Journey Medical Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

INTEREST EXPENSE AND FINANCING FEES

INTEREST EXPENSE AND FINANCING FEES

9 Months Ended

Sep. 30, 2021

INTEREST EXPENSE AND FINANCING FEES

INTEREST EXPENSE AND FINANCING FEES

NOTE 13. INTEREST EXPENSE AND FINANCING FEES

Interest expense and financing fees for the periods consisted of the following:


	Three Months Ended September 30,
	2021						2020
($in thousands)	Interest		Fees¹		Total		Interest		Fees¹		Total
Convertible preferred shares	$	450	$	378	$	828	$	—	$	—	$	—
Dividend payable		365		—		365		—		—		—
Installment payments - licenses ²		170		—		170		187		—		187
Anti-itch product Note		10		—		10		—		—		—
Total Interest Expense and Financing Fee	$	995	$	378	$	1,373	$	187	$	—	$	187


	Nine Months Ended September 30,
	2021						2020
($in thousands)	Interest		Fees¹		Total		Interest		Fees¹		Total
Convertible preferred shares	$	1,034	$	648	$	1,682	$	—	$	—	$	—
Dividend payable		628		—		628		—		—		—
Installment payments - licenses ²		616		—		616		492		—		492
Anti-itch product Note		10		—		10		—		—		—
Total Interest Expense and Financing Fee	$	2,288	$	648	$	2,936	$	492	$	—	$	492

Note 1:Amortization of fees in connection with debt raises.

Note 2: Imputed interest expense related to Ximino, Accutane and anti-itch cream acquisitions.

The conversion premium relates to the 15% discount at which the Class A Preferred Stock converts, see Note 15. In accordance with the measurement and recognition guidance of ASC 835-30 Imputation of Interest, the Company will accrete the convertible preferred share settled notes to the estimated settlement amount of $14.7 million.