Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 109

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 16
Chunk 109
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 not modified as part of this amendment. The exercise price and terms of the outstanding Warrant remain unchanged. The initial $1.3 million fair value of the Warrant, the $11.5 million final interest payment fees and $4.6 million of debt issuance costs have been recorded as debt discount and are being amortized to interest expense using the effective interest method over the term of the Loan Agreement. Future minimum principal payments under the Term Loan, including the final payment fees, as of December 31, 2024 are as follows (in thousands): 

        Year ending December 31:

        2025
         
        $
        —

        2026

        7,500

        2027

        229,706

        Total principal and interest payments

        237,206

        Less: payment-in-kind and final payment fee

        (37,206
        )

        Total term loan borrowings
         
        $
        200,000

      During the years ended December 31, 2024 and 2023, the Company recognized $23.2 million and $17.1 million, respectively, of interest expense, including amortization of the debt discount, in connection with the Loan Agreement. As of December 31, 2024 and 2023, the Company had outstanding loan balance of $211.8 million and $148.1 million, respectively, and accrued interest of $1.7 and $1.1 million, respectively.

F-19

6. Revenue Interest Financing Liability On May 3, 2022, the Company entered into a Revenue Interest Financing Agreement with Initial Investors NQ, Sagard, and Hercules pursuant to which the Company will receive up to $260 million in funding from the Initial Investors. Under the terms of the Revenue Interest Financing Agreement, the Company received $100 million at the initial closing and received an additional $160 million upon FDA approval of VOQUEZNA for treatment of Erosive GERD during the fourth quarter of 2023. Additionally, on October 31, 2022, the Company entered into a Joinder Agreement with the Initial Investors and CO Finance LVS XXXVII LLC, or the Additional Investor, and Hercules, together as the investors. Under the terms of the Joinder Agreement, the Company received $15 million in additional funding upon FDA approval of vonoprazan for Erosive GERD, or Approval Additional Funding, during the fourth quarter of 2023,