Emmaus Life Sciences, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Selected Financial Statement - Liabilities

Selected Financial Statement - Liabilities

3 Months Ended

Mar. 31, 2026

Selected Financial Statement - Liabilities

NOTE 6 — SELECTED FINANCIAL STATEMENT - LIABILITIES

Accounts payable and accrued expenses consisted of the following at March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026		December 31, 2025
Accounts payable:
Clinical and regulatory expenses	$	441	$	565
Professional fees		844		927
Selling expenses		1,580		1,721
Manufacturing costs		1,724		1,466
Non-employee director compensation		1,006		1,018
Other vendors		215		282
Total accounts payable		5,810		5,979
Accrued interest payable, related parties		1,534		1,474
Accrued interest payable		6,905		5,841
Accrued expenses:
Payroll expenses		382		452
Government rebates and other rebates		9,294		8,538
Other accrued expenses		562		331
Total accrued expenses		10,238		9,321
Total accounts payable and accrued expenses	$	24,487	$	22,615

Other current liabilities consisted of the following at March 31, 2026 and December 31, 2025 (in thousands):


	As of March 31, 2026		As of December 31, 2025
Trade discount	$	3,200	$	3,190
Unearned revenue (a)		13,000		13,000
Other current liabilities		1,243		1,375
Total other current liabilities	$	17,443	$	17,565

(a) Refer to Note 3 for further information.

Other long-term liabilities consisted of the following at March 31, 2026 and December 31, 2025 (in thousands):


	As of March 31, 2026		As of December 31, 2025
Trade discount	$	12,361	$	12,239
Other long-term liabilities		57		53
Total other long-term liabilities	$	12,418	$	12,292

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 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 did not purchase PGLG from Telcon for three months ended March 31, 2026 and 2025. $1.1 million of accounts payable were included in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025. 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 of the target shortfall.