Annual report pursuant to Section 13 and 15(d)

Accrued Liabilities and other Long-Term Liabilities (Tables)

v3.21.1
Accrued Liabilities and other Long-Term Liabilities (Tables)
12 Months Ended
Dec. 31, 2020
Accrued Liabilities and other Long-Term Liabilities  
Schedule of Accrued Expenses and Other Long-Term Liabilities

Accrued expenses and other long-term liabilities consisted of the following:

December 31, 

($ in thousands)

    

2020

    

2019

Accrued expenses:

 

  

 

  

Professional fees

$

1,236

$

1,153

Salaries, bonus and related benefits

 

6,701

 

6,683

Research and development

 

5,007

 

4,215

Research and development - manufacturing

 

518

 

1,017

Research and development - license maintenance fees

 

461

 

361

Research and development - milestones

 

600

 

Accrued royalties payable

 

2,682

 

2,320

Accrued coupon funding expense

 

10,869

 

8,391

Other

 

1,188

 

1,259

Total accrued expenses

$

29,262

$

25,399

Other long-term liabilities:

 

  

 

  

Deferred rent and long-term lease abandonment charge1

$

1,949

$

2,136

Partner company note payable, long-term

Ximino agreement2

3,622

4,990

Isotretinoin agreement3

2,792

Anti-itch product agreement4

945

Total other long-term liabilities and partner company note payable, long-term

$

9,308

$

7,126

Note 1:  Balance consists of deferred charges related to build-out of the New York facility

Note 2:  As of December 31, 2019, Journey recorded a note payable, net of an imputed interest discount of $2.3 million, of $4.7 million in connection with its acquisition of Ximino, see Note 9. The imputed interest discount was calculating utilizing an 11.96% effective interest rate based upon a non-investment grade “CCC” rate over a five-year period.  Amortization of interest discount was $0.6 million and $0.3 million for the years ended December 31, 2020 and 2019, respectively. At December 31, 2020, $2.0 million was classified as Partner company note payable, short-term on the Company’s Consolidated Balance Sheet.

Note 3: As of December 31, 2020, Journey recorded a note payable, net of an imputed interest discount of $0.3 million, of $3.7 million in connection with its acquisition of the Isotretinoin agreement, see Note 9. The imputed interest discount was calculated utilizing a 4.00% effective rate, which represents the market rate for an asset-backed three year loan, secured by receivables. Amortization of interest discount was $0.1 million for the year ended December 31, 2020. At December 31, 2020, $0.5 million of note payable was classified as Partner company note payable, short-term on the Company’s Consolidated Balance Sheet.

Note 4: As of December 31, 2020, Journey recorded a note payable, net of an imputed interest discount of $0.1 million, of $3.7 million in connection with its acquisition of an anti-itch product, see Note 9. The imputed interest discount was calculated utilizing a 4.25% effective rate, which represents the market rate for an asset-backed three year loan, secured by receivables. Amortization of interest discount was negligible  for the year ended December 31, 2020. As of December 31, 2020, $2.8 million of note payable was classified as Partner company note payable, short-term on the Company’s Consolidated Balance Sheet.