Quarterly report pursuant to Section 13 or 15(d)

Accounts Payable

Accounts Payable
3 Months Ended
Mar. 31, 2023
Payables and Accruals [Abstract]  
Accounts Payable

Note 4 – Accounts Payable


Accounts payable consisted of the following (in thousands):


    March 31, 2023 (Unaudited)     December 31, 2022  
Accounts payable to a third-party manufacturer   $ 2,114     $ 2,283  
Other accounts payable     1,017       857  
Total accounts payable   $ 3,131     $ 3,140  


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. As of December 31, 2022, outstanding accounts payable balance to the third-party product manufacturer amounted to $2.3 million.


During the period ended March 31, 2023, the Company recorded research and development expenses of $1.3 million to account for services rendered by the third-party product manufacturer. In addition, the Company also paid in cash of $600,000 and issued 486,819 shares of its common stock with a fair value of $287,000 in settlement of accounts payable of $820,000 (resulting in a gain of on settlement of $533,000). As of March 31, 2023, outstanding balance to the third-party product manufacturer amounted to $2.1 million.