Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

DEBT

NOTE 14 DEBT

Debt consisted of the following as of June 30, 2022 and December 31, 2021:

			June 30, 2022						December 31, 2021
(Amounts in thousands)	Note Reference	Original Maturity Date	Amount Outstanding			Interest Rate			Amount Outstanding			Interest Rate
Secured Notes Payable
Secured senior convertible note payable	A	5/27/23	$	3,571			6.0	%	$	6,417			6.0	%
Secured senior convertible note payable	B	8/25/23		3,722			6.0	%		4,833			6.0	%
Secured note payable	C	11/26/21		500			9.0	%		1,000			9.0	%
Secured note payable	D	1/29/22		-			0.0	%		5,205			>8% or Libor +6.75	%
Total secured notes payable				7,793						17,455
Notes Payable
Notes payable	E	3/31/23		100			3.0	%		-			3.0	%
Notes payable	F	7/29/22		550			0.0	%		-			0.0	%
PPP loans	G	5/5/22		-			1.0	%		2			1.0	%
SBA loan	H	5/15/50		143			3.8	%		150			3.8	%
Total notes payable				793						152
Convertible Notes Payable
Convertible note payable	I	6/3/22		-			5.0	%		600			5.0	%
Convertible note payable	J	1/29/26		11,150			3.3	%		11,150			1.0	%
Total convertible notes payable				11,150						11,750
Total long-term debt				19,736						29,357
Less: unamortized discounts and debt issuance costs				(2,360	)					(3,518	)
Total long-term debt, less discounts and debt issuance costs				17,376						25,839
Less: current portion of long-term debt				(11,467	)					(13,566	)
Debt classified as long-term debt			$	5,909					$	12,273

Lind Debt

For Notes A and B (the “Lind Debt”), on or about April 15, 2022, as a result of the Company not filing its Annual Report on Form 10-K for the year ended December 31, 2021 on a timely basis, the Lind Debt entered into default, which resulted in a 5% or $0.4 million increase in the principal value, pursuant to the terms of the Lind Debt. The default also enabled the note holders, upon notice to the Company, to periodically convert a portion of the associated principal and accrued interest into common stock at a 20% discount to the three lowest daily volume-weighted-average-prices during the prior twenty trading days (“Note Holder Conversions”).

For the Lind Debt, during the six months ended June 30, 2022, the principal amount was reduced by an aggregate of $4.0 million, which was comprised of (a) a reduction of an aggregate of $1.9 million (plus interest) due to pre-default scheduled cash payments; (b) a reduction of an aggregate of $1.9 million (plus interest) due to pre-default scheduled equity payments (at the Company’s discretion, in lieu of cash) comprising 3,530,042 shares of common stock; (c) an increase of an aggregate of $0.4 million (as discussed above) due to the debt’s contractual default provisions; and (d) a reduction of an aggregate of $0.6 million of principal due to Note Holder Conversions into an aggregate of 4,586,835 shares of the Company’s common stock.

See Note 21 – Subsequent Events – Debt and Equity Developments for information related to subsequent Note Holder Conversions. The subsequent Note Holder Conversions enabled the June 30, 2022 outstanding principal of the Lind Debt (and the related debt discounts) and $0.9 million of Note J to be fully reclassified from current to long term.

Other Debt

For Note C, during the six months ended June 30, 2022, past due principal of $0.5 million was repaid in cash.

For Note D (the Tucson building mortgage), during the six months ended June 30, 2022, the principal of $5.2 million was repaid in cash from the proceeds of the January 31, 2022 building sale.

For Note E, on April 1, 2022, the Company entered into a note agreement with a related party who is an Executive Officer of the Company for cash proceeds of $100,000 with a maturity date of March 31, 2023 and an interest rate of 3%. As of June 30, 2022, the proceeds were recorded as a related party note in current liabilities.

For Note F, on or about April 29, 2022, the Company sold an original issue discount note with a face value of $550,000 to an investor for the purchase price of $500,000. This note was due approximately July 29, 2022 and bears a default rate of 12% after the maturity date. On July 26, 2022, the Company received notice from the promissory note holder that the promissory note in the principal amount of $550,000 was due. As of the date of this filing, this note remains outstanding. On May 9, 2022, in connection with the note issuance, the Company issued 240,000 shares of common stock to an advisor pursuant to an advisory agreement dated April 29, 2022.

For Note G, during the six months ended June 30, 2022, principal of $2,000 was repaid in cash.

For Note H, during the six months ended June 30, 2022, principal of $7,000 was repaid in cash.

For Note I, on June 23, 2022, the Company reached an agreement to cancel the note comprised of principal of $600,000 and interest of $40,000 in exchange for the return of certain patents. See Note 20 – Other Business Developments for additional information.

For Note J, on May 24, 2022, the Company received notice from counsel for holders of $11.2 million of convertible promissory notes issued in connection with the acquisition of Fastback that the Company had failed to file its Annual Report on Form 10-K in a timely manner, as required by the terms of the convertible promissory notes. While the note holders have the right to accelerate the maturity of the principal, the notice simply indicated that the holders were reserving their rights.

Future maturities contractually required by the Company under debt obligations are as follows as of June 30, 2022:

(Amounts in thousands)	Total
Remaining 2022	$	19,493
2023		100
2024		-
2025		-
2026		-
Thereafter		143
Total	$	19,736

During the three and six months ended June 30, 2022, the Company recognized $1.3 million and $2.2 million of interest expense in connection with the aforementioned indebtedness, which includes the $0.4 million Lind Debt default charge during both periods. During the three and six months ended June 30, 2021, the Company recognized $0.5 million and $1.0 million of interest expense in connection with the aforementioned indebtedness.