Note 6 - Nil Coupon Non-redeemable Convertible Unsecured Loan Notes

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

11.     DEBT FINANCING

On June 30, 2022, the Company entered into an Investment Collateral Security agreement to use for the sole purpose of issuing standby letters of credit that replaces the former Cash Collateral agreement with BMO Harris. The Investment Collateral Security agreement requires us to pledge our investments as collateral for 150% of the aggregate face amount of outstanding standby letters of credit. The Company pays 250 basis points on the face values of outstanding letters of credit. There are no financial covenants set forth in the Investment Collateral Security agreement. At December 31, 2023, the Company had outstanding standby letters of credit totaling approximately $904 under the Investment Collateral Security agreement. At December 31, 2023, the investments held as collateral totaled $1,356. Fuel Tech is committed to reimbursing the issuing bank for any payments made by the bank under these instruments.

NIL Coupon Non-redeemable Convertible Unsecured Loan Notes [Member]

Notes to Financial Statements

Debt Disclosure [Text Block]

6.     NIL COUPON NON-REDEEMABLE CONVERTIBLE UNSECURED LOAN NOTES

At December 31, 2023 and 2022, we had a principal amount of $76 of nil coupon non-redeemable convertible unsecured perpetual loan notes (Loan Notes) outstanding. The Loan Notes are convertible at any time into common stock at rates of $6.50 and $11.43 per share, depending on the note. As of December 31, 2023, the nil coupon loan notes were convertible into 6,715 shares of common stock. Based on our closing stock price of $1.05 at December 31, 2023, the aggregate fair value of the common stock that the holders would receive if all the loan notes were converted would be approximately $7, which is less than the principal amount of the loans outstanding as of that date. The Loan Notes bear no interest and have no maturity date. They are repayable in the event of our dissolution and the holders do not have the option to cash-settle the notes. Accordingly, they have been classified within stockholders’ equity in the accompanying balance sheets. The notes do not hold distribution or voting rights unless and until converted into common stock.

For the years ended December 31, 2023 and 2022, there were no Loan Notes repurchased by the Company.