Secured Note Payable

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Secured Note Payable

Note 9 – Secured Note Payable

On March 27, 2018, the Company entered into a Secured Promissory Note Agreement (the “Secured Note”) with Tech Capital for a principal amount of $1.2 million. The Secured Note was amended and restated on May 26, 2020 to reflect the then-current balance on the Secured Note. There were no other changes to the terms and conditions of the Secured Note. As of March 31, 2021, the principal balance of the Secured Note was $0.5 million.

The Secured Note has a maturity date of April 1, 2023. The unpaid principal balance accrues interest at a rate of 8% per annum. Principal and interest payments are due on the first day of each month commencing on May 1, 2018. The Secured Note is subject to the terms and conditions of and is secured by security interests granted by the Company in favor of Tech Capital under the Loan Agreement (see Note 8 – Secured Revolving Credit Facility). An event of default under such Loan Agreement is an event of default under the Secured Note and vice versa. In addition, the accounts receivable, inventory, and other assets of Nephros International Limited, a wholly-owned subsidiary of the Company, are available collateral in meeting the Company’s obligations under the Loan Agreement.

During each of the three months ended March 31, 2021 and 2020, the Company made payments under the Secured Note of approximately $72,000. Included in the total payments made, approximately $11,000 and $16,000, respectively, was recognized as interest expense on the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2021 and 2020.

As of March 31, 2021, future principal maturities are as follows (in thousands):

Fiscal Years
2021 (excluding the three months ended March 31, 2021)	$	168
2022		269
2023		95
Total	$	532