Company: ACHV
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000950170-25-036831
Chunk: 114

Company: ACHIEVE LIFE SCIENCES, INC.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 114
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 in 2024 as compared to 2023 was primarily due to the initiation, in May 2024, of our ORCA-OL open label safety trial. This increase was partially offset by a reduction in costs associated with our Phase 3 ORCA-3 trial and Phase 2 ORCA-V1 trial as both were completed in the second quarter of 2023. 

General and Administrative Expenses 

Our general and administrative expenses were as follows (in thousands):

    Year Ended December 31,

    2024

    2023

    Total general and administrative expenses
     
    $
    16,252

    $
    11,436

G&A expenses for the years ended December 31, 2024 and 2023 were $16.3 million and $11.4 million, respectively. The increase in 2024 as compared to 2023 was primarily due to higher employee expenses associated with stock based compensation expense and severance costs, commercial launch preparation costs, consulting costs, and legal expenses associated with patent activities and general corporate activities.

57

Interest Income

Total interest income for the years ended December 31, 2024 and 2023 was $2.4 million and $0.8 million, respectively. The increase in interest income for the year ended December 31, 2024 as compared to the same period in 2023was primarily due to higher average cash balances throughout 2024 and higher interest rates. 

Interest Expense 

Total interest expense for the years ended December 31, 2024 and 2023 was $2.2 million and $2.9 million, respectively. The decrease in interest expense for the year ended December 31, 2024 as compared to the same period in 2023 was due to a lower principal balance on our New Convertible Term Loan, relative to the Convertible Term Loan, that bears only a monthly interest as a result of the debt refinancing under the New Debt Agreement (see “Liquidity and Capital Resources” below). 

Change in fair value of contingent consideration

We determine the fair value of the contingent consideration using a probability based discounted cash flow model whereby we forecast the timing of the cash flow of the related future payment based on cytisinicline’s current clinical development phase and the remaining requirements for regulatory approval. Adjustments to the fair value of the contingent liabilities, other than payments, are recorded as a gain or loss in the Consolidated Statements of Loss and Comprehensive Loss (see Note