10. Accounts Payable and Accrued Expenses and Partner Company Installment Payments

Accounts payable and accrued expenses consisted of the following:

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Partner company installment payments – licenses

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In August 2024, Journey executed a settlement agreement (the “Ximino Settlement Agreement”) to settle amounts owed by Journey to Sun Pharmaceutical Industries, Inc. (“Sun”) pursuant to the Ximino asset purchase agreement. Journey owed $3.0 million of license installment payments to Sun associated with the license of Ximino. Pursuant to the Ximino Settlement Agreement, Journey agreed to settle the total outstanding obligation owed to Sun for a total of $1.9 million, payable in three installments: (1) $0.6 million upon execution of the Ximino Settlement Agreement, (2) $0.6 million on December 1, 2024, and (3) $0.6 million on January 15, 2025. Journey accounted for the settlement of the license installment payment as a gain of $1.1 million for the difference between the carrying value of the license installment payments of $3.0 million and the settlement amount of $1.9 million. The Company recorded the difference of $1.1 million as a gain on extinguishment of debt, which is included in Other income on the unaudited condensed consolidated statements of operations.