Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2022

Accounts Payable and Accrued Expenses

Accounts Payable and Accrued Expenses

Note 4 – Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2022 and December 31, 2021 are as follows:

	September 30, 2022		December 31, 2021
Accounts payable	$	218,000	$	427,000
Clinical trials		1,930,000		2,995,000
Professional fees		663,000		510,000
Commercial insurance premium financing		473,000		269,000
Accrued severance		223,000		—
Accrued compensation		—		389,000
Other		85,000		221,000
Accounts payable and accrued expenses	$	3,592,000	$	4,811,000

Commercial Insurance Premium Financing Agreement

In June 2022, the Company entered into an insurance premium financing agreement for $1,159,000, with a term of eight months and annual interest rate of 3.98% and made a down payment of $402,000. Under the terms and provisions of the agreement, the Company is required to make principal and interest payments totaling $95,000 per month over the remaining term of the agreement. The outstanding obligation was $473,000 as of September 30, 2022.

Accrued Severance

The Company recorded a charge of $534,000 in the third quarter of 2022 relating to (i) the reduction in force for the employees that were terminated with an effective date of August 31, 2022 and a ratable accrual for those employees who have been provided notice that their employment is expected to be terminated on December 31, 2022. These charges consist primarily of one-time severance and termination benefits paid in cash. The Company also expects to record a charge of up to $225,000 during the fourth quarter which reflects the continued ratable accrual for severance and retention related benefits for the employees who are expected to be terminated on December 31, 2022.  The foregoing estimated amounts do not include any non-cash charges associated with stock-based compensation related to those employees whose employment is expected to be terminated on December 31, 2022.