Notes Receivable

9 Months Ended

Sep. 30, 2023

Notes Receivable [Abstract]

Notes Receivable

Note 8. Notes Receivable

The following table presents the Company’s notes receivable as of September 30, 2023 ($ in thousands):

	Maturity Date	Stated Interest Rate			Principal Amount		Interest Receivable		Fair Value
Notes receivable, at fair value
Convergent convertible note - current	01/29/2023		8	%	$	1,000	$	125	$	1,125
Convergent convertible note - non-current	01/29/2023		8	%	$	250	$	-	$	250
Raefan Industries LLC Investment	12/31/2023		8	%	$	4,493	$	717	$	5,210
American Innovative Robotics Investment	04/01/2027		8	%	$	1,100	$	22	$	1,122
Notes receivable, at fair value - current portion									$	6,336
Notes receivable, at fair value - non-current portion									$	1,372

Convergent Therapeutics, Inc. Investment

The Company’s 8% convertible promissory note (“Convergent Convertible Note”) issued by Convergent Therapeutics, Inc. (“Convergent”) in the principal amount of approximately $1.8 million pursuant to a Note Purchase Agreement matured on January 29, 2023. Upon maturity, Convergent entered into a contractual repayment schedule with the Company. Pursuant to the schedule, Convergent will make a total of eight payments in the amount of $250 thousand and accrued interest, every three months until fully satisfied.

The principal balance of the Convergent Convertible Note was approximately $1.3 million as of September 30, 2023. The Company recorded principal repayment of $0.8 million and interest income of approximately $0.2 million on the Convergent Convertible Note for the nine months ended September 30, 2023.

Raefan Industries LLC Investment

The Company recorded an interest income receivable of approximately $0.7 million on the Raefan Industries Promissory Note as of September 30, 2023 and an unrealized loss on the note of approximately $0.2 million.

American Innovative Robotics, LLC Investment

The Company recorded interest income of approximately $67,000 on the Robotics Promissory Note for the nine months ended September 30, 2023.

Kaya Now Inc. Investment

During the fourth quarter of 2022, the Company identified indicators of impairment for the Kaya investment as a result of adverse changes in Kaya’s business operations, including liquidity concerns. As a result, the Company recorded an impairment charge of $0.5 million in the fourth quarter of 2022. The impairment charge represents an impairment loss of the total investment held as a promissory note resulting in a $0 balance for the Kaya Now Promissory Note as of September 30, 2023.

The Company received and recorded interest income related to the Kaya Now Promissory Note of approximately $10,000 for the nine months ended September 30, 2023.