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

3 Months Ended

Mar. 31, 2020

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

NOTE 6 — SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

Accounts payable and accrued expenses consisted of the following at March 31, 2020 and December 31, 2019 (in thousands):

	March 31, 2020		December 31, 2019
Accounts payable:
Clinical and regulatory expenses	$	279	$	232
Professional fees		1,347		1,183
Selling expenses		1,068		1,303
Manufacturing costs		6,369		4,541
Other vendors		264		18
Total accounts payable		9,327		7,277
Accrued interest payable, related parties		173		42
Accrued interest payable		462		991
Accrued expenses:
Payroll expenses		868		891
Government rebates and other rebates		1,723		1,355
Due to EJ Holdings		347		238
Other accrued expenses		309		704
Total accrued expenses		3,247		3,188
Total accounts payable and accrued expenses	$	13,209		11,498

Other long-term liabilities consisted of the following at March 31, 2020 and December 31, 2019 (in thousands):


	March 31, 2020		December 31, 2019
Trade discount	$	26,422	$	23,242
Unearned revenue		10,536		10,500
Other long-term liabilities		10		8
Total other long-term liabilities	$	36,968	$	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 $2.0 million and $1.8 million of PGLG from Telcon in the three months ended March 31, 2020 and March 31, 2019, respectively. As of March 31, 2020, and December 31, 2019, respectively, accounts payable to Telcon were $5.8 million and $3.7 million. See Note 11 for additional details.