| Summary of debt obligations |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2022 |
|
2021 |
Paycheck Protection Program loan |
|
$ |
— |
|
$ |
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 |
|
|
990 |
|
|
705 |
Total convertible debt |
|
|
2,857 |
|
|
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 |
|
|
402 |
|
|
176 |
Less: net debt issuance costs |
|
|
(427) |
|
|
(547) |
Total Centurion debt |
|
|
9,771 |
|
|
9,425 |
Total debt |
|
|
12,628 |
|
|
13,684 |
Less: current portion of debt |
|
|
— |
|
|
(515) |
Long-term debt |
|
$ |
12,628 |
|
$ |
13,169 |
|
As of December 31, 2021 and 2020, the Company’s debt obligations are summarized as follows (stated in thousands):
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
Central Bank line of credit |
|
$ |
— |
|
$ |
1,978 |
Central Bank promissory note |
|
|
— |
|
|
2,122 |
Paycheck Protection Program loan |
|
|
1,687 |
|
|
— |
Total |
|
|
1,687 |
|
|
4,100 |
|
|
|
|
|
|
|
Face value of convertible debenture |
|
|
3,450 |
|
|
3,450 |
Less: principal converted to common shares |
|
|
(60) |
|
|
— |
Less: deemed fair value ascribed to conversion feature and warrants |
|
|
(1,523) |
|
|
(1,523) |
Plus: accretion of implied interest |
|
|
705 |
|
|
324 |
Total convertible debt |
|
|
2,572 |
|
|
2,251 |
|
|
|
|
|
|
|
Face value of Centurion debenture |
|
|
11,000 |
|
|
— |
Less: deemed fair value ascribed to warrants |
|
|
(1,204) |
|
|
— |
Plus: accretion of implied interest |
|
|
176 |
|
|
— |
Less: net debt issuance costs |
|
|
(547) |
|
|
— |
Total Centurion debt |
|
|
9,425 |
|
|
— |
Total debt |
|
|
13,684 |
|
|
6,351 |
Less: current portion of debt |
|
|
(515) |
|
|
(4,100) |
Long-term debt |
|
$ |
13,169 |
|
$ |
2,251 |
|
| 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 nine months ended September 30, 2022 and 2021 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Accretion expense |
|
|
|
|
|
|
|
|
|
|
|
Convertible debenture |
$ |
95 |
|
$ |
95 |
|
$ |
285 |
|
$ |
285 |
Centurion debenture |
|
75 |
|
|
76 |
|
|
226 |
|
|
101 |
|
$ |
170 |
|
$ |
171 |
|
$ |
511 |
|
$ |
386 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
|
|
|
|
|
|
|
|
|
|
Convertible debenture |
$ |
— |
|
$ |
— |
|
$ |
221 |
|
$ |
220 |
Centurion debenture |
|
324 |
|
|
190 |
|
|
872 |
|
|
236 |
|
$ |
324 |
|
$ |
190 |
|
$ |
1,093 |
|
$ |
456 |
|
|
| Schedule of future minimum principal payments |
As of September 30, 2022, future minimum principal payments are summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
Convertible |
|
|
|
|
|
Debt |
|
Debenture |
Remainder of 2022 |
|
$ |
— |
|
$ |
— |
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 |
|
|
990 |
|
|
402 |
Less: net debt issuance costs |
|
|
— |
|
|
(427) |
|
|
$ |
2,857 |
|
$ |
9,771 |
|
As of December 31, 2021, future minimum principal payments are summarized as follows (stated in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP |
|
Convertible |
|
Bank |
|
|
|
Loan |
|
|
Debt |
|
Indebtedness |
2022 |
|
|
$ |
515 |
|
$ |
— |
|
$ |
— |
2023 |
|
|
|
372 |
|
|
965 |
|
|
— |
2024 |
|
|
|
372 |
|
|
2,425 |
|
|
— |
2025 |
|
|
|
372 |
|
|
— |
|
|
11,000 |
2026 |
|
|
|
56 |
|
|
— |
|
|
— |
Thereafter |
|
|
|
— |
|
|
— |
|
|
— |
Total |
|
|
|
1,687 |
|
|
3,390 |
|
|
11,000 |
Less: fair value ascribed to conversion feature and warrants |
|
|
|
— |
|
|
(1,523) |
|
|
(1,204) |
Plus: accretion and implied interest |
|
|
|
— |
|
|
705 |
|
|
176 |
Less: net debt issuance costs |
|
|
|
— |
|
|
— |
|
|
(547) |
|
|
|
$ |
1,687 |
|
$ |
2,572 |
|
$ |
9,425 |
|