Note 4 - Debt Obligations

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 4. Debt Obligations

The following table summarizes our debt obligations outstanding as of December 31, 2022 and 2021 (in thousands). The table does not include debt obligations of our partially owned subsidiary Clyra Medical (see Note 10, “Debt Obligations of Clyra Medical”).

	December 31,
	2022			2021
Current portion of debt:
SBA Paycheck Protection Program loan	$	43		$	314
Convertible note payable, matures March 1, 2023		50			—
SBA EIDL Loan, matures July 2053, current portion		10			—
Debt discount, net of amortization		(3	)		—
Total current portion of debt	$	100		$	314
Long-term debt:
SBA Paycheck Protection Program loans, matures May 2025	$	97		$	—
Convertible note payable, matures March 1, 2023		—			50
Debt discount, net of amortization		—			(20	)
SBA EIDL Loan, matures July 2053		140			150
Total long-term debt, net of current	$	237		$	180
Total	$	337		$	494

For the years ended December 31, 2022 and 2021, we recorded $53,000 and $234,000 of interest expense related to the amortization of discounts on convertible notes payable and coupon interest from our convertible notes and lines of credit.

Cash payment of Debt Obligations

On  August 13, 2021, we paid $178,000 in cash to Vernal Bay Investments, LLC, as payment of one-half the outstanding principal on the convertible note scheduled to mature on  August 12, 2021. In addition, we issued 1,272,321 shares of our common stock to pay the remaining $228,000 principal and interest due on the note.

On  March 1, 2021, we paid in cash the outstanding principal of $600,000 on the promissory note issued  August 9, 2019, and scheduled to mature on  August 9, 2021.

On  March 1, 2021, we paid in cash the outstanding principal of $50,000 on the remaining amount due on a line of credit in which was due on demand at any time after  September 1, 2019. There is no remaining balance on this line of credit, and we no longer have the ability to draw on the line of credit.

Conversion of Debt Obligations

On its maturity date of  April 20, 2021, we converted to equity a promissory note in the principal balance of $100,000 into 400,000 shares of our common stock, and $9,994 of accrued interest into 48,706 shares of our common stock.

Convertible note payable, matures March 1, 2023

On March 8, 2018, we received $50,000 and entered into a note payable. The note is due on upon demand from the noteholder, with sixty days’ notice. On  March 1, 2021, we and the holder of a $50,000 note payable modified the note to set a specific maturity date of  March 1, 2023, and allow the investor to convert the note to our common stock at a price of $0.16 per share. In lieu of interest during the extended period of the note, we issued the investor a stock purchase warrant (see Note 6). Subsequent to December 31, 2022, this note was paid (see Note 14).

SBA Program Loans

On  February 7, 2022, we received notice that the SBA had forgiven $174,000 of ONM Environmental's $217,243 PPP loan. ONM has appealed this decision. On May 12, 2022, we received notice that the SBA had denied the forgiveness application of BLEST’s $97,000 PPP loan. We have appealed that decision. During the period upon which a forgiveness decision is on appeal, loan payments are deferred. The maturity date of the BLEST PPP loan was officially extended on our request to May 2025. On  March 19, 2021, we received notice that the SBA had approved the application for forgiveness of Clyra’s PPP loan totaling $43,000.

In July 2020, our subsidiary ONM Environmental received an Economic Injury Disaster loan from the U.S. Small Business Administration in the amount of $150,000. The has a 3.75% annual interest rate. Monthly payments of $800 began January 2023.