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CONVERTIBLE DEBT
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
CONVERTIBLE DEBT CONVERTIBLE DEBT
2.00% Convertible Senior Notes due 2024 (the “2024 Notes”)
In September 2019, the Company issued $115.5 million of the 2024 Notes pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable semi-annually on March 1 and September 1 of each year, beginning March 1, 2020. The 2024 Notes will mature on September 1, 2024, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms.
The 2024 Notes were initially convertible into cash, shares of the Company’s common stock, or a combination thereof, at the Company’s election, at an initial conversion rate of 115.5001 shares of the Company’s common stock per $1,000 principal amount of the 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 per share). Pursuant to the supplemental indenture entered into by the Company and the trustee during the fourth quarter of the fiscal year ended December 31, 2021, the Company made an irrevocable election to settle the principal amounts of the 2024 Notes solely with cash and may pay or deliver, as the case may be, any conversion value greater than the principal amount in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes or a notice of redemption and under other circumstances, in each case, as set forth in the 2024 Notes Indenture.
The 2024 Notes will be convertible at certain times and upon the occurrence of certain events in the future, in each case, specified in the 2024 Notes Indenture. Further, on or after June 1, 2024, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2024 Notes may convert all or a portion of their 2024 Notes regardless of these conditions.
The 2024 Notes remained convertible as of June 30, 2023, as the last reported sale price of the Company’s common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter was greater than or equal to 130% of the conversion price of the 2024 Notes on each applicable trading day. All $114.4 million of the net carrying amount of the 2024 Notes outstanding as of June 30, 2023 was classified as a current liability as of that date.
The following table presents the components of the 2024 Notes:
As of
(in thousands, except for years and percentages)June 30, 2023December 31, 2022
Liability:
Principal amount$115,500 $115,500 
Less: Debt issuance costs, net of amortization(1,072)(1,519)
Carrying amount$114,428 $113,981 
The following table presents interest expense recognized for the 2024 Notes:
Three Months EndedSix Months Ended
(in thousands)June 30, 2023July 1, 2022June 30, 2023July 1, 2022
Contractual interest expense$578 $578 $1,156 $1,156 
Amortization of debt issuance costs224 217 447 434 
Total interest expense recognized$802 $795 $1,603 $1,590