Fortress Biotech, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Accrued Liabilities and other Long-Term Liabilities

Accrued Liabilities and other Long-Term Liabilities

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Accrued Expenses and Other Long-Term Liabilities

6. Accrued Liabilities and other Long-Term Liabilities

Accrued expenses and other long-term liabilities consisted of the following:

	As of December 31,
	2014		2013
($ in thousands)
Accrued expenses:
Salaries, bonuses and employee benefits	$	598	$	450
Severance (Note 16)		38		1,502
Professional fees		837		351
Research and development expenses		832		1,245
State franchise taxes				190
Ovamed manufacturing rights short-term component (Note 15)		1,000		500
Short-term lease impairment charge		165
Other		213		192
Total accrued expenses	$	3,683	$	4,430
Other long-term liabilities:
Hercules Note end of term charge (Note 11)				398
Ovamed manufacturing rights long-term component (Note 15)		334		679
Long-term lease impairment charge		268
Deferred rent		120
Total other long-term liabilities	$	722	$	1,077

In December 2012, the Company acquired certain manufacturing rights from Ovamed and agreed to pay an aggregate of $1.5 million, in three installments of $500,000 on December 12, 2014, 2015 and 2016, respectively. As of December 31, 2014, the Company had not paid any of the amount due to Ovamed. The accrual is recorded at present value on the Company’s Consolidated Balance Sheets as a current accrued expense of $1.0 million and as a long-term liability of $334,000 as of December 31, 2014. This obligation was recorded at its estimated net present value; accretion of the obligation was $154,000 and $136,000 for the years ended December 31, 2014 and 2013, respectively, and is recorded as interest expense.