Residual royalty agreement liability, fair value at inception

$

346,000

$

346,000

Add: accretion of liability using effective interest rate

13,149,689

12,985,419

Less: cumulative payments

(5,357,616

)

(5,024,790

)

Less: extinguishments

(8,138,073

)

—

Residual royalty agreement liability, excluding embedded derivative liability

—

8,306,629

Add: embedded derivative liability at fair value (see Note 4)

—

1,570,000

Total residual royalty agreement liability

—

9,876,629

Residual royalty agreement liability, short-term portion

—

(1,025,837

)

Residual royalty agreement liability, long-term portion

$

—

$

8,850,792