| Summary of debt obligations |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2023 |
|
2022 |
Face value of convertible debenture |
|
$ |
3,450 |
|
$ |
3,450 |
Less: principal converted to common shares |
|
|
(60) |
|
|
(60) |
Less: deemed fair value ascribed to conversion feature and warrants |
|
|
(1,523) |
|
|
(1,523) |
Plus: accretion of implied interest |
|
|
1,277 |
|
|
1,086 |
Total convertible debt |
|
|
3,144 |
|
|
2,953 |
|
|
|
|
|
|
|
Face value of Centurion debenture |
|
|
11,000 |
|
|
11,000 |
Less: deemed fair value ascribed to warrants |
|
|
(1,204) |
|
|
(1,204) |
Plus: accretion of implied interest |
|
|
626 |
|
|
476 |
Less: net debt issuance costs |
|
|
(308) |
|
|
(386) |
Total Centurion debt |
|
|
10,114 |
|
|
9,886 |
Total debt |
|
|
13,258 |
|
|
12,839 |
Less: current portion of debt |
|
|
(2,620) |
|
|
(965) |
Long-term debt |
|
$ |
10,638 |
|
$ |
11,874 |
|
As of December 31, 2022 and 2021, the Company’s debt obligations are summarized as follows (stated in thousands):
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
2021 |
Paycheck Protection Program loan |
|
$ |
— |
|
$ |
1,687 |
Total |
|
|
— |
|
|
1,687 |
|
|
|
|
|
|
|
Face value of convertible debenture |
|
|
3,450 |
|
|
3,450 |
Less: principal converted to common shares |
|
|
(60) |
|
|
(60) |
Less: deemed fair value ascribed to conversion feature and warrants |
|
|
(1,523) |
|
|
(1,523) |
Plus: accretion of implied interest |
|
|
1,086 |
|
|
705 |
Total convertible debt |
|
|
2,953 |
|
|
2,572 |
|
|
|
|
|
|
|
Face value of Centurion debenture |
|
|
11,000 |
|
|
11,000 |
Less: deemed fair value ascribed to warrants |
|
|
(1,204) |
|
|
(1,204) |
Plus: accretion of implied interest |
|
|
476 |
|
|
176 |
Less: net debt issuance costs |
|
|
(386) |
|
|
(547) |
Total Centurion debt |
|
|
9,886 |
|
|
9,425 |
Total debt |
|
|
12,839 |
|
|
13,684 |
Less: current portion of debt |
|
|
(965) |
|
|
(515) |
Long-term debt |
|
$ |
11,874 |
|
$ |
13,169 |
|
| Schedule of accretion expense and interest expense related to debt obligations |
The following table depicts accretion expense and interest expense (excluding debt issuance cost amortization) related to the Company’s debt obligations for the three and six months ended June 30, 2023 and 2022 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Accretion expense |
|
|
|
|
|
|
|
|
|
|
|
Convertible debenture |
$ |
95 |
|
$ |
95 |
|
$ |
191 |
|
$ |
191 |
Centurion debenture |
|
76 |
|
|
76 |
|
|
150 |
|
|
150 |
|
$ |
171 |
|
$ |
171 |
|
$ |
341 |
|
$ |
341 |
|
|
|
|
|
|
|
|
|
|
|
|
Debt issuance cost amortization |
|
|
|
|
|
|
|
|
|
|
|
Centurion debenture |
$ |
39 |
|
$ |
40 |
|
$ |
78 |
|
$ |
80 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
|
|
|
|
|
|
|
|
|
|
Convertible debenture |
$ |
75 |
|
$ |
77 |
|
$ |
221 |
|
$ |
221 |
Centurion debenture |
|
380 |
|
|
284 |
|
|
756 |
|
|
548 |
|
$ |
455 |
|
$ |
361 |
|
$ |
977 |
|
$ |
769 |
|
The following table depicts accretion expense, debt issuance cost amortization and interest expense related to the Company’s debt obligations for the years ended December 31, 2022 and 2021 (in thousands):
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
Accretion expense |
|
|
|
|
|
Convertible debenture |
$ |
381 |
|
$ |
381 |
Centurion debenture |
|
300 |
|
|
175 |
|
$ |
681 |
|
$ |
556 |
|
|
|
|
|
|
Debt issuance cost amortization |
|
|
|
|
|
Centurion debenture |
$ |
161 |
|
$ |
93 |
|
|
|
|
|
|
Interest paid |
|
|
|
|
|
Convertible debenture |
$ |
221 |
|
$ |
304 |
Centurion debenture |
|
1,230 |
|
|
456 |
|
$ |
1,451 |
|
$ |
760 |
|
| Schedule of future minimum principal payments |
As of June 30, 2023, future minimum principal payments are summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
Convertible |
|
|
|
|
|
Debt |
|
Debenture |
2023 |
|
$ |
2,620 |
|
$ |
— |
2024 |
|
|
770 |
|
|
— |
2025 |
|
|
— |
|
|
11,000 |
Total |
|
|
3,390 |
|
|
11,000 |
Less: fair value ascribed to conversion feature and warrants |
|
|
(1,523) |
|
|
(1,204) |
Plus: accretion and implied interest |
|
|
1,277 |
|
|
626 |
Less: net debt issuance costs |
|
|
— |
|
|
(308) |
|
|
$ |
3,144 |
|
$ |
10,114 |
|
As of December 31, 2022, future minimum principal payments are summarized as follows (stated in thousands):
|
|
|
|
|
|
|
|
|
Convertible |
|
|
|
|
Debt |
|
Debenture |
2023 |
|
$ |
965 |
|
$ |
— |
2024 |
|
|
2,425 |
|
|
— |
2025 |
|
|
— |
|
|
11,000 |
Total |
|
|
3,390 |
|
|
11,000 |
Less: fair value ascribed to conversion feature and warrants |
|
|
(1,523) |
|
|
(1,204) |
Plus: accretion and implied interest |
|
|
1,086 |
|
|
476 |
Less: net debt issuance costs |
|
|
— |
|
|
(386) |
|
|
$ |
2,953 |
|
$ |
9,886 |
|