Note 4 – Accounts Payable

Accounts payable consisted of the following:

  Schedule of Accounts Payable

The Company relies on a third-party contract manufacturing operation to produce and/or test our compounds used in our potential product candidates.

In October 2020, the Company entered into a Master Services Agreement with a third-party product manufacturer to perform biologic development and manufacturing services on behalf of the Company. Associated with this, the Company has subsequently executed a number of Statements of Work for the research and development of products for use in clinical trials.

On August 24, 2022, existing agreements with the third-party product manufacturer were amended. As part of the amendment, the third-party manufacturer agreed that services to be rendered in future periods, will be paid or settled at the Company’s discretion, in a combination of cash and issuance of the Company’s common stock. The amendment also eliminated future financial commitments of the Company.

The outstanding balance payable to the third-party product manufacturer totaled $2.9 million and $2.3 million at June 30, 2023 and December 31, 2022, respectively.

The Company recorded $2.1 million and $3.7 million in research and development expenses to account for services rendered by the third-party product manufacturer for the three months and six months ended June 30, 2023, as compared to $1.1 million and $3.2 million for the same comparable periods in 2022. In addition, the Company paid cash of $1.1 million and issued 1.3 million shares of its common stock with a fair value of $591 in settlement of accounts payable of $1.1 million, which resulted in a gain of on settlement of $547, during the six months ended June 30, 2023.

The outstanding accounts payable balance due to the third-party product manufacturer totaled $2.9 million and $2.3 million as of June 30, 2023 and December 31, 2022, respectively.