Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 6 — Debt

Debt and notes payable consists of the following:

	September 30,
	2022		December 31,
	(unaudited)		2021
	(In millions)
GHI LLC note payable	$	3.6	$	3.4
Other liabilities		0.2		0.2
Total long term debt	$	3.8	$	3.6

The Company entered into a Term Loan and Security Agreement (“GHI Loan Agreement”) with Gazellek Holdings I, LLC (“GHI LLC”), pursuant to which GHI LLC lent $3,450,000 to the Company on August 6, 2021. The loan bears in-kind interest, quarterly, at the annual rate of 7%, which has the effect of compounding the interest and adding it to the principal amount. The loan is secured by substantially all of the Company’s assets and those of all of its subsidiaries, which are required to guarantee the loan, and matures August 2, 2024.

The Company is required to prepay the loan upon receiving proceeds from future indebtedness exceeding $5,000,000 (other than indebtedness that is junior to the loan), or if the Company issues any capital stock (provided that the Company is allowed to retain up to 20% of the proceeds from such issuance). The GHI Loan Agreement contains customary representations and warranties, covenants and events of default. Upon the occurrence of an event of default, the loan bears interest at a rate 5% above the then-effective interest rate and, at GHI LLC’s option, is payable either in cash or in cash and shares of Company common stock, valued at market, equal to up to 10% of the outstanding principal amount of the loan. A default fee equal to 0.5% of the outstanding principal applies if any default exists for 10 days or more.

Scheduled maturities of the Company’s long-term debt, as they exist as of September 30, 2022, in each of the next five fiscal years and thereafter are as follows:

Fiscal years ending in	(in millions)
2022	$	—
2023		0.2
2024		3.6
2025		—
2026		—
2027 and thereafter		—
Total	$	3.8