Quarterly report pursuant to Section 13 or 15(d)

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

v3.22.1
SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES
3 Months Ended
Mar. 31, 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 March 31, 2022 and December 31, 2021 (in thousands):

 

 

March 31, 2022

 

 

December 31, 2021

 

Accounts payable:

 

 

 

 

 

 

 

 

Clinical and regulatory expenses

 

$

699

 

 

$

534

 

Professional fees

 

 

817

 

 

 

477

 

Selling expenses

 

 

671

 

 

 

932

 

Manufacturing costs

 

 

283

 

 

 

378

 

Board member compensation

 

 

283

 

 

 

136

 

Other vendors

 

 

120

 

 

 

262

 

Total accounts payable

 

 

2,873

 

 

 

2,719

 

Accrued interest payable, related parties

 

 

142

 

 

 

91

 

Accrued interest payable

 

 

618

 

 

 

579

 

Accrued expenses:

 

 

 

 

 

 

 

 

Payroll expenses

 

 

877

 

 

 

1,097

 

Government rebates and other rebates

 

 

4,461

 

 

 

4,371

 

Other accrued expenses

 

 

747

 

 

 

332

 

Total accrued expenses

 

 

6,085

 

 

 

5,800

 

Total accounts payable and accrued expenses

 

$

9,718

 

 

$

9,189

 

 

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

 

March 31, 2022

 

 

December 31, 2021

 

Trade discount

$

1,600

 

 

$

3,000

 

Other current liabilities

 

1,222

 

 

 

1,404

 

Total other current liabilities

$

2,822

 

 

$

4,404

 

 

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

 

 

March 31, 2022

 

 

December 31, 2021

 

Trade discount

$

21,480

 

 

$

23,148

 

Unearned revenue

 

10,000

 

 

 

10,000

 

Other long-term liabilities

 

27

 

 

 

25

 

Total other long-term liabilities

$

31,507

 

 

$

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 $200,000 and $2.0 million of PGLG from Telcon in the three months ended March 31, 2022, and March 31, 2021, respectively, of which $200,000 and $378,000 were reflected in accounts payable as of March 31, 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 our obligations. See Note 5 for information regarding a settlement in the three months ended March 31, 2022 of the target shortfall for 2020 and 2021.