Quarterly report pursuant to Section 13 or 15(d)

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

v3.22.2.2
SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES
9 Months Ended
Sep. 30, 2022
Payables And Accruals [Abstract]  
SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

 


 

NOTE 6 — SELECTED FINANCIAL STATEMENT - LIABILITIES

Accounts payable and accrued expenses consisted of the following at September 30, 2022 and December 31, 2021 (in thousands):

 

 

September 30, 2022

 

 

December 31, 2021

 

Accounts payable:

 

 

 

 

 

 

 

 

Clinical and regulatory expenses

 

$

444

 

 

$

534

 

Professional fees

 

 

579

 

 

 

477

 

Selling expenses

 

 

1,138

 

 

 

932

 

Manufacturing costs

 

 

532

 

 

 

378

 

Non-employee board member compensation

 

 

401

 

 

 

136

 

Other vendors

 

 

313

 

 

 

262

 

Total accounts payable

 

 

3,407

 

 

 

2,719

 

Accrued interest payable, related parties

 

 

325

 

 

 

91

 

Accrued interest payable

 

 

1,673

 

 

 

579

 

Accrued expenses:

 

 

 

 

 

 

 

 

Payroll expenses

 

 

1,196

 

 

 

1,097

 

Government rebates and other rebates

 

 

4,157

 

 

 

4,371

 

Other accrued expenses

 

 

376

 

 

 

332

 

Total accrued expenses

 

 

5,729

 

 

 

5,800

 

Total accounts payable and accrued expenses

 

$

11,134

 

 

 

9,189

 

 

Other current liabilities consisted of the following at September 30, 2022 and December 31, 2021 (in thousands):

 

September 30, 2022

 

 

December 31, 2021

 

Trade discount

$

1,200

 

 

$

3,000

 

Other current liabilities

 

1,070

 

 

 

1,404

 

Total other current liabilities

$

2,270

 

 

$

4,404

 

 

Other long-term liabilities consisted of the following at September 30, 2022 and December 31, 2021 (in thousands):

 

 

September 30, 2022

 

 

December 31, 2021

 

Trade discount

$

22,095

 

 

$

23,148

 

Unearned revenue

 

10,000

 

 

 

10,000

 

Other long-term liabilities

 

27

 

 

 

25

 

Total other long-term liabilities

$

32,122

 

 

$

33,173

 

 

 On June 12, 2017, the Company entered into an API Supply 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 estimated annual target requirements for bulk containers of PGLG. On July 12, 2017, the Company entered into a raw material supply agreement with Telcon which revised certain items of the API Supply Agreement (the “revised API Agreement”). The Company purchased $523,000 of PGLG from Telcon in the nine months ended September 30, 2022 and purchased $250,000 of PGLG in the nine months ended September 30, 2021 of which $537,000 and $382,000 were reflected in accounts payable as of September 30, 2022 and December 31, 2021, respectively. The revised API Agreement provided for an annual API purchase target of $5 million and a target “profit” (i.e., gross margin) to Telcon of $2.5 million. To the extent these targets are not met, which management refers to as a “target shortfall,” Telcon may be entitled to payment of the target shortfall or to settle the target shortfall by exchange of principal and interest on the Telcon convertible bond and proceeds thereof that are pledged as a collateral to secure the Company’s obligations under the API Supply Agreement and the revised API Agreement. See Note 5 for information regarding the settlement in the nine months ended September 30, 2022 of the target shortfall for 2021 and 2020.