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, 2020

Payables And Accruals [Abstract]

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

NOTE 6—SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

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

	December 31, 2020		December 31, 2019
Accounts payable:
Clinical and regulatory expenses	$	262	$	232
Professional fees		252		1,183
Selling expenses		395		1,303
Manufacturing cost		596		4,541
Other vendors		518		18
Total accounts payable		2,023		7,277
Accrued interest payable, related parties		41		42
Accrued interest payable		627		991
Accrued expenses:
Payroll expenses		1,053		891
Government rebates and other rebates		2,659		1,355
Due to EJ Holdings		545		238
Other accrued expenses		512		704
Total accrued expenses		4,769		3,188
Total accounts payable and accrued expenses	$	7,460	$	11,498

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

	As of December 31,
	2020		2019
Trade discount	$	24,453	$	23,242
Unearned revenue		10,000		10,500
Other long-term liabilities		17		8
Total other long-term liabilities	$	34,470	$	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 $2.2 million and $4.5 million of PGLG from Telcon during years ended December 31, 2020, and 2019, respectively, of which $208,000 and $3.7 million were reflected in accounts payable as of December 31, 2020 and 2019, respectively. See Note 11 for additional details.