Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 7 — Debt

Debt and notes payable consists of the following:

	September 30,		December 31,
	2023		2022
	(unaudited)
	(in millions)
Tacora note payable	$	1.9	$	—
GHI LLC note payable		—		3.7
Other liabilities		0.2		0.2
Total long term debt	$	2.1	$	3.9

The Company entered into a Term Loan and Security Agreement (“Tacora Loan Agreement”) with Tacora Capital, LP (“Tacora”), an asset management firm, pursuant to which Tacora lent $2.0 million to the Company on September 25, 2023. The loan requires quarterly payments or accruals (at the Company’s option) of interest, equal to an 8% per annum. If the Company defaults on the loan, the interest rate increases to 11% per annum. The loan, and all accrued and unpaid interest, is due in full seven years following its issuance. The Company has the right to prepay the loan in increments of at least $100,000 at any time after the Preferred Stock (see Note 10 – Redeemable Preferred Stock and Restricted Stock Units) has been redeemed. Any amounts repaid by the Company to Tacora may not be re-borrowed. The Company incurred $0.1 million of issuance costs related to the loan, which is recognized as a reduction of the loan proceeds and amortized over the term of the loan.

As of September 30, 2023, the Company was in compliance with all covenants under the Tacora Loan Agreement.

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 $3.5 million to the Company on August 6, 2021. The GHI Loan Agreement was paid in full subsequent to the closing of the Tacora Loan Agreement on September 25, 2023..

Scheduled maturities of the Company’s long-term debt, as they exist as of September 30, 2023, in each of the next five fiscal years and thereafter are as follows:

Fiscal years ending in	(in millions)
2023	$	—
2024		—
2025		—
2026		—
2027		—
2028 and thereafter		2.1
Total	$	2.1