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.