Annual report pursuant to Section 13 and 15(d)

Short-Term and Long-Term Debt

v3.20.1
Short-Term and Long-Term Debt
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Short-Term and Long-Term Debt

Note 6—Short-Term and Long-Term Debt

  

(in thousands)   As of
December 31,
2019		     As of
December 31,
2018		  
Promissory notes   $ 500     $ 500  
Current portion of long-term debt     —       12  
Total short-term borrowings and current portion of long-term debt   $ 500     $ 512  

 

Long-term debt consists of the following (in thousands):

  

(in thousands)   As of
December 31,
2019		     As of
December 31,
2018		  
Installment notes payable for equipment financing   $ —     $ 20  
Less: current portion     —       (12 )
Total long-term debt, net of current portion     —     $ 8  

 

The following is a summary of scheduled debt maturities by year (in thousands): 

 

2020   $ 500  
Total debt   $ 500  

  

On September 13, 2018, we entered into a Promissory Note and Mortgage and Security Agreement pursuant to which we borrowed the principal amount of $500 thousand from USA ReGrowth Fund LLC. At closing, we received $459,269 in net proceeds after closing costs and other fees and costs. The Promissory Note, repayment of which was initially due on March 13, 2019, was issued in an aggregate principal amount of $500 thousand and bore interest at a fixed rate of 12% per annum during the initial 120 days of the term of the Promissory Note, and a fixed rate of 30% per annum until all amounts due under the Promissory Note are paid in full. Pursuant to the Mortgage and Security Agreement, repayment of the Promissory Note is secured by a first mortgage on the property located at 1612 East Cape Coral Parkway, Cape Coral, FL. 33904. On March 8, 2019, we executed an extension of the maturity date to September 13, 2019. During the initial 120 days of the extension period, the Promissory Note bore interest at a fixed rate of 12% per annum and a fixed rate of 30% per annum thereafter until all amounts due thereunder are paid. On September 13, 2019, we executed a second extension of the maturity date to March 13, 2020. During the initial 120 days of the second extension period, the Promissory Note bears a fixed rate of 12% per annum and a fixed rate of 30% per annum thereafter until all amounts due thereunder are paid. The extension matures on March 13, 2020. Currently, we are negotiating a 60-day extension with the lender.

 

On January 21, 2019, we entered into a six-month Bridging Loan Agreement pursuant to which we borrowed the principal amount of £300 thousand (British Pounds) from D.J. Fatica Asset Management Ltd. The loan bears interest at a fixed rate of 12% per annum. The loan is secured by property owned by LEAI Properties UK Ltd. On July 15, 2019, we paid the loan off in full.