Convertible Notes Payable - Related Parties

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Convertible Notes Payable - Related Parties

DEBT

        Mortgages and other notes payable consist of the following (in thousands):

Description	June 30, 2020		December 31, 2019
Fixed rate notes
$16.5 million 4.97% Note, due September 26, 2023	$	15,402	$	15,539
Total notes payable principal	15,402		15,539
Less deferred financing costs, net of accumulated amortization	(91)		(105)
Total notes payable	$	15,311	$	15,434

        Our mortgage debt was collateralized by one operating property as of June 30, 2020 and December 31, 2019 with a net book value of $22.2 million and $22.3 million, respectively. Our loan contains restrictions that would require the payment of prepayment penalties for the acceleration of outstanding debt and is secured by a deed of trust on our property and the assignment of certain rents and leases associated with the property. Our loan is subject to customary covenants. As of June 30, 2020, we were in compliance with all loan covenants.

        Scheduled maturities of notes payable as of June 30, 2020 were as follows (in thousands):

Year	Amount Due
2020 (remaining)	$	138
2021	294
2022	311
2023	14,659
Total	$	15,402

CONVERTIBLE NOTES PAYABLE - RELATED PARTIES        On November 20, 2015, five trustees on our board of trustees loaned $197,780 to the Company in exchange for convertible notes payable. The convertible notes payable accrue interest at 10% per annum and originally matured on November 20, 2018. In 2019, our board of trustees approved an extension of the maturity date to November 20, 2021. The convertible notes payable can be converted by the noteholders into Common Shares at the rate of $1.331 per Common Share at any time. At maturity or when the Company chooses to call the convertible notes payable, the noteholders have the option to receive cash plus accrued interest or convert the convertible notes payable into Common Shares at $1.331 per Common Share. Accrued interest on these related party convertible notes was approximately $91,000 as of June 30, 2020 compared with approximately $81,000 as of December 31, 2019.