Notes Payable

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Notes Payable

. NOTES PAYABLE

At September 30, 2023 and December 31, 2022, notes payable consisted of the following:

		September 30, 2023		December 31, 2022
		(in thousands)
Charitable Contributions1	$	400	$	764
Private placement debt dated April 30, 20212		244,623		237,795
Mortgage notes3		53,518		37,109
Total notes payable		298,541		275,668
Less: current portion of notes payable		(1,466)		(1,037)
Notes payable, net of current portion	$	297,075	$	274,631

1 In connection with acquisitions completed in 2017 and 2019, the Company is required to make quarterly charitable contributions of $50 thousand through October 2024 and annual charitable contributions of $250 thousand through May 2024, respectively. The net present value of these required payments has been recorded as a liability with interest rates ranging between 2.17% - 7.00%.

2 The April 30, 2021 private placement debt, as amended on October 21, 2021 (the “April 30, 2021 Notes”), were issued in a total amount of $249,934 thousand with an interest rate of 7.00%, maturing on April 30, 2025. The April 30, 2021 Notes were issued at a discount, the carrying value of which was $5,311 thousand and $12,139 thousand as of September 30, 2023 and December 31, 2022, respectively.

3 Mortgage notes with an initial value of $55,017 thousand and $38,292 thousand, respectively, were issued by the Company in connection with various operating properties, and were recorded at such gross value as of September 30, 2023 and December 31, 2022. These mortgage notes mature between August 20, 2025 and June 5, 2035 with interest rates ranging between 5.00% and 9.50%. The mortgage notes were issued at a discount, the carrying value of which was $237 thousand and $437 thousand, respectively, and are presented net of principal payments of $1,262 thousand and $746 thousand as of September 30, 2023 and December 31, 2022, respectively.

(b) Related Parties

A portion of the April 30, 2021 Notes are held by related parties as well as unrelated third-party lenders at a percentage of approximately 1% and 99%, respectively. The related parties consist of Benjamin Kovler, the Chairman and Chief Executive Officer of the Company (held through KP Capital, LLC and Outsiders Capital, LLC); Andrew Grossman, the Executive Vice President of Capital Markets of the Company (held through AG Funding Group, LLC); Anthony Georgiadis, the President and a director of the Company (held through Three One Four Holdings, LLC and ABG, LLC).