CORCEPT THERAPEUTICS INCCORT

CORCEPT THERAPEUTICS INC Debt Disclosure

10-KFiled Feb 26, 20191 min read
Debt Obligation
As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, Debt Obligation, under the Financing Agreement with Biopharma we borrowed $30.0 million and made payments to Biopharma equal to 20 percent of Korlym sales in that quarter. To secure our obligation, we granted Biopharma a security interest in our patents, trademarks, trade names, domain names, copyrights, know-how, books, records and regulatory approvals related to Korlym and certain other assets and any proceeds from them.  Biopharma’s right to receive payments expired in July 2017, when our payments had reached total of $45.0 million. All of our obligations under the Financing Agreement and Biopharma’s security interests in our assets are now extinguished.
We recorded no interest expense for the year ended December 31, 2018 and $0.5 million for the year ended December 31, 2017. Total accreted interest for the full term of the Financing Agreement was $15.0 million.
 
We capitalized $0.1 million of issuance costs related to the Financing Agreement, which we amortized over the term of the obligation. At December 31, 2018 and 2017, there were no unamortized issuance costs.

Historical Timeline

Fiscal YearFiled
2018Feb 26, 2019Showing above
2017Feb 28, 2018

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&ELeasesCommitmentsNew Standards