Washington, D.C. 20549
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

August 9, 2022 (August 9, 2022)
Date of Report (date of earliest event reported)

(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
2525 West End Avenue, Suite 950 Nashville, Tennessee 37203
(Address of Principal Executive Offices)
(615) 255-0068
Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueCPIXNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

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

Item 2.02     Results of Operations and Financial Condition.

On May 10, 2022, Cumberland Pharmaceuticals Inc. (the "Company") issued a press release which provided a company update and the financial results for the three months ended March 31, 2022. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02.
This information is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, unless specifically incorporated by reference in a document filed under the Securities Act of 1933, as amended, or the Exchange Act. By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by Item 2.02.
Item 9.01    Financial Statements and Exhibits
    (d) Exhibits
Exhibit No. Description

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  Cumberland Pharmaceuticals Inc.
Dated: August 9, 2022
  By:/s/ John Hamm
  John Hamm
  Chief Financial Officer



Cumberland Pharmaceuticals Reports 14% Revenue Growth
Expanding portfolio of FDA approved brands driving double digit growth
NASHVILLE, TENNESSEE (Tuesday, August 9, 2022) - Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company today announced that its product portfolio of FDA-approved brands delivered combined revenues of $10.3 million during the second quarter of 2022, - a 14% increase over the prior year period. Cumberland also reports a 10% increase in net revenues for the first half of the year compared to the same period in 2021.
Year-to-date cash flow from operations were $2.2 million. The Company's financial position included $93 million in total assets, $53 million in total liabilities, and $40 million of shareholders’ equity at the end of the quarter.
“We have had a strong first half of the year, especially following our exciting and significant acquisition of the oncology-supportive care medicine Sancuso,” said A.J. Kazimi, CEO of Cumberland Pharmaceuticals. “We look forward to building on this success throughout the remainder of the year, as we continue to fulfill our mission of providing innovative products to improve the quality of care for patients.”
Cumberland will report its full second quarter 2022 financial results and provide a company update via a conference call today at 4:30 p.m. Eastern Time.
Earnings Call Participation
To join, please register at https://register.vevent.com/register/BIcc5e9791aa7343d9927dca16dc4cf493. Once registered, participants can dial in from their phone using a dial-in and PIN number that will be provided. Alternatively, there is a “Call Me” option to have the system automatically call them at the start of the conference. A replay of the call will be available for one year and can be accessed via Cumberland’s website or by visiting https://edge.media-server.com/mmc/p/3qe9g6y5.

Among the updates the company will share during today’s conference call are:
Sancuso® Promotion
Following its January 2022 acquisition of oncology-supportive care medicine Sancuso, Cumberland entered into an agreement with Verity Pharmaceuticals International Limited for the national co-promotion of the product. A specialty pharmaceutical company, Verity will utilize its established oncology commercial organization and customer network to co-promote Sancuso throughout the United States. Verity launched its national co-promotion efforts in July 2022.

2021 Sustainability Report
In early August 2022, Cumberland announced the results of its 2021 Sustainability Report, outlining the company’s activities pertaining to environmental, social and governance matters.
Highlights from the report include:
Cumberland provided 2.43 million doses of its products for patients in 2021.
Cumberland also safely disposed of over 6,200 pounds of expired or damaged products in 2021.
During 2021, Cumberland had:
*no products recalled,
*no company brands listed on FDA’s MedWatch Safety Alerts for Human Medical Products,
*no company product issues identified by FDA from their Adverse Event Reporting System,
*no clinical trials terminated due to failure to practice good clinical standards.
The 2021 Sustainability Report also highlights Cumberland’s investment in its employees through its continuing education programs, employee development initiatives and employee recognition awards. Cumberland’s workforce is 44% women, and 15% of its employees are minorities.
New Board Member
In July 2022, Cumberland welcomed Martin Brown Jr. to its board of directors. Brown’s experience includes 10 years on the board of directors of Brown-Forman Corporation, a large American spirits and wine company whose shares are listed on the New York Stock Exchange. Additionally, he has served since 2018 on the board of directors of the parent company of Aegis Sciences Corporation, a federally certified health care laboratory headquartered in Nashville.
Brown is an attorney at Adams and Reese LLP. He has nearly 30 years of legal experience representing privately held businesses, counseling owners in complex business transactions, intellectual property licensing, international commerce, mergers and acquisitions, and estate planning. He has been listed since 2009 in the corporate law category of Best Lawyers®.
Additionally, Brown has been an active board member for many community organizations, including the Land Trust for Tennessee, Nashville Public Radio, Montgomery Bell Academy, Nashville Public Television, Centerstone Mental Health Center, Cheekwood Estate and Gardens, and Tennessee chapter of the Nature Conservancy.
RediTrex® Arrangements with Nordic Pharma
On July 12, 2022, Cumberland and Nordic Pharma entered into an amendment to their agreement, addressing the responsibilities and financial arrangements regarding Cumberland’s license to Nordic’s methotrexate line of products for the U.S., which is marketed under the brand name RediTrex.
Based on the amendment, Cumberland has provided Nordic the opportunity to assume responsibility for commercializing the methotrexate products in the U.S. after March 31, 2023. Until then, Cumberland will continue to distribute and support the RediTrex product line. Following the return of the license, Nordic will provide Cumberland with a royalty on their future sales of the product through April 2035. The two companies will continue to collaborate on any transition and ongoing commercialization of the product line.

Ifetroban Clinical Studies
Cumberland is currently sponsoring three Phase II clinical programs to evaluate its ifetroban product candidate in 1) Aspirin-Exacerbated Respiratory Disease (AERD), a severe form of asthma; 2) Systemic Sclerosis or scleroderma, a debilitating autoimmune disorder characterized by diffuse fibrosis of the skin and internal organs; and 3) patients with cardiomyopathy associated with Duchenne Muscular Dystrophy, a genetic neuromuscular disease that results in deterioration of the skeletal, heart and lung muscles. Cumberland is awaiting results from the studies underway before deciding on the best development path for the registration of ifetroban.
The company is also designing a fourth Phase II program to evaluate the use of ifetroban to treat patients with Progressive Fibrosing Interstitial Lung Diseases and is currently preparing an application to the FDA to support the new program.
In addition to these Cumberland-sponsored studies, Harvard clinical investigators have led a Phase II trial in patients with AERD. Their study is designed to understand the mechanism of ifetroban in those patients and therefore complements the work Cumberland has underway. Their work has been supported by a $5 million grant from the NIH. Patient enrollment in the study is now closed, and the data analysis is underway.
New Ifetroban Publication
In June 2022, the American Journal of Respiratory and Critical Care Medicine published preclinical studies that support the use of ifetroban as a promising therapeutic for patients with pulmonary fibrosis associated with lung disease.
Specifically, the researchers reported that ifetroban was used to block thromboxane receptor signaling in three preclinical models of lung fibrosis: bleomycin-induced lung fibrosis, Hermansky-Pudlak Syndrome mice and radiation-induced lung fibrosis. Ifetroban reduced pro-fibrotic signaling in the lungs and prevented lung fibrosis due to multiple causes (bleomycin, genetic and radiation).

Net Revenue: For the three months ended June 30, 2022, net revenues from continuing operations were $10.3 million.
Net revenue by product for the second quarter of 2022, included $3.6 million for Kristalose®, $3.4 million for Sancuso®, $1.6 million for Vibativ® and $1.2 million for Caldolor®.
Year-to-date 2022 net revenues were $21.5 million, compared to $19.6 million for the prior year period.
Year-to-date net revenues by product were $7.5 million for Kristalose, $6.8 million for Sancuso, $4.1 million for Vibativ and $2.2 million for Caldolor.
Operating Expenses: Total operating expenses for the second quarter were $12.1 million, compared to $10.5 million for the prior year period.
Year-to-date 2022 operating expenses were $24.6 million, compared to $21.4 million for 2021.
Adjusted Earnings: Adjusted earnings for the second quarter of 2022 were $(0.3) million, or $(0.01) per share.

The adjusted earnings calculation does not include the benefit of the $0.3 million of Vibativ cost of goods, which were received with the product acquisition. It also does not include the benefit of the $0.4 million of Sancuso cost of goods, which were received with that product’s acquisition.
Cash Flow: Year-to-date cash flow from operations was $2.2 million.
Balance Sheet: At June 30, 2022, Cumberland had $93 million in total assets including $18 million in cash and cash equivalents. Total liabilities were $53 million, including $19 million outstanding on the Company's revolving line of credit. Total shareholders' equity was $40 million.

Cumberland Pharmaceuticals Inc. is the largest biopharmaceutical company founded and headquartered in the Mid-South and is focused on the delivery of high-quality, prescription brands designed to improve patient care. The company develops, acquires, and commercializes products for the hospital acute care, gastroenterology, rheumatology and oncology market segments.
The Company’s portfolio of FDA-approved brands includes:
Acetadote® (acetylcysteine) injection, for the treatment of acetaminophen poisoning;
Caldolor® (ibuprofen) injection, for the treatment of pain and fever;
Kristalose® (lactulose) oral, a prescription laxative, for the treatment of constipation;
Omeclamox®-Pak, (omeprazole, clarithromycin, amoxicillin) oral, for the treatment of Helicobacter pylori (H. pylori) infection and related duodenal ulcer disease;
RediTrex® (methotrexate) injection, for the treatment of active rheumatoid, juvenile idiopathic and severe psoriatic arthritis, as well as disabling psoriasis;
Sancuso® (granisetron) transdermal, for the prevention of nausea and vomiting in patients receiving certain types of chemotherapy treatment;
Vaprisol® (conivaptan) injection, to raise serum sodium levels in hospitalized patients with euvolemic and hypervolemic hyponatremia; and
Vibativ® (telavancin) injection, for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections;
The Company also has a series of Phase II clinical programs underway evaluating its ifetroban product candidate in patients with cardiomyopathy associated with Duchenne Muscular Dystrophy, Systemic Sclerosis, and Aspirin-Exacerbated Respiratory Disease.
For more information on Cumberland’s approved products, including full prescribing information, please visit links to the individual product websites, which can be found on the Company’s website www.cumberlandpharma.com.

About Acetadote® (acetylcysteine) Injection
Acetadote, administered intravenously within 8 to 10 hours after ingestion of a potentially hepatotoxic quantity of acetaminophen, is indicated to prevent or lessen hepatic injury. Used in the emergency department, Acetadote is approved in the United States to treat overdose of acetaminophen, a common ingredient in many over-the-counter medications. Acetadote is contraindicated in patients with hypersensitivity or previous anaphylactoid reactions to acetylcysteine or any components of the preparation. For full prescribing and safety information, visit www.acetadote.com.
About Caldolor® (ibuprofen) Injection
Caldolor is indicated in adults and pediatric patients for the management of mild to moderate pain and management of moderate to severe pain as an adjunct to opioid analgesics, as well as the reduction of fever. It was the first FDA-approved intravenous therapy for fever. Caldolor is contraindicated in patients with known hypersensitivity to ibuprofen or other NSAIDs, patients with a history of asthma or other allergic type reactions after taking aspirin or other NSAIDs. Caldolor is contraindicated for use during the peri-operative period in the setting of coronary artery bypass graft (CABG) surgery. For full prescribing and safety information, including boxed warning, visit www.caldolor.com.
About Kristalose® (lactulose) Oral Solution
Kristalose is indicated for the treatment of acute and chronic constipation. It is a unique, proprietary, crystalline form of lactulose, with no restrictions on length of therapy or patient age. Kristalose is contraindicated in patients who require a low-galactose diet. Elderly, debilitated patients who receive lactulose for more than six months should have serum electrolytes (potassium, chloride, carbon dioxide) measured periodically. For full prescribing and safety information, visit www.kristalose.com
About Omeclamox®-Pak (omeprazole, clarithromycin, amoxicillin)
Omeprazole is an antisecretory drug, which works by decreasing the amount of acid the stomach produces. Clarithromycin and amoxicillin are antibacterial drugs, which inhibit the growth of bacteria allowing the stomach lining to heal. Omeclamox-Pak is contraindicated in patients with a history of hypersensitivity to omeprazole, any macrolide antibiotic or penicillin. For full prescribing and safety information, visit www.omeclamox.com.
About RediTrex® (methotrexate) Injection
RediTrex is a single-dose prefilled syringe containing prescription methotrexate. RediTrex is used to treat adults with severe, active rheumatoid arthritis and children with active polyarticular juvenile idiopathic arthritis, after treatment with other medicines including non-steroidal anti-inflammatory drugs (NSAIDS) have been used and did not work well. Methotrexate can control the symptoms of severe, resistant, disabling psoriasis in adults when other types of treatment have failed. For full prescribing and safety information, visit www.reditrex.com
About Sancuso® (granisetron) Transdermal System
Sancuso is the only skin patch approved by the U.S. Food and Drug Administration for the prevention of chemotherapy-induced nausea and vomiting (CINV) in patients receiving moderately and/or highly emetogenic chemotherapy. When applied 24 to 48 hours before receiving chemotherapy, the SANCUSO patch slowly and continuously releases the medicine contained in the adhesive through clean and intact skin areas into the patient’s bloodstream. It can be worn for up to seven days in a row for chemotherapy regimens of up to five consecutive days. For full prescribing and safety information, visit www.sancuso.com.

About Vaprisol® (conivaptan hydrochloride) Injection
Vaprisol is an intravenous treatment for hyponatremia used in the critical care setting. Hyponatremia is an electrolyte disturbance in which sodium ion concentration in blood plasma is lower than normal. This can be associated with a variety of critical care conditions including congestive heart failure, liver failure, kidney failure and pneumonia. The product is a vasopressin receptor antagonist that raises serum sodium levels and promotes free water secretion. Vaprisol is contraindicated in patients with hypovolemic hyponatremia. The coadministration of Vaprisol with potent CYP3A inhibitors, such as ketoconazole, itraconazole, clarithromycin, ritonavir, and indinavir, is contraindicated. For full prescribing and safety information, including boxed warning, visit www.vaprisol.com.
About Vibativ® (telavancin) for Injection
Vibativ is a patented, FDA approved injectable anti-infective for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia and complicated skin and skin structure infections. It addresses a range of Gram-positive bacterial pathogens, including those that are considered difficult-to-treat and multidrug-resistant. Intravenous unfractionated heparin sodium is contraindicated with Vibativ administration due to artificially prolonged activated partial thromboplastin time (aPTT) test results for up to 18 hours after Vibativ administration. Vibativ is contraindicated in patients with a known hypersensitivity to telavancin. For more information please visit www.vibativ.com.
About Cumberland Emerging Technologies (CET)
Cumberland Emerging Technologies, Inc. (www.cet-fund.com) is a joint initiative between Cumberland Pharmaceuticals Inc., Vanderbilt University, LaunchTN, and WinHealth. The mission of CET is to advance biomedical technologies and products conceived at Vanderbilt University and other regional research centers towards the marketplace.
CET helps manage the development and commercialization process for select projects, and provides expertise on intellectual property, regulatory, manufacturing and marketing issues that are critical to successful new biomedical products. CET's Life Sciences Center provides laboratory space, equipment and infrastructure for CET’s activities and other early-stage life sciences ventures.

This press release contains forward-looking statements, which are subject to certain risks and reflect Cumberland’s current views on future events based on what it believes are reasonable assumptions. No assurance can be given that these events will occur. Forward-looking statements include, among other things, statements regarding the company’s intent, belief or expectations, and can be identified by the use of terminology such as “may,” “will,” “expect,” “believe,” “intend,” “plan,” “estimate,” “should,” “seek,” “anticipate” and other comparable terms or the negative thereof. As with any business, all phases of Cumberland’s operations are subject to factors outside of its control, and any one or combination of these factors could materially affect Cumberland’s operation results. These factors include market conditions, competition, an inability of manufacturers to produce Cumberland’s products on a timely basis, failure of manufacturers to comply with regulations applicable to pharmaceutical manufacturers, natural disasters, public health epidemics, maintaining an effective sales and marketing infrastructure, and other events beyond the company’s control as more fully discussed in its most recent 10-Q as filed with the SEC. There can be no assurance that results anticipated by the company will be realized or that they will have the expected effects. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The company does not undertake any obligation to publicly revise these statements to reflect events after the date hereof.
SOURCE: Cumberland Pharmaceuticals Inc.

Investor Contact:Media Contact:
Shayla SimpsonMolly Aggas
Cumberland Pharmaceuticals Inc.Dalton Agency
(615) 255-0068(704) 641-6641

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Condensed Consolidated Balance Sheets
June 30, 2022December 31, 2021
Current assets:
Cash and cash equivalents$18,216,565 $27,040,816 
Accounts receivable, net13,276,009 6,877,346 
Inventories9,420,459 8,429,882 
Prepaid and other current assets2,835,465 3,339,969 
Total current assets43,748,498 45,688,013 
Non-current inventories10,374,054 9,048,567 
Property and equipment, net457,490 442,635 
Intangible assets, net32,975,117 23,954,475 
Goodwill1,932,876 882,000 
Operating lease right-of-use assets493,102 1,024,200 
Other assets2,536,500 3,419,908 
Total assets$92,517,637 $84,459,798 
Current liabilities:
Accounts payable$10,591,585 $9,640,980 
Operating lease current liabilities512,324 969,677 
Other current liabilities13,148,060 8,668,303 
Total current liabilities24,251,969 19,278,960 
Revolving line of credit19,000,000 15,000,000 
Operating lease noncurrent liabilities— 90,016 
Other long-term liabilities10,061,376 7,488,844 
Total liabilities53,313,345 41,857,820 
Commitments and contingencies
Shareholders’ equity:
Common stock—no par value; 100,000,000 shares authorized; 14,649,693 and 14,742,754 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
47,822,319 48,452,906 
Retained earnings (deficit)(8,359,473)(5,638,600)
Total shareholders’ equity39,462,846 42,814,306 
Noncontrolling interests(258,554)(212,328)
Total equity39,204,292 42,601,978 
Total liabilities and equity$92,517,637 $84,459,798 

Condensed Consolidated Statements of Operations
 Three months ended June 30,Six months ended June 30,
Net revenues$10,299,152 $9,055,483 $21,474,197 $19,592,642 
Costs and expenses:
Cost of products sold2,031,884 1,740,649 4,243,769 4,157,978 
Selling and marketing4,556,685 4,121,817 9,171,114 7,909,157 
Research and development1,823,693 1,360,398 3,568,829 2,617,765 
General and administrative2,203,975 2,097,130 4,506,324 4,327,639 
Amortization1,529,453 1,171,218 3,122,698 2,340,132 
Total costs and expenses12,145,690 10,491,212 24,612,734 21,352,671 
Operating income (loss)(1,846,538)(1,435,729)(3,138,537)(1,760,029)
Interest income15,066 6,591 31,107 12,017 
Other income— 2,187,140 — 2,187,140 
Other income - gain on insurance proceeds611,330 — 611,330 — 
Interest expense(137,624)(25,859)(257,199)(50,276)
Income (loss) from continuing operations before income taxes(1,357,766)732,143 (2,753,299)388,852 
Income tax (expense) benefit(6,900)(7,459)(13,800)(14,917)
Net income (loss) from continuing operations(1,364,666)724,684 (2,767,099)373,935 
Discontinued operations— 498,807 — 994,217 
Net income (loss)(1,364,666)1,223,491 (2,767,099)1,368,152 
Net (income) loss at subsidiary attributable to noncontrolling interests29,046 5,069 46,226 27,236 
Net loss attributable to common shareholders$(1,335,620)$1,228,560 $(2,720,873)$1,395,388 
Earnings (loss) per share attributable to common shareholders
- Continuing operations - basic$(0.09)$0.05 $(0.19)$0.02 
- Discontinued operations - basic— 0.03 — 0.07 
$(0.09)$0.08 $(0.19)$0.09 
- Continuing operations - diluted$(0.09)$0.05 $(0.19)$0.02 
- Discontinued operations - diluted— 0.03 — 0.07 
$(0.09)$0.08 $(0.19)$0.09 
Weighted-average shares outstanding
- basic14,688,505 14,976,064 14,689,798 14,970,241 
- diluted14,688,505 15,109,246 14,689,798 15,171,589 

Condensed Consolidated Statements of Cash Flows
 Six months ended June 30,
Cash flows from operating activities:
Net income (loss)$(2,767,099)$1,368,152 
Discontinued operations— 994,217 
Net income(loss) from continuing operations(2,767,099)373,935 
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization expense3,272,085 2,455,576 
Share-based compensation132,148 354,914 
Decrease in non-cash contingent consideration(68,334)(180,110)
Decrease (increase) in cash surrender value of life insurance policies over premiums paid598,355 (226,897)
Gain on receivable of life insurance policy proceeds(611,330)— 
Noncash interest expense4,791 27,666 
Gain on forgiveness of debt— (2,187,140)
Net changes in assets and liabilities affecting operating activities:
Accounts receivable(5,527,690)3,230,220 
Inventories2,949,443 2,309,914 
Other current assets and other assets1,227,030 866,987 
Accounts payable and other current liabilities4,658,782 (3,008,323)
Other long-term liabilities(1,688,143)(526,189)
Net cash provided by (used in) operating activities from continuing operations2,180,038 3,490,553 
Discontinued operations— 994,217 
Net cash provided by (used in) operating activities2,180,038 4,484,770 
Cash flows from investing activities:
Additions to property and equipment(164,241)(34,531)
Note receivable investment funding— (200,000)
Cash paid for acquisitions(13,500,000)— 
Additions to intangibles(50,248)(132,323)
Net cash (used in) investing activities(13,714,489)(366,854)
Cash flows from financing activities:
Borrowings on line of credit39,000,000 29,000,000 
Repayments on line of credit(35,000,000)(30,000,000)
Cash payment of contingent consideration(501,505)(1,423,586)
Repurchase of common shares(788,295)(777,664)
Net cash provided by (used in) financing activities2,710,200 (3,201,250)
Net increase (decrease) in cash and cash equivalents(8,824,251)916,666 
Cash and cash equivalents at beginning of period$27,040,816 $24,753,796 
Cash and cash equivalents at end of period$18,216,565 $25,670,462 

Reconciliation of Net Income (loss) Attributable to Common Shareholders to Adjusted Earnings (loss) and Adjusted Diluted Earnings (loss) Per Share
Three months ended June 30,Three months ended June 30,
Earnings impactEarnings per share impactEarnings impactEarnings per share impact
Net income (loss) attributable to common shareholders$(1,335,620)$(0.09)$1,228,560 $0.08 
Less: Net (income) loss at subsidiary attributable to noncontrolling interests29,046 — 5,069 — 
Net income (loss)(1,364,666)(0.09)1,223,491 0.08 
Discontinued operations— — 498,807 0.03 
Net income (loss) from continuing operations(1,364,666)(0.09)724,684 0.05 
Adjustments to net income (loss) from continuing operations
Income tax expense (benefit)6,900 — 7,459 — 
Depreciation and amortization1,618,339 0.11 1,227,969 0.08 
Share-based compensation (a)
(27,753)— 191,954 0.01 
Gain on forgiveness of debt (b)
— — (2,187,140)(0.15)
Gain on insurance proceeds (c)
(611,330)(0.04)— — 
Other income(15,066)— (6,591)— 
Interest expense137,624 0.01 25,859 — 
Adjusted Earnings (loss) from continuing operations and Adjusted Diluted Earnings (loss) from continuing operations Per Share$(255,952)$(0.01)$(15,806)$— 
Diluted weighted-average common shares outstanding:14,688,505 14,976,034 

Six months ended June 30,Six months ended June 30,
Earnings impactEarnings per share impactEarnings impactEarnings per share impact
Net income (loss) attributable to common shareholders$(2,720,873)$(0.18)$1,395,388 $0.09 
Less: Net (income) loss at subsidiary attributable to noncontrolling interests46,226 — 27,236 — 
Net income (loss)(2,767,099)(0.19)1,368,152 0.09 
Discontinued operations— — 994,217 0.07 
Net income (loss) from continuing operations(2,767,099)(0.19)373,935 0.03 
Adjustments to net income (loss) from continuing operations
Income tax expense (benefit)13,800 — 14,917 — 
Depreciation and amortization3,272,085 0.22 2,455,576 0.16 
Share-based compensation (a)
132,148 0.01 354,914 0.02 
Gain on forgiveness of debt (b)
— — (2,187,140)(0.14)
Gain on insurance proceeds (c)
(611,330)(0.04)— — 
Other income(31,107)— (12,017)— 
Interest expense257,199 0.02 50,276 — 
Adjusted Earnings (loss) from continuing operations and Adjusted Diluted Earnings (loss) from continuing operations Per Share$265,696 $0.02 $1,050,461 $0.07 
Diluted weighted-average common shares outstanding:14,948,836 15,171,589 

The Company provided the above adjusted supplemental financial performance measures, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. These financial measures should be considered supplemental to, and not as a substitute for, financial information prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). The definition of these supplemental measures may differ from similarly titled measures used by others.
Because these supplemental financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. A reconciliation of the supplemental financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release.

Cumberland's management believes these supplemental financial performance measures are important as they are used by management, along with financial measures in accordance with GAAP, to evaluate the Company's operating performance. In addition, Cumberland believes that they will be used by certain investors to measure the Company's operating results. Management believes that presenting these supplemental measures provides useful information about the Company's underlying performance across reporting periods on a consistent basis by excluding items that Cumberland does not believe are indicative of its core business performance or reflect long-term strategic activities. Certain of these items are not settled through cash payments and include: depreciation, amortization, share-based compensation expense and income taxes. Cumberland utilizes its net operating loss carryforwards to pay minimal income taxes. In addition, the use of these financial measures provides greater transparency to investors of supplemental information used by management in its financial and operational decision-making, including the evaluation of the Company's operating performance.

The Company defines these supplemental financial measures as follows:
Adjusted Earnings (loss): net income (loss) adjusted for the impact of discontinued operations, income taxes, depreciation and amortization expense, share-based compensation, nonrecurring gains and interest income and interest expense.

    (a) Represents the share-based compensation of Cumberland.
(b) Represents the forgiveness of the PPP Loan by the Small Business Administration.
(c) Represents the gain in insurance proceeds.
Adjusted Diluted Earnings (loss) Per Share: Adjusted Earnings (loss) divided by diluted weighted-average common shares outstanding.