Quarterly report pursuant to Section 13 or 15(d)

SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES

v3.23.2
SELECTED FINANCIAL STATEMENT CAPTIONS - LIABILITIES
6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022 (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Accounts payable:

 

 

 

 

 

 

Clinical and regulatory expenses

 

$

499

 

 

$

361

 

Professional fees

 

 

618

 

 

 

626

 

Selling expenses

 

 

1,210

 

 

 

1,363

 

Manufacturing costs

 

 

364

 

 

 

650

 

Non-employee director compensation

 

 

620

 

 

 

484

 

Other vendors

 

 

130

 

 

 

301

 

Total accounts payable

 

 

3,441

 

 

 

3,785

 

Accrued interest payable, related parties

 

 

525

 

 

 

144

 

Accrued interest payable

 

 

2,278

 

 

 

2,381

 

Accrued expenses:

 

 

 

 

 

 

Payroll expenses

 

 

1,868

 

 

 

1,263

 

Government rebates and other rebates

 

 

5,341

 

 

 

5,536

 

Due to customers

 

 

844

 

 

 

 

Other accrued expenses

 

 

903

 

 

 

440

 

Total accrued expenses

 

 

8,956

 

 

 

7,239

 

Total accounts payable and accrued expenses

 

$

15,200

 

 

 

13,549

 

 

Other current liabilities consisted of the following at June 30, 2023 and December 31, 2022 (in thousands):

 

June 30, 2023

 

 

December 31, 2022

 

Trade discount

$

2,600

 

 

$

1,200

 

Unearned revenue (a)

 

10,000

 

 

 

10,000

 

Other current liabilities

 

1,394

 

 

 

1,717

 

Total other current liabilities

$

13,994

 

 

$

12,917

 

(a) Represents the fee payable to Telcon pursuant to the distributor agreement. See Note 3 for additional details.

 

Other long-term liabilities consisted of the following at June 30, 2023 and December 31, 2022 (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Trade discount

$

18,098

 

 

$

21,682

 

Other long-term liabilities

 

34

 

 

 

32

 

Total other long-term liabilities

$

18,132

 

 

$

21,714

 

 

 

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 purchased $388,000 and $200,000 of PGLG from Telcon in six months ended June 30, 2023 and June 30, 2022, respectively, of which $364,000 and $644,000 were reflected in accounts payable as of June 30, 2023 and December 31, 2022, 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 the Company’s obligations under the API Supply Agreement and the revised API Agreement. See Note 5 for information regarding the settlement in the six months ended June 30, 2023 and 2022 of the target shortfall.