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SEC filingAcura Pharmaceuticals received $400,000 in new loans from Abuse Deterrent Pharma on March 30, April 3, April 20, and May 5, 2026, increasing the Note's principal to $10,294,279 with $1,090,000 accrued interest as of May 5, 2026.
Acura Pharmaceuticals has significantly increased its debt to Abuse Deterrent Pharma, LLC (AD Pharma), its majority shareholder owning 65% of common stock as of April 30, 2026, through four additional $100,000 loans in early 2026, bringing the total principal under the November 10, 2022 Note to $10.3 million plus $1.09 million accrued interest. This funding is critical for day-to-day operations but underscores acute liquidity pressures, with the company warning that absent additional financing by end of May 2026, it faces operational cutbacks including employee furloughs/layoffs or bankruptcy, potentially wiping out shareholder value. The Note carries a 5.25% interest rate, escalating to 7.5% on overdue amounts, with defaults triggered by payment delays beyond 5 days or insolvency indicators. AD Pharma, controlled by Mr. Schutte (13% direct ownership), provides related-party financing amid stalled product development milestones like FDA acceptance for LTX-03 by June 30, 2026. Investors should note the heightened default risk and dependency on this creditor for survival, with no disclosed repayment timeline or new equity infusion.