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Outstanding Debt
6 Months Ended
Jun. 30, 2021
Outstanding Debt  
Outstanding Debt

6. Outstanding Debt

The following two tables summarize outstanding debt as of June 30, 2021 and December 31, 2020, respectively (amount in thousands):

    

    

Stated

    

    

    

    

Interest

Conversion

Remaining

Carrying

Maturity Date

Rate

Price

Face Value

Debt Discount

Value

Short term convertible notes payable

 

  

 

  

 

  

 

  

 

  

 

  

6% unsecured

 

Due

 

6

%  

$

3.09

$

135

$

$

135

135

135

Short term notes payable

 

  

 

  

 

  

 

  

 

  

 

  

8% unsecured

 

Various

 

8

%  

 

N/A

 

5,271

 

(309)

 

4,962

9% unsecured

 

10/31/2021

 

9

%  

 

N/A

 

1,948

 

(93)

 

1,855

12% unsecured

 

On Demand

 

12

%  

 

N/A

 

703

 

 

703

 

7,922

 

(402)

 

 

7,520

Long term notes payable

1% unsecured

 

Various

 

1

%  

 

N/A

 

433

 

 

433

8% unsecured

 

12/31/2022

 

8

%  

 

N/A

 

11,005

 

(824)

 

10,181

6% secured

 

3/25/2025

6

%  

N/A

1,781

 

 

 

1,781

13,219

(824)

12,395

Ending balance as of June 30, 2021

$

21,276

$

(1,226)

$

20,050

    

    

Stated

    

    

    

    

Embedded

    

Interest

Conversion

Remaining

Conversion

Carrying

Maturity Date

Rate

Price

Face Value

Debt Discount

Option

Value

Short term convertible notes payable

 

  

 

  

 

  

 

  

 

  

 

  

 

  

6% unsecured

 

Due

 

6

%  

$

3.09

$

135

$

$

$

135

8% unsecured

 

4/30/2021

 

8

%  

$

0.85

 

2,125

 

(937)

 

2,507

 

3,695

 

2,260

(937)

 

2,507

 

3,830

Short term notes payable

 

  

 

  

 

  

 

  

 

  

 

  

 

  

8% unsecured

 

Various

 

8

%  

 

N/A

 

1,785

 

(51)

 

 

1,734

10% unsecured

 

Various

 

10

%  

 

N/A

 

263

 

 

 

263

12% unsecured

 

On Demand

 

12

%  

 

N/A

 

440

 

 

 

440

 

2,488

 

(51)

 

 

 

2,437

Long term notes payable

 

  

 

  

 

  

 

  

 

  

 

  

 

8% unsecured

 

Various

 

8

%  

 

N/A

 

7,160

 

(496)

 

 

6,664

6% secured

 

3/25/2025

 

6

%  

 

N/A

 

1,843

 

 

 

1,843

 

9,003

 

(496)

 

 

 

8,507

Ending balance as of December 31, 2020

$

13,751

$

(1,484)

$

2,507

$

14,774

On March 1, 2021, the Company entered into a Commercial Loan Agreement (the “Note”) with a commercial lender for an aggregate principal amount of $10 million. The Note bears interest at 8% per annum with a 22-month term. There are no principal repayments during the first 8 months of the term. The note is amortized in 14 installments starting on November 1, 2021. The Note carries an original issue discount of $1 million.

In April 2021, the Company received two additional loans under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act’s Paycheck Protection Program (“PPP”). The two PPP loans were received on April 9, 2021 in the amount of $0.4 million total. The current terms of the PPP loan is five years with a maturity date of March 2026 and it contains a favorable fixed annual interest rate of 1.00%. Payments of principal and interest on the PPP Loan are deferred for the first 10 months of the term of the PPP Loan. The Company is using the loan to make payments for payroll, health and disability insurance and rent.

On June 30, 2021, the Company entered into multiple four-month note agreements (the “Notes”) with various individual lenders (the “Holders”) with an aggregate principal amount of $1.9 million. The Notes contain a conditional piggy-back right to independently purchase shares from the Company, which provides a right for the Holders, contingent on the release of clinical trial data and a next private placement offering (“Next Offering”) after this release, to (a) purchase shares from the Company within seven days following such Next Offering at a 12% discount from the share price of the Next Offering for a variable number of shares equal to an amount up to 50% of the principal amount of the loan and (b) exchange some or all of the outstanding loan amount for a variable number of shares, within seven days after the Next Offering at a 12% discount, resulting in a reduced cash amount repayable under the loan agreement.

During the six months ended June 30, 2021, $5.6 million of debt and interest was independently exchanged by the lender into 5.1 million shares of common stock and 0.8 million warrants. The fair value of common stock and warrants for these conversions were approximately $7.5 million, extinguishing approximately $1.9 million in liability from the note conversions.

For the three months ended June 30, 2021 and 2020, interest expense related to notes payable totaled approximately $0.7 million and $1.1 million including amortization of debt discounts totaling $0.2 million and $0.7 million, respectively.

For the six months ended June 30, 2021 and 2020, interest expense related to notes payable totaled approximately $2.1 million and $1.7 million including amortization of debt discounts totaling $1.4 million and $1.1 million, respectively.