Emmaus Life Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

9 Months Ended

Sep. 30, 2020

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

NOTE 6 — SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

Accounts payable and accrued expenses consisted of the following at September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020		December 31, 2019
Accounts payable:
Clinical and regulatory expenses	$	419	$	232
Professional fees		636		1,183
Selling expenses		654		1,303
Manufacturing costs		112		4,541
Other vendors		352		18
Total accounts payable		2,173		7,277
Accrued interest payable, related parties		47		42
Accrued interest payable		523		991
Accrued expenses:
Payroll expenses		1,024		891
Government rebates and other rebates		2,465		1,355
Due to EJ Holdings		474		238
Other accrued expenses		969		704
Total accrued expenses		4,932		3,188
Total accounts payable and accrued expenses	$	7,675	$	11,498

Other long-term liabilities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020		December 31, 2019
Trade discount	$	25,421	$	23,242
Unearned revenue		10,000		10,500
Other long-term liabilities		15		8
Total other long-term liabilities	$	35,436	$	33,750

On June 12, 2017, the Company entered into an API Supply Agreement, as subsequently amended (as so amended, the “API agreement”), with Telcon pursuant to which Telcon advanced to the Company approximately $31.8 million as an advance trade discount in consideration of the Company’s agreement to purchase from Telcon the Company’s requirements for bulk containers of PGLG. The Company purchased $2 million and $3.5 million of PGLG from Telcon in the nine months ended September 30, 2020 and September 30, 2019, respectively. As of September 30, 2020 and December 31, 2019, accounts payable to Telcon were zero and $ 3.3 million, respectively. See Note 11 for additional details.