Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 285

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 285
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 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, 2024 and 2023, the Company recognized $48.7 million and $24.7 million, respectively, of interest expense in connection with the revenue interest financing liability.The Company will record liabilities associated with achievement of the sales milestone when such contingent event occurs. To determine the accretion of the liability related to the Revenue Interest Financing Agreement, the Company is required to estimate the total amount of future royalty payments and estimated timing of such payments based on the Company’s revenue projections. As royalty payments are made, the balance of the debt obligation will be effectively repaid. Based on the Company’s periodic review, the exact timing of repayment is likely to be different in each reporting period as compared to those estimated in the Company’s initial revenue projections. A significant increase or decrease in actual net sales of vonoprazan compared to the Company’s revenue projections could impact the interest expense associated with the revenue interest financing liability. Also, the Company’s total obligation can vary