Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 111

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 16
Chunk 111
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 December 31, 2023, the Company received gross proceeds of $175.0 million before deducting transaction costs of $2.3 million, which resulted in net proceeds of $172.7 million. The Company has evaluated the terms of the Revenue Interest Financing Agreement and concluded that the features of the Investment Amount are similar to those of a debt instrument. Accordingly, the Company has accounted for the transaction as a debt obligation with interest expense based on an imputed effective rate derived from the initial carrying value of the obligation and the expected future payments. The Company recalculates the effective interest rate each period based on the current carrying value and the revised estimated future payments. As of December 31, 2024, the effective interest rate of the revenue interest financing liability was approximately 12.51%. Changes in future payments from previous estimates are included in the current and future interest expense. The carrying value of the revenue interest financing liability was $353.0 million and $306.9 million as of December 31, 2024 and 2023, respectively. 

F-20

Total revenue interest financing liability consists of the following (in thousands): 

        Liability balance as of January 1, 2023
         
        $
        109,525

        Proceeds from the Revenue Interest Financing Agreement

        175,000

        Less: transaction costs

        (2,325
        )

        Less: royalty payments and payables

        —

        Plus: interest expense

        24,727

        Ending liability balance as of December 31, 2023

        306,927

        Less: current portion

        (7,111
        )

        Long-term liability balance as of December 31, 2023
         
        $
        299,816

        Liability balance as of January 1, 2024
         
        $
        306,927

        Proceeds from the Revenue Interest Financing Agreement

        —

        Less: transaction costs

        —

        Less: royalty payments and payables

        (2,627
        )

        Plus: interest expense

        48,738

        Ending liability balance as of December 31, 2024

        353,038

        Less: current portion

        (19,777
        )

        Long-term liability balance as of December 31, 2024
         
        $
        333,261

      During the years ended December 31,