Company: PTPI
Filing Date: 2025-02-14
Form Type: S-1/A
Source: 0001410578-25-000137
Chunk: 233

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-02-14
Form: S-1/A
Chunk 233
---
 accrued expenses by $ 6.5million and decreased accrued inventory purchases by $ 14.2million; which were partially offset by a decrease in API purchase commitments of $ 6.2million and an increase to liabilities for the Note of $ 10.2million (which is net of the $ 0.9million prepayment on the Note). As a result, the Company recorded a $ 3.4million gain on settlement. As of December 31, 2023, and 2022, the Company has $ 0.0and $ 0.0million, respectively, of accrued inventory purchases related to the Company’s minimum purchase obligations with Vivus for raw material or API inventory. API inventory is not a finished good. The Company has $ 1.2million of API which is classified as prepaid inventory. The additional API inventory that the Company does not have title to is classified as API Product in either other current assets or other assets, depending on whether the Company expects to take title to the product within one year from the date of the financial statements. As of December 31, 2023, and 2022, there was $ 0.7million and $ 0.7million respectively included in other current assets (see Note 5 Prepaid and Other Current Assets). As of December 31, 2023, and 2022, there was $ 4.2million and $ 5.1million included as other assets on the accompanying consolidated balance sheets, respectively. The Company reviews its inventory levels and purchase commitments for excess amounts that it is required to purchase but projects it will not be able to sell prior to product expiry. The Company did not record any reserve for the years ended December 31, 2023, and 2022. During the years ended December 31, 2023, and 2022, the Company incurred royalties to MTPC for Stendra(R) of $ 114,319and $ 136,732, respectively. Royalties incurred were included in cost of goods sold in the consolidated statements of operations. As of December 31, 2023, and 2022, the Company had a receivable for royalties of $ 56,503and $ 106,115, respectively, which is included in other current assets in prepaid expenses and other current assets (see Note 5 Prepaid and Other Current Assets). The license agreement between MTPC and Vivus (“MTPC License”) contains certain