v3.23.3
Interest Expense, net
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Interest Expense, net

16. Interest Expense, net

 

Interest expense, net consists of the following:

 

                 
   For three months ended
June 30,		   For six months ended
June 30,		 
(in thousands)  2023   2022   2023   2022 
                 
Interest expense  $(32)  $(3)  $(33)  $(7)
Contract asset interest expense   (89)   (89)   (179)   (179)
Interest income – related party   40    53    94    110 
Interest income – other   2    1    4    5 
Interest expense, net  $(79)  $(38)  $(114)  $(71)

 

Interest expense is comprised primarily of interest on our Loan and Security Agreement with MidCap Business Credit LLC.

 

Contract asset interest expense relates to the $1.7 million contract asset in connection with the $7.3 million start-up cost financing received from Maruho under the Cutanea acquisition share purchase agreement. The contract asset is amortized on a straight-line basis using a 6% interest rate over the financing arrangement contract term, which ends on December 31, 2023.

 

21. Interest Expense, net

 

Interest expense, net consists of the following:

 

           
   For years ended December 31, 
(in thousands)  2022   2021 
Interest expense   (12)   (2)
Contract asset interest expense   (358)   (358)
Interest income- related party   165    - 
Interest income – other   10    16 
Interest expense, net  $(195)  $(344)

 

Contract asset interest expense relates to the $1.7 million contract asset in connection with the $7.3 million start-up cost financing received from Maruho under the Cutanea acquisition share purchase agreement. The contract asset is amortized on a straight-line basis using a 6% interest rate over the financing arrangement contract term, which ends on December 31, 2023.  

 

Related party interest income relates to the recorded receivable of $6.1 million from Biofrontera AG for its 50% share of the balance of a legal settlement.