prior fiscal years	(6,867)		(497)		—
Balance at the end of the year	$	85,758	$	84,213	$	80,783

Net Income per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share


Net Loss per Basic and Diluted Share	Eight Months Ended August 31,		Year Ended December 31,
(in thousands, except per share amounts)	2020		2019		2018
Numerator


Net loss from continuing operations	$	(43,040)	$	(57,094)	$	(32,765)
Net loss from discontinued operations	$	(34,915)	$	(13,597)	$	(36,094)
Loss attributable to the PDL’s stockholders used to compute net loss per basic and diluted share	$	(77,296)	$	(70,411)	$	(68,859)

Denominator
Total weighted-average shares used to compute net loss attributable to PDL's stockholders, per basic share	118,001		118,631		145,669








Shares used to compute net loss attributable to PDL’s stockholders, per diluted share	118,001		118,631		145,669

Net loss per share - basic
Continuing operations	$	(0.36)	$	(0.48)	$	(0.22)
Discontinued operations	$	(0.30)	$	(0.11)	$	(0.25)
Net loss attributable to PDL’s stockholders per basic share	$	(0.66)	$	(0.59)	$	(0.47)

Net loss per share - diluted
Continuing operations	$	(0.36)	$	(0.48)	$	(0.22)
Discontinued operations	$	(0.30)	$	(0.11)	$	(0.25)
Net loss attributable to PDL’s stockholders per diluted share	$	(0.66)	$	(0.59)	$	(0.47)

Convertible Notes (Tables)

12 Months Ended

Dec. 31, 2020

Debt Instrument [Line Items]

Carrying value and unamortized discount on December [Table Text Block]

The carrying value, accretion and unamortized discount of the December 2024 Notes under the Going Concern Basis were as follows:


(in thousands)	December 31, 2019

Principal amount of the December 2024 Notes	$	11,500
Unamortized discount of liability component	(1,200)
Net carrying value of the December 2024 Notes	$	10,300

Schedule of interest expense for December 2024 Notes [Table Text Block]

Interest expense for the December 2024 Notes included in the Company’s Consolidated Statement of Operations was as follows:


	Eight Months Ended		Year Ended
(in thousands)	August 31, 2020		December 31, 2019

Contractual coupon interest	$	49	$	598
Accretion Interest on outstanding principal	42		517
Amortization of debt issuance costs	6		53
Amortization of conversion feature	29		350
Total	$	126	$	1,518

Schedule of carrying value and unamortized discount on December 2021 Notes [Table Text Block]

The carrying value and unamortized discount of the December 2021 Notes were as follows:


(in thousands)	December 31, 2020		December 31, 2019
	(Liquidation Basis)		(Going Concern Basis)

Principal amount of the December 2021 Notes	$	2,330	$	19,170
Unamortized discount of liability component under Going Concern Basis	—		(2,220)
Expected settlement premium under Liquidation Basis	132		—
Net carrying value of the December 2021 Notes	$	2,462	$	16,950

Schedule of interest expense for February 2018 Notes [Table Text Block]

Interest expense for the February 2018 Notes on the Company’s Consolidated Statements of Operations was as follows:


(in thousands)	Year Ended December 31, 2018

Contractual coupon interest	$	422
Amortization of debt issuance costs	88
Amortization of debt discount	293
Total	$	803

Schedule of interest expense for December 2021 Notes [Table Text Block]

Interest expense for the December 2021 Notes included in the Company’s Consolidated Statements of Operations was as follows:


	Eight Months Ended		Year Ended December 31,
(in thousands)	August 31, 2020		2019		2018

Contractual coupon interest	$	281	$	3,390	$	4,125
Amortization of debt issuance costs	5		64		76
Amortization of debt discount	39		459		542
Amortization of conversion feature	544		5,973		6,611
Total	$	869	$	9,886	$	11,354

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Data [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]


	Two Months Ended		Three Months Ended
(in thousands, except per share amounts)	August 31, 2020		June 30, 2020		March 31, 2020
	(Under Going Concern Basis of Accounting)
Total revenues	$	4,115	$	5,211	$	5,995
Net loss from continuing operations	$	(10,852)	$	(12,929)	$	(19,259)
Net income (loss) from discontinued operations	$	15,236	$	(37,399)	$	(12,752)
Net income (loss) attributable to PDL’s stockholders	$	4,398	$	(49,971)	$	(31,723)
Net loss from continuing operations per basic share	$	(0.10)	$	(0.11)	$	(0.15)
Net income (loss) from discontinued operations per basic share	$	0.14	$	(0.32)	$	(0.11)
Net loss from continuing operations per diluted share	$	(0.10)	$	(0.11)	$	(0.15)
Net income (loss) from discontinued operations per diluted share	$	0.14	$	(0.32)	$	(0.11)
Net income (loss) per basic share	$	0.04	$	(0.43)	$	(0.26)
Net income (loss) per diluted share	$	0.04	$	(0.43)	$	(0.26)


	Three Months Ended
(in thousands, except per share amounts)	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
	(Under Going Concern Basis of Accounting)
Total revenues	$	8,521	$	8,031	$	7,458	$	6,696
Net loss from continuing operations	$	(28,817)	$	(11,811)	$	(8,016)	$	(8,450)
Net (loss) income from discontinued operations	$	(26,011)	$	(6,155)	$	3,502	$	15,067
Net (loss) income attributable to PDL’s stockholders	$	(54,888)	$	(17,784)	$	(4,419)	$	6,680
Net loss from continuing operations per basic share	$	(0.25)	$	(0.10)	$	(0.07)	$	(0.07)
Net (loss) income from discontinued operations per basic share	$	(0.23)	$	(0.06)	$	0.03	$	0.12
Net loss from continuing operations per diluted share	$	(0.25)	$	(0.10)	$	(0.07)	$	(0.07)
Net (loss) income from discontinued operations per diluted share	$	(0.23)	$	(0.06)	$	0.03	$	0.12
Net (loss) income per basic share	$	(0.48)	$	(0.16)	$	(0.04)	$	0.05
Net (loss) income per diluted share	$	(0.48)	$	(0.16)	$	(0.04)	$	0.05

Organization and Business (Narrative) (Detail) $ / shares in Units, $ in Millions		8 Months Ended	12 Months Ended
	Oct. 02, 2020 shares	Aug. 31, 2020	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 USD ($)
Principal Transaction Revenue [Line Items]
Number of Reportable Segments		4	4
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares			$ 6.38
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right			3,333,334
LENSAR [Member]
Principal Transaction Revenue [Line Items]
Common Stock Dividends (in shares)	0.075879
Percentage of Voting Rights Owned Prior to Distribution	81.50%
Evofem [Member]
Principal Transaction Revenue [Line Items]
Investment Owned, at Cost \| $				$ 60.0

Summary of Significant Accounting Policies 1 (Narrative) (Detail) $ / shares in Units, $ in Thousands		8 Months Ended	9 Months Ended	12 Months Ended
	Jan. 07, 2018 USD ($)	Aug. 31, 2020 USD ($) numberOfNotesRecivables	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017	Jan. 01, 2019 USD ($)
Financing Receivable, Impaired [Line Items]
Foreign Currency Transaction Gain (Loss), before Tax		$ 200			$ 500	$ 700
Medicare Part D insurance coverage gap				70	70	50
Asset Impairment Charges		$ 0			$ 10,768	$ 8,200
Federal income tax rate				21.00%			35.00%
Maximum maturity period of investments considered as cash equivalents				3 months
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right \| shares				3,333,334
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares				$ 6.38
Number of notes receivable investments on non-accrual				1	2
Maximum amount of additional funds, upon attainment of milestones	$ 2,000
Number of Reportable Segments		4		4
Notes Receivable, Fair Value Disclosure				$ 700	$ 57,300
Interest revenue		$ 0			0	2,337
Accounts and Financing Receivable, after Allowance for Credit Loss					52,100
Proceeds from Sale of Intangible Assets		0			5,000	0
Operating Lease, Right-of-Use Asset					1,359			$ 2,100
Operating Lease, Liability				75	1,394			$ 2,100
Restructuring Reserve				$ 300
Share-based Payment Arrangement, Accelerated Cost		$ 15,700
Number Of Customers, Waive Monthly Rental And Minimum Monthly License Fees \| numberOfNotesRecivables		23
Revenues, Waive Monthly Rental And Minimum Monthly License Fees		$ 900
Operating Lease, Liability, Statement of Financial Position [Extensible List]				us-gaap:LiabilitiesAbstract				us-gaap:LiabilitiesAbstract
New Accounting Pronouncements, Policy [Policy Text Block]		Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The guidance amended the impairment model to utilize an expected loss methodology in place of the incurred loss methodology, resulting in more timely recognition of losses. The Company adopted ASU No. 2016-13 on January 1, 2020 using a modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. As a consequence of adopting ASU 2016-13, the Company’s accounts receivable accounting policy under the Going Concern Basis was updated, as follows: Accounts and Notes Receivable The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely and the Company ceases collection efforts. The Company applies the practical expedient for its collateral-dependent notes receivable. Estimated credit losses are based on the fair value of the collateral (less costs to sell, as applicable). In April 2020, the FASB issued a staff question-and-answer document, “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” (the “COVID-19 Q&A”), to address certain frequently asked questions pertaining to lease concessions arising from the effects of the COVID-19 pandemic. Existing lease guidance requires entities to determine if a lease concession was a result of a new arrangement reached with the lessee (which would be addressed under the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (which would not fall under the lease modification framework). The COVID-19 Q&A clarifies that entities may elect to not evaluate whether lease-related relief granted in light of the effects of COVID-19 is a lease or obligations of the lease. This election is available for concessions that result in the total payments required by the modified contract being substantially the same or less than the total payments required by the original contract. As a result of the COVID-19 pandemic, LENSAR entered into agreements with 23 customers through which LENSAR agreed to waive monthly rental and minimum monthly license fees ranging from one to four months for an aggregate of $0.9 million of revenue for the eight months ended August 31, 2020, consisting of $0.5 million in Product revenue, $0.3 million in Lease revenue and $0.1 million in Service revenue. In return for these concessions the related contracts were extended by the same number of months waived. No accounts receivable or notes receivable amounts were deemed uncollectible due to COVID-19 during the 2020 periods presented herein; however, the Company considered the effects of COVID-19 in estimating its credit losses for the period. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The Company adopted ASU No. 2018-13 on January 1, 2020. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company adopted ASU No. 2018-15 on January 1, 2020 using the prospective transition option. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective for public companies for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings/(deficit) in the period of adoption. The Company does not expect this guidance to have a significant impact on its financial statements.
Minimum [Member]
Financing Receivable, Impaired [Line Items]
Term of receivable (in Duration)				30 days
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		5 years
Duration Of Agreement, Waive Monthly Rental And Minimum Monthly License Fees		1 month
Maximum [Member]
Financing Receivable, Impaired [Line Items]
Term of receivable (in Duration)				90 days
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		20 years
Duration Of Agreement, Waive Monthly Rental And Minimum Monthly License Fees		4 months
CareView [Member]
Financing Receivable, Impaired [Line Items]
Asset Impairment Charges		$ 0			10,800	8,200
Interest revenue						2,300
DirectFlow [Member]
Financing Receivable, Impaired [Line Items]
Proceeds from Sale of Intangible Assets			$ 5,000		5,000
License and other [Member] \| DirectFlow [Member]
Financing Receivable, Impaired [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 500
Product Revenue [Member]
Financing Receivable, Impaired [Line Items]
Revenue from Contract with Customer, Including Assessed Tax		10,946			22,331	15,928
Revenues, Waive Monthly Rental And Minimum Monthly License Fees		500
Lease Revenue [Member]
Financing Receivable, Impaired [Line Items]
Revenues, Waive Monthly Rental And Minimum Monthly License Fees		300
Service
Financing Receivable, Impaired [Line Items]
Revenue from Contract with Customer, Including Assessed Tax		2,126			$ 3,339	$ 2,821
Revenues, Waive Monthly Rental And Minimum Monthly License Fees		$ 100

Summary of Significant Accounting Policies (Schedule of Property and Equipment of Estimated Useful Lives) (Detail)	8 Months Ended
	Aug. 31, 2020
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	Lesser of useful life or term of lease
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	3-5 years
Equipment Leased to Other Party [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	Greater of lease term or 5-10 years
Transportation Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	3 years

Net Assets in Liquidation (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 01, 2020	Dec. 31, 2020	Dec. 31, 2018	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2017
Liquidation Basis Of Accounting [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest			$ 729,779	$ 425,214	$ 593,278	$ 845,890
Effect of adopting the liquidation basis of accounting	$ (21,339)
Liquidation Basis of Accounting, Net Assets (Liabilities)	446,553	$ 386,919		446,553
Assets [Member]
Liquidation Basis Of Accounting [Line Items]
Quantifying Misstatement in Current Year Financial Statements, Amount		$ 3,000	$ 9,800
Royalty Assets
Liquidation Basis Of Accounting [Line Items]
Royalty assets	231,683			217,913
Change in royalty assets	13,770
Assertio
Liquidation Basis Of Accounting [Line Items]
Royalty assets	211,626			200,463
Change in royalty assets	11,163
U-M
Liquidation Basis Of Accounting [Line Items]
Royalty assets	20,057			$ 17,450
Change in royalty assets	2,607
Change in the estimated value of royalty rights
Liquidation Basis Of Accounting [Line Items]
Effect of adopting the liquidation basis of accounting	(13,770)
Change in the receivable from the sale of Noden
Liquidation Basis Of Accounting [Line Items]
Effect of adopting the liquidation basis of accounting	(9,056)
Estimated value of LENSAR
Liquidation Basis Of Accounting [Line Items]
Effect of adopting the liquidation basis of accounting	(28,702)
Change in the estimated value of other assets
Liquidation Basis Of Accounting [Line Items]
Effect of adopting the liquidation basis of accounting	(4,813)
Estimated liquidation and future operating costs
Liquidation Basis Of Accounting [Line Items]
Effect of adopting the liquidation basis of accounting	$ (25,376)

Assets Held for Sale (Details) $ in Thousands		2 Months Ended	3 Months Ended							8 Months Ended	12 Months Ended
Assets Held for Sale (Details) $ in Thousands	Sep. 09, 2020 USD ($) numberOfNotesRecivables	Aug. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Aug. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		$ 4,115		$ 5,211	$ 5,995	$ 8,521	$ 8,031	$ 7,458	$ 6,696	$ 15,321		$ 30,706	$ 32,028
Cost of Revenue										6,626		17,276	13,555
Amortization of Intangible Assets										841		1,290	1,294
General and Administrative Expense										29,695		38,334	33,700
Selling and Marketing Expense										3,322		6,806	6,341
Research and Development Expense										(4,374)		(7,350)	(2,759)
Change in fair value of contingent consideration										0		0	369
Operating Income (Loss)										(54,250)		(51,118)	(34,190)
Nonoperating Income (Expense)										(6,570)		(10,328)	(5,328)
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax										(57,921)		(12,294)	(16,405)
Discontinued Operation, Tax Effect of Discontinued Operation										(23,006)		1,303	19,689
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax		15,236		(37,399)	(12,752)	(26,011)	$ (6,155)	$ 3,502	$ 15,067	(34,915)		(13,597)	(36,094)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations		25,060				24,469				25,060		24,469	28,910
Accounts Receivable, after Allowance for Credit Loss, Current						6,559						6,559
Inventory, net						8,061						8,061
Prepaid and other current assets						7,344						7,344
Property, Plant and Equipment, Net						2,560						2,560
Royalty rights - at fair value						266,196						266,196
Intangible assets, net						13,186						13,186
Other assets						9,247						9,247
Assets						717,206						717,206
Accounts Payable, Current						2,675						2,675
Accrued liabilities						11,923						11,923
Other Liabilities, Noncurrent						50,865						50,865
Liabilities						123,928						123,928
Disposal Group, Including Discontinued Operation, Consideration to be Received, Number of Quarterly Installments \| numberOfNotesRecivables	12
Disposal Group, Including Discontinued Operation, Additional Consideration to be Received, Number of Quarterly Installments \| numberOfNotesRecivables	4
Disposal Group, Including Discontinued Operation, Consideration to be Received, Number of Quarterly Installments \| numberOfNotesRecivables	12
Disposal Group, Including Discontinued Operation, Additional Consideration to be Received, Number of Quarterly Installments \| numberOfNotesRecivables	4
Kybella, Zalviso, and Coflex [Member] \| Discontinued Operations, Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Consideration		$ 4,350								4,350
Noden [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Increase (Decrease) in Assets Held-for-sale				$ 16,800	$ 4,900
Noden [Member] \| Discontinued Operations, Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ 12,200
Disposal Group, Including Discontinued Operation, Contingent Consideration, Value-Added Tax Receivable	500
Disposal Group, Including Discontinued Operation, Consideration to be Received	33,000
Disposal Group, Including Discontinued Operation, Contingent Consideration	2,500
Disposal Group, Including Discontinued Operation, Additional Consideration to be Received	$ 3,900
Disposal Group, Including Discontinued Operation, Contingent Consideration, Period after Closing Date for Binding Agreement Contingency			1 year
Disposal Group, Including Discontinued Operation, Contingent Consideration, License Fee Rate	50.00%
isposal Group, Including Discontinued Operation, Contingent Consideration, License Fee Rate, Period of Receipt	10 days
Disposal Group, Including Discontinued Operation, Gain (Loss) on Disposal	$ 200
Liquidation Basis of Accounting, Receivables from Asset Sales			$ 39,400								$ 39,400
Disposal Group, Including Discontinued Operation, Contingent Consideration, Period after Closing Date for Binding Agreement Contingency			1 year
isposal Group, Including Discontinued Operation, Contingent Consideration, License Fee Rate, Period of Receipt	10 days
Disposal Group, Including Discontinued Operation, Contingent Consideration, License Fee Rate	50.00%
Disposal Group, Including Discontinued Operation, Gain (Loss) on Disposal	$ 200
Disposal Group, Including Discontinued Operation, Additional Consideration to be Received	3,900
Noden [Member] \| Discontinued Operations, Disposed of by Sale [Member] \| Maximum [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ 52,800
Product Revenue [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from Contract with Customer, Including Assessed Tax										10,946		22,331	15,928
Acquired rights [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues										0		0	(30)
Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues										20,675		24,051	166,083
Cost of Revenue										17,576		36,343	34,906
Amortization of Intangible Assets										389		5,016	14,536
General and Administrative Expense										6,105		7,264	11,720
Selling and Marketing Expense										257		1,675	10,800
Research and Development Expense										0		(41)	(196)
Impairment of Intangible Assets, Finite-lived										0	$ 22,500	22,490	152,330
Change in fair value of contingent consideration										0		0	(42,000)
Operating Expenses										24,327		72,747	182,488
Unrealized Gain (Loss) on Investments										(25,365)		36,402	0
Increase (Decrease) in Assets Held-for-sale										(28,904)		0	0
Operating Income (Loss)										(3,652)		(48,696)	(16,405)
Nonoperating Income (Expense)										(54,269)		36,402	0
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax										(57,921)		(12,294)	(16,405)
Discontinued Operation, Tax Effect of Discontinued Operation										(23,006)		1,303
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax										(34,915)		(13,597)	(36,094)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations						24,500						24,500
Accounts Receivable, after Allowance for Credit Loss, Current						6,993						6,993
Inventory, net						31,712						31,712
Prepaid and other current assets						7,192						7,192
Property, Plant and Equipment, Net						2,960						2,960
Royalty rights - at fair value						266,196						266,196
Investments						82,267						82,267
Intangible assets, net						10,112						10,112
Other assets						15,956						15,956
Assets						447,857						447,857
Accounts Payable, Current						14,695						14,695
Accrued liabilities						16,400						16,400
Other Liabilities, Noncurrent						120						120
Liabilities						$ 31,215						31,215
Discontinued Operations, Held-for-sale [Member] \| Product Revenue [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from Contract with Customer, Including Assessed Tax										29,479		55,093	80,796
Discontinued Operations, Held-for-sale [Member] \| Acquired rights [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues										$ (8,804)		$ (31,042)	$ 85,287

Investment in Evofem (Details) - USD ($) $ / shares in Units, $ in Thousands		8 Months Ended	12 Months Ended
	May 21, 2020	Aug. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	May 14, 2020	Jun. 10, 2019	Apr. 11, 2019
Debt and Equity Securities, FV-NI [Line Items]
Gain (Loss) on Investments		$ (5,576)		$ 0	$ 764
Dividends, Common Stock, Paid-in-kind		64,400	$ 64,400	0	$ 0
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right			3,333,334
Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Investment Owned, at Cost				60,000
Tranche 1 of investment								$ 30,000
Investment Owned, Balance, Shares								6,666,667
Tranche 2 of investment							$ 30,000
Shares acquired							6,666,667
Cost of investment, per share							$ 4.50	$ 4.50
Warrants acquired							1,666,667	1,666,667
Warrants and Rights Outstanding, Term								7 years
Warrant exercise price			$ 6.38
Unrealized Gain (Loss) on Investments		25,400		(36,400)
Stock Dividends, Shares	13,333,334
Ownership percentage distributed						26.70%
Other Assets			$ 1,800
Evofem [Member] \| Common Stock [Member]
Debt and Equity Securities, FV-NI [Line Items]
Unrealized Gain (Loss) on Investments		(17,900)
Evofem [Member] \| Warrant [Member]
Debt and Equity Securities, FV-NI [Line Items]
Unrealized Gain (Loss) on Investments		$ (7,500)
Warrant [Member] \| Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Gain (Loss) on Investments				4,800
Common Stock [Member] \| Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Unrealized Gain (Loss) on Investments				$ (31,600)

Cash Equivalents and Investments (Narrative) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Aug. 31, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations	$ 28,910,000	$ 25,060,000	$ 24,469,000
Gains (losses) on sales of available-for-sale securities	$ 800,000
Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations			$ 24,500,000

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of Available-For-Sale Securities [Line Items]
Cash and Cash Equivalents	$ 126,842	$ 168,982
Cash [Member]
Schedule of Available-For-Sale Securities [Line Items]
Cash and Cash Equivalents	75,681	37,718
Money Market Funds [Member]
Schedule of Available-For-Sale Securities [Line Items]
Cash and Cash Equivalents	$ 51,161	$ 131,264

Inventories (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Inventory [Line Items]
Inventory, Raw Materials, Gross	$ 3,739
Inventory, Work in Process, Gross	1,170
Inventory, Finished Goods, Gross	3,152
Inventory, Net	8,061
Discontinued Operations, Held-for-sale [Member]
Inventory [Line Items]
Inventory, Net	$ 31,712

Fair Value Measurements (Narrative) (Detail) $ / shares in Units, shares in Millions				2 Months Ended	3 Months Ended						8 Months Ended	12 Months Ended
	May 15, 2020	Jan. 07, 2018 USD ($)	Jul. 08, 2016 USD ($)	Aug. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) numberOfNotesRecivables $ / shares shares	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Aug. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) numberOfNotesRecivables $ / shares shares	Dec. 31, 2018 USD ($)	Dec. 30, 2019 USD ($)	Aug. 01, 2018 USD ($)	Jun. 27, 2018 USD ($)	Jul. 09, 2016 USD ($)	Sep. 18, 2015 USD ($)	Nov. 06, 2014 USD ($)	Jun. 26, 2014 USD ($)	Oct. 18, 2013 USD ($)
Asset Impairment Charges											$ 0		$ 10,768,000	$ 8,200,000
Intangible assets, net							$ 13,186,000						13,186,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				$ 217,913,000			266,196,000				217,913,000		266,196,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											(4,350,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(43,933,000)
Cash payment for purchase of royalty right																				$ 65,600,000
Proceeds from Legal Settlements												$ 7,500,000
Royalty rights - at fair value							266,196,000						266,196,000
Percentage of royalty acquired																				75.00%
Revenues				4,115,000	$ 5,211,000	$ 5,995,000	8,521,000	$ 8,031,000	$ 7,458,000	$ 6,696,000	15,321,000		30,706,000	32,028,000
Maximum amount of additional funds, upon attainment of milestones		$ 2,000,000.0
Change in fair value of acquired royalty rights, Level 3 Rollforward											(8,804,000)		(31,042,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements											0		0	(858,000)
Notes Receivable, Fair Value Disclosure							57,300,000					$ 700,000	57,300,000
Gain (Loss) on Disposition of Assets											0		3,476,000	0
Notes Payable, Carrying Value							27,250,000						27,250,000
Assets, Fair Value							$ 493,879,000						$ 493,879,000
Number Of Notes Receivable Assets \| numberOfNotesRecivables							2						2
Transfers from level 1 to level 2, amount				0			$ 0				0		$ 0
Transfers from level 2 to level 1, amount				0			0				0		0
Fair Value Level 2 [Member]
Royalty rights - at fair value							0						0
Notes payable, Fair Value							33,931,000						33,931,000
Assets, Fair Value							14,152,000						14,152,000
Fair Value Level 3 [Member]
Royalty rights - at fair value							266,196,000						266,196,000
Notes Receivable, Fair Value Disclosure							57,279,000						57,279,000
Notes payable, Fair Value							0						0
Assets, Fair Value							266,196,000						266,196,000
Royalty right [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				217,913,000			266,196,000				217,913,000		266,196,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											(4,350,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(43,933,000)
Estimated cost to sell				4,600,000							4,600,000
Assets [Member]
Assets, Fair Value							52,081,000						52,081,000
Assets [Member] \| Fair Value Level 2 [Member]
Notes Receivable, Fair Value Disclosure							0						0
Noden [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate					17.00%	19.00%
Loss on classification as held for sale						$ 6,700,000
Estimated cost to sell						1,800,000
Increase (Decrease) in Assets Held-for-sale					$ 16,800,000	$ 4,900,000
VB [Member]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount																					$ 15,500,000
Royalty asset multiple												2.3
Payments for (Proceeds from) Productive Assets											(4,200,000)
Gain (Loss) on Disposition of Assets											0
VB [Member] \| Royalty right [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				0			$ 13,590,000				0		$ 13,590,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											(4,182,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(9,408,000)
U-M
Cash flow model expected royalty sales term							3 years
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate							12.80%						12.80%
U-M \| Royalty right [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				17,450,000			$ 20,398,000				17,450,000		$ 20,398,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(2,948,000)
Depomed [Member]
Cash payment for purchase of royalty right																$ 20,000,000.0						$ 240,500,000
Maximum royalty prior to amendment																						481,000,000.0
Cash flow model expected royalty sales term							9 years
Purchase of royalty right																						241,300,000
Royalty right purchase transaction costs																						$ 800,000
Depomed [Member] \| Royalty right [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				200,463,000			$ 218,672,000				200,463,000		218,672,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(18,209,000)
AcelRx [Member]
Purchase of royalty right																			$ 65,000,000.0
Percentage of royalty acquired																			75.00%
Payments for (Proceeds from) Productive Assets											0
Gain (Loss) on Disposition of Assets											0
Royalty Rights, Period To Give Notice To Terminate License Agreement	180 days
AcelRx [Member] \| Royalty right [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				0			12,952,000				0		12,952,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(12,952,000)
Kybella [Member]
Purchase of royalty right																		$ 9,500,000
Maximum amount of additional funds, upon attainment of milestones			$ 1,000,000.0
Payments for (Proceeds from) Productive Assets											(200,000)
Gain (Loss) on Disposition of Assets											0
Kybella [Member] \| Royalty right [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value				0			$ 584,000				0		$ 584,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales											(168,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings											(416,000)
Assertio \| Royalty right [Member]
Liquidation Basis of Accounting, Expected Cash Realizable Value, Royalty Asset												$ 204,500,000
Cerdelga \| Royalty right [Member]
Liquidation Basis of Accounting, Expected Cash Realizable Value, Royalty Asset												15,500,000
Alphaeon [Member]
Investment Owned, Balance, Shares \| shares							1.7						1.7
Investment estimated fair value, per share \| $ / shares							$ 3.84						$ 3.84
Investment Owned, at Fair Value				$ 1,000,000.0			$ 6,600,000				1,000,000.0		$ 6,600,000
Liquidating Basis of Accounting, Expected Cash Realizable Value, Assets												1,000,000.0
Noden [Member]
Impairment of Intangible Assets, Finite-lived													152,300,000
Intangible Assets, Gross (Excluding Goodwill)							$ 10,100,000					10,100,000	10,100,000		$ 32,600,000		$ 192,500,000
Intangible assets, net									$ 40,100,000
CareView [Member]
Asset Impairment Charges											0		$ 10,800,000	8,200,000
Minimum [Member] \| Depomed [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate							10.00%						10.00%
Maximum [Member] \| Depomed [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate							24.00%						24.00%
Discontinued Operations, Held-for-sale [Member]
Impairment of Intangible Assets, Finite-lived											0	$ 22,500,000	$ 22,490,000	152,330,000
Intangible assets, net							$ 10,112,000						10,112,000
Royalty rights - at fair value							$ 266,196,000						266,196,000
Revenues											20,675,000		24,051,000	166,083,000
Payments for (Proceeds from) Productive Assets											(35,129,000)
Increase (Decrease) in Assets Held-for-sale											$ (28,904,000)		$ 0	$ 0

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	$ 0	$ 0	$ (858)
Financial assets:
Warrants and Rights Outstanding		14,152
Royalty rights - at fair value		266,196
Assets, Fair Value		493,879
Financial liabilites:
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(4,350)
Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value		131,264
Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value		82,267
Royalty right [Member]
Financial liabilites:
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	$ (4,350)
Fair Value Level 1 [Member]
Financial assets:
Warrants and Rights Outstanding		0
Royalty rights - at fair value		0
Assets, Fair Value		213,531
Fair Value Level 1 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value		131,264
Fair Value Level 1 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value		82,267
Fair Value Level 2 [Member]
Financial assets:
Warrants and Rights Outstanding		14,152
Royalty rights - at fair value		0
Assets, Fair Value		14,152
Fair Value Level 2 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value		0
Fair Value Level 2 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value		0
Fair Value Level 3 [Member]
Financial assets:
Warrants and Rights Outstanding		0
Royalty rights - at fair value		266,196
Assets, Fair Value		266,196
Fair Value Level 3 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value		0
Fair Value Level 3 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value		$ 0

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Notes Receivable, Fair Value Disclosure	$ 700	$ 57,300
Assets, Fair Value Disclosure		493,879
Liabilities:
Notes Payable, Carrying Value		27,250
December 2021 Notes [Member]
Liabilities:
Notes Payable, Carrying Value		16,950
December 2024 Notes [Member]
Liabilities:
Notes Payable, Carrying Value		10,300
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value		50,191
Hyperion [Member]
Assets
Notes receivable, Carrying Value		1,200
CareView [Member]
Assets
Notes receivable, Carrying Value		690
Fair Value Level 2 [Member]
Assets
Assets, Fair Value Disclosure		14,152
Liabilities:
Notes payable, Fair Value		33,931
Fair Value Level 2 [Member] \| December 2021 Notes [Member]
Liabilities:
Notes payable, Fair Value		20,978
Fair Value Level 2 [Member] \| December 2024 Notes [Member]
Liabilities:
Notes payable, Fair Value		12,953
Fair Value Level 2 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure		0
Fair Value Level 2 [Member] \| Hyperion [Member]
Assets
Notes Receivable, Fair Value Disclosure		0
Fair Value Level 2 [Member] \| CareView [Member]
Assets
Notes Receivable, Fair Value Disclosure		0
Fair Value Level 3 [Member]
Assets
Notes Receivable, Fair Value Disclosure		57,279
Assets, Fair Value Disclosure		266,196
Liabilities:
Notes payable, Fair Value		0
Fair Value Level 3 [Member] \| December 2021 Notes [Member]
Liabilities:
Notes payable, Fair Value		0
Fair Value Level 3 [Member] \| December 2024 Notes [Member]
Liabilities:
Notes payable, Fair Value		0
Fair Value Level 3 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure		55,389
Fair Value Level 3 [Member] \| Hyperion [Member]
Assets
Notes Receivable, Fair Value Disclosure		1,200
Fair Value Level 3 [Member] \| CareView [Member]
Assets
Notes Receivable, Fair Value Disclosure		690
Assets [Member]
Assets
Assets, Fair Value Disclosure		52,081
Assets [Member] \| Fair Value Level 2 [Member]
Assets
Notes Receivable, Fair Value Disclosure		$ 0

Fair Value Measurements Fair Value Measurements (Schedule of Fair Value of Financial Instruments Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Aug. 31, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 217,913	$ 266,196
Change in fair value of acquired royalty rights, Level 3 Rollforward	$ (8,804)	(31,042)
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for Sale Securities, Fair Value		82,267
Fair Value Level 2 [Member] \| Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for Sale Securities, Fair Value		0
Fair Value Level 1 [Member] \| Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for Sale Securities, Fair Value		$ 82,267

Fair Value Measurements Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details)	8 Months Ended	12 Months Ended
	Aug. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 217,913,000	$ 266,196,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(4,350,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(43,933,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	0	0	$ (858,000)
Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	217,913,000	266,196,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(4,350,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(43,933,000)
Depomed [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	200,463,000	218,672,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(18,209,000)
VB [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0	13,590,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(4,182,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(9,408,000)
U-M \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	17,450,000	20,398,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(2,948,000)
AcelRx [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0	12,952,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(12,952,000)
Kybella [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0	584,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(168,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ (416,000)
6500 Real Estate \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		$ 16,000,000
Measurement Input, Discount Rate [Member] \| Minimum [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input		0.12
Measurement Input, Discount Rate [Member] \| Maximum [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input		0.15
Measurement Input, Discount Rate [Member] \| Intellectual Property [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		$ 21,000,000
Measurement Input, Discount Rate [Member] \| Other [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		$ 28,000,000
Estimated realtor fee [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input		0.06
Real estate appreciation [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input		0

Notes Receivable and Other Long-term Receivables (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Millions																	1 Months Ended		2 Months Ended	3 Months Ended						8 Months Ended	9 Months Ended		12 Months Ended			58 Months Ended
	Jul. 27, 2021	Dec. 11, 2020	Jan. 07, 2018	Sep. 21, 2017	Feb. 14, 2017	Feb. 09, 2017	Feb. 06, 2017	Dec. 30, 2016	Sep. 13, 2016	Jul. 16, 2016	Sep. 22, 2015	Jun. 26, 2015	Nov. 10, 2014	Apr. 01, 2014	Nov. 05, 2013	Aug. 15, 2013	Feb. 28, 2013	Jan. 31, 2013	Aug. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Aug. 31, 2020	Sep. 30, 2020	Sep. 30, 2017	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Apr. 30, 2018	Sep. 30, 2018	Feb. 28, 2018	Nov. 14, 2016	Sep. 29, 2016	Sep. 12, 2016	Jul. 15, 2016	Dec. 15, 2015	Oct. 07, 2015	Nov. 09, 2014	Nov. 06, 2013	Jun. 28, 2013	Nov. 02, 2012
Accounts Notes And Loans Receivable [Line Items]
Acquisition premium				1.00%
Gain Contingency, Unrecorded Amount																													$ 55,800,000
Accounts Receivable, after Allowance for Credit Loss, Noncurrent																																	$ 1,400,000
Maximum amount of additional funds, upon attainment of milestones			$ 2,000,000.0
Proceeds from Sale of Intangible Assets																										$ 0				$ 5,000,000	$ 0
Commitments and Contingencies
Class of Warrant or Right, Exercise Price of Warrants or Rights																													$ 6.38
Warrants and Rights Outstanding																						14,152,000								14,152,000
License and other																			$ 4,115,000	$ 5,211,000	$ 5,995,000	$ 8,521,000	$ 8,031,000	$ 7,458,000	$ 6,696,000	15,321,000				30,706,000	32,028,000
Equity investment, shares held (shares)																													4.4
Asset Impairment Charges																										0				$ 10,768,000	8,200,000
Proceeds from Legal Settlements																													$ 7,500,000
Settlement Agreement to Epps Investments LLC
Accounts Notes And Loans Receivable [Line Items]
Proceeds from Sale and Collection of Receivables																													51,400,000
Maximum [Member] \| Scenario, Plan [Member] \| Subsequent Event [Member]
Accounts Notes And Loans Receivable [Line Items]
Litigation Settlement, Amount (Deprecated 2017-01-31)	$ 67,500,000
Litigation Settlement Amount Awarded From Other Party if Payment Note Made In Full	$ 92,500,000
Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																												$ 53,900,000
Interest rate of note receivable (in Percent)																5.00%
Avinger [Member]
Accounts Notes And Loans Receivable [Line Items]
Repayment of notes receivable											$ 21,400,000
DirectFlow [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																			$ 1,000,000.0		$ 1,500,000	$ 1,500,000				$ 35,000,000.0
Warrant exercise price									$ 0.01	$ 0.01
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down								$ 51,100,000
Interest rate of note receivable (in Percent)																																									13.50%	15.50%
Amount company has agreed to advance under agreement													$ 15,000,000.0		$ 50,000,000.0
Class of Warrant or Right, Exercise Price of Warrants or Rights																																				$ 0.01
Proceeds from Sale of Other Assets					$ 692,000	$ 450,000	$ 7,000,000.0
kaleo Note Receivable [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross														$ 150,000,000.0
Repayment of notes receivable				$ 141,700,000
Alphaeon [Member]
Accounts Notes And Loans Receivable [Line Items]
Investment Owned, Balance, Shares																						1.7								1.7
Investment Owned, at Fair Value																			$ 1,000,000.0			$ 6,600,000				1,000,000.0				$ 6,600,000
CareView [Member]
Accounts Notes And Loans Receivable [Line Items]
Interest rate of note receivable (in Percent)												13.50%												15.50%
Amount company has agreed to advance under agreement												$ 40,000,000.0
Tranche 1 of note receivable												20,000,000.0
Tranche 2 of note receivable												$ 20,000,000.0
Class of Warrant or Right, Number of Securities Called by Warrants or Rights												4.4
Class of Warrant or Right, Exercise Price of Warrants or Rights												$ 0.45																						$ 0.03						$ 0.40
Expected Cash Realizable Value, Notes Receivable and Warrants																													$ 800,000
Epps \| Settlement Agreement to Epps Investments LLC
Accounts Notes And Loans Receivable [Line Items]
Collaboration Agreement, Percentage of Awards, Damages, Recoveries, and Judgments Receivable		100.00%
Credit Agreement [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																												$ 40,000,000.0
Credit agreement, stated interest rate (in Percent)																																												5.00%
Proceeds received under remedies available for borrower's breach of terms credit agreement																		$ 8,100,000
Amount company has agreed to advance under agreement																												$ 8,700,000
Financing Receivable, Troubled Debt Restructuring, Postmodification																$ 44,100,000
Forbearance number of days under terms of credit agreement (in Duration)																	120 days
Initial Loan [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Premodification																33,700,000
Additional Loan [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																											$ 1,300,000
Royalty Agreement [Member] \| Avinger [Member]
Accounts Notes And Loans Receivable [Line Items]
Reduction in royalty rate (in percent)																																50.00%
Term loan and interest [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Premodification																1,300,000
Forbearance principal and interest [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Premodification																$ 9,100,000
Tranche three [Member] \| DirectFlow [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																							$ 5,000,000.0
License and other [Member]
Accounts Notes And Loans Receivable [Line Items]
License and other																										$ 110,000				(45,000)	$ 533,000
Auvi-Q \| kaleo Note Receivable [Member]
Accounts Notes And Loans Receivable [Line Items]
Percentage of Net Sales, Collateral for Secured Note														20.00%
EVZIO \| kaleo Note Receivable [Member]
Accounts Notes And Loans Receivable [Line Items]
Percentage of Net Sales, Collateral for Secured Note														10.00%
DirectFlow [Member]
Accounts Notes And Loans Receivable [Line Items]
Proceeds from Sale of Intangible Assets																											$ 5,000,000.0			5,000,000.0
DirectFlow [Member] \| License and other [Member]
Accounts Notes And Loans Receivable [Line Items]
License and other			$ 500,000
Fair Value Level 2 [Member]
Accounts Notes And Loans Receivable [Line Items]
Warrants and Rights Outstanding																						$ 14,152,000								$ 14,152,000

Leases (Details) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Jan. 01, 2019
Maturities of operating lease receivables [Line Items]
Operating Lease, Weighted Average Remaining Lease Term		2 years	1 year 10 months 24 days
Operating Lease, Extension, Lease Term		6 months
Operating Lease, Right-of-Use Asset			$ 1,359			$ 2,100
Operating Lease, Liability		$ 75	1,394			$ 2,100
Medical devices [Member] \| Minimum [Member]
Maturities of operating lease receivables [Line Items]
Lessor, Operating Lease, Term of Contract					1 year
Medical devices [Member] \| Maximum [Member]
Maturities of operating lease receivables [Line Items]
Lessor, Operating Lease, Term of Contract					4 years
Discontinued Operations, Held-for-sale [Member]
Maturities of operating lease receivables [Line Items]
Operating Lease, Right-of-Use Asset			300
Operating Lease, Liability			300
Equipment Leased to Other Party [Member]
Maturities of operating lease receivables [Line Items]
Depreciation	$ 1,000		$ 2,100	$ 2,700

Leases Summary of Lease Expense Components, Supplemental Cash Flow Information and Other Information (Details) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Jan. 01, 2019
Leases [Abstract]
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year				$ 37
Operating Lease, Right-of-Use Asset		$ 1,359			$ 2,100
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]		us-gaap:LiabilitiesCurrentAbstract
Operating Lease, Payments	$ 522	$ 762
Operating Lease, Expense	532	760
Short-term Lease, Cost	49	79
Lease, Cost	581	839
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	3,320	2,055
Operating Lease, Liability, Current		$ 760
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]		us-gaap:LiabilitiesNoncurrentAbstract
Operating Lease, Liability, Noncurrent		$ 634
Operating Lease, Liability		$ 1,394		$ 75	$ 2,100
Operating Lease, Weighted Average Remaining Lease Term		1 year 10 months 24 days		2 years
Operating Lease, Weighted Average Discount Rate, Percent		6.50%
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two				$ 38
Lessee, Operating Lease, Liability, Payments, Due Year Three				0
Lessee, Operating Lease, Liability, Payments, Due Year Four				0
Lessee, Operating Lease, Liability, Payments, Due Year Five				0
Lessee, Operating Lease, Liability, Payments, Due after Year Five				0
Lessee, Operating Lease, Liability, Payments, Due				75
Lessee, Operating Lease, Liability, Undiscounted Excess Amount				$ 0
Operating Lease, Liability, Statement of Financial Position [Extensible List]				us-gaap:LiabilitiesAbstract	us-gaap:LiabilitiesAbstract
Operating Lease, Lease Income	$ 2,139	$ 5,072	$ 5,903

Leases Equipment Under Lease (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Property, Plant and Equipment, Net	$ 2,560
Property, Plant and Equipment, Gross	17,856
Equipment Leased to Other Party [Member]
Property Subject to or Available for Operating Lease [Line Items]
Property, Plant and Equipment, Net	1,421
Property, Plant and Equipment, Gross	6,652
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Property, Plant, and Equipment Other, Accumulated Depreciation	$ 5,231

Property and Equipment (Narrative) (Detail) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Net		$ 2,560
Discontinued Operations, Held-for-sale [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Net		2,960
Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,000	$ 2,700	$ 3,100

Property and Equipment (Property and Equipment) (Detail) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Leasehold Improvements, Gross		$ 350
Machinery and Equipment, Gross		1,550
Computer and office equipment		9,101
Furniture and Fixtures, Gross		136
Capital Leased Assets, Gross		6,652
Property, Plant and Equipment, Other, Gross		67
Property, Plant and Equipment, Gross		17,856
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment		(16,040)
Construction in Progress, Gross		744
Property, Plant and Equipment, Net		2,560
Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,000	$ 2,700	$ 3,100

Intangible Assets and Goodwill (Details) - USD ($)

3 Months Ended

8 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Aug. 31, 2020

Sep. 30, 2020

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Dec. 30, 2019

Jun. 30, 2019

Apr. 22, 2019

Jun. 27, 2018

Short-Duration Contract, Discounted Liability, Discount Rate

19.00%

21.00%

Proceeds from Sale of Intangible Assets

$ 0

$ 5,000,000

$ 0

Amortization of Intangible Assets

841,000

1,290,000

1,294,000

Finite-Lived Intangible Assets, Accumulated Amortization

16,115,000

(2,929,000)

Research and Development Expense

13,186,000

Intangible assets, net

13,186,000

$ 4,374,000

7,350,000

2,759,000

Customer Relationships [Member]

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

4,045,000

^[1]

(884,000)

Patented Technology [Member]

^[1]

3,161,000

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

11,500,000

^[1]

(1,741,000)

^[1]

9,759,000

Trademarks [Member]

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

570,000

^[1]

(304,000)

^[1]

266,000

Noden [Member]

Intangible Assets, Gross (Excluding Goodwill)

$ 10,100,000

10,100,000

$ 32,600,000

$ 192,500,000

Intangible assets, net

$ 40,100,000

Impairment of Intangible Assets, Finite-lived

152,300,000

LENSAR [Member]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

15 years

DirectFlow [Member]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

10 years

Proceeds from Sale of Intangible Assets

$ 5,000,000.0

5,000,000.0

Precision Eye Services [Member] | LENSAR [Member]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

20 years

third-party [Member] | LENSAR [Member]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

15 years

Research and Development Expense

$ 3,500,000

Cash paid [Member] | third-party [Member] | LENSAR [Member]

Milestone [Member] | third-party [Member] | LENSAR [Member]

$ 2,000,000.0

Operating Expense [Member]

$ 300,000

Quantifying Misstatement in Current Year Financial Statements, Amount

10,500,000

Assets [Member]

Quantifying Misstatement in Current Year Financial Statements, Amount

3,000,000.0

9,800,000

Discontinued Operations, Held-for-sale [Member]