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PREPAID EXPENSES AND OTHER ASSETS
6 Months Ended
Jun. 30, 2013
PREPAID EXPENSES AND OTHER ASSETS  
PREPAID EXPENSES AND OTHER ASSETS

6. PREPAID EXPENSES AND OTHER ASSETS

 

Prepaid expenses and other assets consist of (in thousands):

 

 

 

Balance as of

 

 

 

June 30, 2013

 

December 31, 2012

 

Prepaid insurance

 

$

3,220

 

$

6,979

 

Prepaid sales and marketing expenses

 

6,139

 

5,735

 

Prepaid medical affairs expenses

 

3,965

 

1,782

 

Manufacturing capacity commitment fees

 

1,131

 

2,300

 

Other prepaid expenses and assets

 

3,883

 

2,363

 

Total

 

$

18,338

 

$

19,159

 

 

The amounts included in prepaid expenses and other assets consist primarily of prepaid insurance, and deposits and prepayments for future services, primarily related to prepaid product commercialization costs for services relating to future periods in support of the sales and marketing of Qsymia in the U.S., prepayments related to medical affairs activities for Qsymia and STENDRA, interest income receivable, and manufacturing capacity commitment fees. These amounts represent probable future economic benefits obtained or controlled by the Company as a result of past transactions or events, which meet the definition of an asset under FASB Concept Statement 6. As such, these costs have been deferred as prepaid expenses and other assets on the condensed consolidated balance sheet and will be either (i) charged to expense accordingly when the related prepaid services are rendered to the Company, or (ii) converted to cash when the receivables are collected by the Company.