Emmaus Life Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

12 Months Ended

Dec. 31, 2019

Payables And Accruals [Abstract]

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

NOTE 7—SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

Accounts payable and accrued expenses consisted of the following (in thousands):

	December 31, 2019		December 31, 2018 (As Restated)
Accounts payable:
Clinical and regulatory expenses	$	232	$	83
Professional fees		1,183		2,157
Selling expenses		1,303		382
Manufacturing cost		4,541		—
Other vendors		18		844
Total accounts payable		7,277		3,466
Accrued interest payable, related parties		42		842
Accrued interest payable		991		2,138
Accrued expenses:
Payroll expenses		891		713
Government rebates and other rebates		1,355		933
Due to EJ Holdings		238		57
Other accrued expenses		704		86
Total accrued expenses		3,188		1,789
Total accounts payable and accrued expenses	$	11,498	$	8,235

Other long-term liabilities consisted of the following (in thousands):

	As of December 31,
	2019		2018
Trade discount	$	23,242	$	26,222
Unearned revenue		10,500		10,000
Other long-term liabilities		8		—
Total other long-term liabilities	$	33,750	$	36,222

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 pharmaceutical grade L-glutamine (“PGLG”). The Company purchased $4.5 million and $1.0 million of PGLG from Telcon during years ended December 31, 2019, and 2018, respectively, of which $3.7 million and zero were reflected in accounts payable as of December 31, 2019 and 2018, respectively. See Note 12 for additional details.