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Notes Payable and Convertible Notes (Tables)
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Summary of Notes Payable and Convertible Notes
The Company’s notes payable and convertible notes are as follows:
 
    
LI Lending,
LLC
   
May 2020
Convertible
Notes
   
2022 Island
Global
Holdings
Related Party
Notes
    
May 2020
Convertible
Notes (Swap)
   
October 2021
Convertible
Note
    
Other
Loans
   
Total
 
Balance, December 31, 2020
   $ 45,362     $ 2,855     $ —        $ 11,867     $ —        $ 6,931     $ 67,015  
    
 
 
   
 
 
   
 
 
    
 
 
   
 
 
    
 
 
   
 
 
 
Loans advanced, net
     —         —         —          —         14,376        930       15,306  
Loan payments
     (4,671     —         —          —         —          (1,079     (5,750
Converted to equity
     —         (5,852     —          (11,867     —          —         (17,719
Accrued interest
     7,575       2,997       —          —         265        1,124       11,961  
    
 
 
   
 
 
   
 
 
    
 
 
   
 
 
    
 
 
   
 
 
 
Balance, December 31, 2021
   $ 48,266     $ —       $ —        $ —       $ 14,641      $ 7,906     $ 70,813  
    
 
 
   
 
 
   
 
 
    
 
 
   
 
 
    
 
 
   
 
 
 
Loans advanced, net
     —         —         245        —         —          13,138       13,383  
Loan payments
     (2,526     —         —          —         —          (130     (2,656
Converted to equity
     —         —         —          —         —          (2,784     (2,784
Accrued interest
     3,381       —         —          —         564        233       4,178  
    
 
 
   
 
 
   
 
 
    
 
 
   
 
 
    
 
 
   
 
 
 
Balance, June 30, 2022
   $ 49,121     $ —       $ 245      $ —       $ 15,205      $ 18,363     $ 82,934  
Less current portion
     —         —         —          —         —          (8,235     (8,235
    
 
 
   
 
 
   
 
 
    
 
 
   
 
 
    
 
 
   
 
 
 
Long-term portion
   $ 49,121     $ —       $ 245      $ —       $ 15,205      $ 10,128     $ 74,699  
    
 
 
   
 
 
   
 
 
    
 
 
   
 
 
    
 
 
   
 
 
 
Summary of Convertible Debt Outstanding as of June 30, 2022 were other payables totaling $18,363 which include notes issued as part of the acquisitions of Healthy Pharms, NECC, and Arkansas entities as follows:
Other
              
 
Subsidiary
  
Terms
  
June 30, 2022
    
December 31, 2021
 
Healthy Pharms Inc.   
Unsecured convertible note, due
November 18
, 2021 at 12% per annum
   $ —        $ 2,784  
Healthy Pharms Inc.   
Unsecured promissory note at $0.50 per share due December 18, 2022 at 10% per annum (1)
     3,377        3,213  
Island Global   
Promissory note due October 25, 2026 at 6% per annum
     10,128        —    
NECC   
Promissory note due September 12, 2022 at 10% per annum
     2,084        —    
Om of Medicine, LLC   
Promissory note due September 1, 2022 at 12% per annum (3)
     981        —    
Arkansas Entities   
Unsecured Promissory note due December 1, 2022, monthly interest payments at 14% per annum
     1,709        1,709  
Equipment Loans   
Secured by equipment, monthly payments beginning in 2021 at 15% per annum
     63        49  
Other   
Various
     21        151  
         
 
 
    
 
 
 
Total Notes Payable and Convertible
Notes
        $ 18,363      $ 7,906  
         
 
 
    
 
 
 
 
(1)
In November 2021, the unsecured promissory note was modified to be due and payable in full on or before December 18, 2022. The Company concluded the extension resulted in a debt modification under
ASC 470
.
(2)
In July 2022, the promissory note was modified, whereby 50% of the outstanding note payable was paid on July 28, 2022, and the remaining outstanding balance of the note was to be payable in full on or before September 12, 2022.
(3)
In April 2022, the Company entered into a seller note payable to pay the outstanding balance due resulting from the 2021 Om earnout in connection with prior period contingent considerations. The note bore 10% interest per annum and was due to be paid in full by July 1, 2022. At the time of the issuance of the note, the liability was current and was certain to be paid during 2022. In July 2022, the Company amended the note, whereby the Company paid $345 of the remaining balance on the seller note and the term of the remaining balance of the seller note was extended to September 1, 2022, bearing interest at 12% per annum. If payment is not received in full by September 1, 2022, the remaining balance on the note will accrue interest at
20% per
annum until payment is made in full. See Note 14 for further details on contingent considerations and the Om earnout.
Summary of Future Minimum Payments of Notes and Convertible Notes
Future minimum payments on the notes payable and convertible debt are as follows:
 
    
June 30, 2022
 
2022
   $ 8,235  
2023
     —    
2024
     64,326  
2025
     —    
2026
     12,874  
Thereafter
     —    
    
 
 
 
Total minimum payments
     85,435  
Effect of discounting
     (2,501
    
 
 
 
Present value of minimum payments
     82,934  
Less current portion
     (8,235
    
 
 
 
Long-term portion
   $ 74,699