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, 2021

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

NOTE 6 — SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

Accounts payable and accrued expenses consisted of the following at September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Accounts payable:
Clinical and regulatory expenses	$	443	$	262
Professional fees		552		252
Selling expenses		508		395
Manufacturing costs		253		596
Other vendors		66		518
Total accounts payable		1,822		2,023
Accrued interest payable, related parties		79		41
Accrued interest payable		418		627
Accrued expenses:
Payroll expenses		1,067		1,053
Government rebates and other rebates		2,553		2,659
Due to equity method investee		480		545
Other accrued expenses		554		512
Total accrued expenses		4,654		4,769
Total accounts payable and accrued expenses	$	6,973		7,460

Other current liabilities consisted of the following at September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Trade discount	$	4,000	$	2,000
Other current liabilities		940		706
Total other current liabilities	$	4,940	$	2,706

Other long-term liabilities consisted of the following at September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Trade discount	$	22,251	$	24,453
Unearned revenue		10,000		10,000
Other long-term liabilities		24		17
Total other long-term liabilities	$	32,275	$	34,470

On June 12, 2017, the Company and Telcon entered into an API Supply Agreement, as subsequently amended (so as amended, the “API agreement”), 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 estimated annual targets for bulk containers of PGLG. The Company purchased $250,000 and $2.0 million of PGLG from Telcon in the nine months ended September 30, 2021, and September 30, 2020, respectively. As of September 30, 2021, and December 31, 2020, respectively, accounts payable to Telcon were $250,000 and $208,000. See Note 11 for additional details.