Loans Receivable and Loans Receivable - Related Parties

12 Months Ended

Dec. 31, 2020

Loan Receivable [Abstract]

Loans Receivable and Loans Receivable – Related Parties

Loans Receivable and Loans Receivable – Related Parties

Loans Receivable

Dr. Albert Arteaga

On June 28, 2019, APC entered into a convertible secured promissory note with Dr. Albert H. Arteaga, M.D. ("Dr. Arteaga"), Chief Executive Officer of LMA, to loan $6.4 million to Dr. Arteaga. Interest on the loan accrues at a rate that is equal to the prime rate plus 1% (4.25% as of December 31, 2020) and payable in monthly installments of interest only on the first day of each month until the maturity date of December 31, 2020, at which time, all outstanding principal and accrued interest thereon shall be due and payable in full. The note is secured by certain shares of LMA common stock held by Dr. Arteaga.

At any time on or before December 31, 2020 and upon written notice by APC to Dr. Arteaga, APC has the right, but not the obligation, to convert the entire outstanding principal amount of this note into shares of LMA common stock which equal 21.25% of the aggregate then-issued and outstanding shares of LMA common stock to be held by APC's designee, which may include APC-LSMA. If converted, APC-LSMA and APC's designee will collectively own 46.25% of the equity of LMA with the remaining 53.75% to be owned by Dr. Arteaga. In December 2020 APC elected to convert the promissory note which resulted in an increase of 21.25% in its investment in LMA. The additional interest was reclassified as additional equity

investment totaling $6.4 million. We further noted that there was no observable price movement and no indication of impairment as of and for the year ended December 31, 2020.

On February 28, 2020, the Company entered into an agreement to advance Dr. Arteaga $2.2 million in the ordinary course of business. As of December 31, 2020, the $2.2 million was fully repaid.

Pacific6

On October 30, 2020, NMM received a promissory note from Pacific6 totaling $0.5 million as a result of the sale of the Company's interest in MWN. Interest accrues at a rate of 5% per annum and is payable monthly through the maturity date of December 1, 2023.

Loan Receivable - Related Parties

AHMC

In October 2020, APC entered into a promissory note with AHMC, a related party of the Company, (the “AHMC Note”) for a principal sum of $4.0 million with a maturity date of two years from the date of the agreement. The contractual interest rate on the AHMC Note is 3.75% per annum. The AHMC Note was entered into using cash strictly related to the Excluded Assets that were generated from the series of transactions with AP-AMH. As of December 31, 2020, the total principal of $4.0 million remains outstanding.

The Company assessed the outstanding loan receivable and loan receivable - related parties under the CECL model by assessing the party's ability to pay by reviewing their interest payment history quarterly, financial history annually and reassessing any insolvency risk that is identified. If a failure to pay occurs, the Company assesses the terms of the notes and estimates an expected credit loss based on the remittance schedule of the note. No losses were recorded for loan receivable and loan receivable - related parties as of December 31, 2020.