Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.23.3
Notes Payable
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Notes Payable

12. Notes Payable

 

Economic Injury Disaster Loan

 

On May 28, 2020, the Company entered into the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. Pursuant to that certain Loan Authorization and Agreement (the “SBA Loan Agreement”), the principal amount of the EIDL Loan is up to $260,500, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per annum. Installment payments, including principal and interest, are due monthly which the Company began paying in December 2022 (thirty months from the date of the SBA Note) in the amount of $1,270. The balance of principal and interest is payable thirty years from the date of the SBA Note. In connection therewith, the Company received an $8,000 advance, which does not have to be repaid. The balances of the principal and accrued interest amounted to $279 thousand and $283 thousand as of September 30, 2023 and December 31, 2022, respectively.

 

The future annual principal amounts and accrued interest to be paid as of September 30, 2023 are as follows:

 

    Amount  
For the year ending December 31 ($ in thousands):        
2023 (remainder of the year)   $ 2  
2024     5  
2025     5  
2026     5  
2027     6  
Thereafter     256  
Total   $ 279