Short-term Borrowings and Long-term Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Borrowings

14. Short-term Borrowings and Long-term Borrowings

	December 31, 2021			December 31, 2020
Debtor finance	$	3,677		$	2,789
Other short-term borrowings		5,111			204
Current portion of long-term borrowings		332			273
Total short-term borrowings and current portion of long-term borrowings		9,120			3,266
Long term bank borrowings		12,366			6,573
Other long-term borrowings		766			55
Total long-term borrowings		13,132			6,628
Less: current portion of long-term borrowings		(332	)		(273	)
Total long-term borrowings, excluding current portion		12,800			6,355
Total borrowings	$	21,920		$	9,621

As of December 31, 2021, the maturities of the long-term borrowings are as follows:  

	USD
2022	$	332
2023		411
2024		470
2025		517
2026		5,656
Thereafter		5,746
	$	13,132

Debtor Finance

The Group’s subsidiary, SJ Australia, entered into debtor finance agreements with Scottish Pacific on March 18, 2018, whereby Scottish Pacific provided SJ Australia invoice discounting facility with a limit of $5,624, at service fee charge of 0.13% based on the invoices processed, and discount fee charge of margin percentage minus 0.59% (margin percentage is around 6.76% during 2021 and 2020) based on the average daily debtor finance balance. The accounts receivable collection of SJ Australia was automatically transferred to Scottish Pacific for the debtor finance repayment at the ending of each work day.

The Group’s subsidiary, SJ US, entered into debtor finance agreement with LSQ on February 24, 2021, whereby LSQ provided SJ US invoice discounting facility with a limit of $11,000, at funds usage daily fee of 0.0222% to 0.0333% per day based on the average amount of balance. LSQ shall maintain a reserve account from which to make advances to SJ US. Debtors of SJ US will pay directly to the account established by LSQ for repayment.

PPP Loan

On May 5, 2020, Phoenix was granted a loan from Zions Bancorporation, N.A. dba California Bank & Trust in the aggregate amount of $551, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted on March 27, 2020 (the “PPP Loan”). The amount that will be forgiven will be calculated in part with reference to the Phoenix’s full time headcount during the eight week period following the funding of the PPP Loan. On October 21, 2020, Phoenix received approval from the lender for the formal forgiveness of the PPP Loan. As a result, a gain in the amount of $551 has been recognized in the consolidated statement of operations within other income for the year ended December 31, 2020. On January 24, 2021, Phoenix was granted a second PPP loan in the amount of $586 from the lender.

On April 8, 2020, SPI Solar Inc., a subsidiary of the Group, was granted a PPP loan in the amount of $163. On April 12, 2020, Knight Holding Corporation, another subsidiary of the Group, was granted a PPP loan in the amount of $42. Both of the loans were granted by East West Bank in the form of a promissory note with term of one year. The Group obtained approval of forgiveness these PPP loans and recognized gains in the total amount of $205 in the consolidated statement of operations within other income for the year ended December 31, 2021.

On May 18, 2021, SJ US was granted a PPP loan from East West Bank in the amount of $4,508, which was in the form of a promissory note, maturing on May 17, 2026. The Group submit the application for forgiveness in November 2021 and assessed that it qualified for the forgiveness the PPP loan.

All PPP loans are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves, rent, utilities, and interest on certain other outstanding debt. All PPP loans bear interest at a rate of 1.00% per annum, payable monthly commencing on the date that is seven months after the date of the loan. The PPP loans may be prepaid at any time prior to maturity with no prepayment penalties.

EIDL Loan

On May 26, 2020, Phoenix was granted a loan from the U.S. Small Business Association in the aggregate amount of $150, pursuant to the Economic Injury Disaster Loan under Section 7(b) of the Small Business Act, as amended (the “EIDL Loan”).

The EIDL Loan, which was in the form of a promissory note (the “EIDL Note”) dated May 26, 2020 issued by the Phoenix, matures on May 26, 2050 and bears interest at a rate of 3.75% per annum, payable monthly commencing on May 26, 2021. The EIDL Note may be prepaid at any time prior to maturity with no prepayment penalties. Funds from the EIDL Note may only be used for working capital purposes to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter cause by the coronavirus pandemic. Phoenix has used the entire EIDL Note amount for what management believes to be qualifying expenses.

EWB Loan

On February 24, 2021, SJ US was granted a loan from the East West Bank in the amount of $5,000 with a maturity date of February 23, 2022 (the “EWB loan”), at an interest rate of 3.25% per annum, which is secured by the deposit of $5,000 from SPI Group Holding Co., Ltd.

Long term bank borrowing

As of December 31, 2021, long term bank borrowings primarily represent: 1) a 10-year long term loan borrowed from Santander Bank in the amount of $5,918 (December 31, 2020: $6,217) with a maturity date of February 16, 2027, of which $4,426 is at interest rate of 3.96% per annum and $1,492 is at interest rate of 2.84% per annum, this loan is required to be repaid in installments. 2) On August 19, 2021, Ohau SPE 101-1 LLC entered into a loan agreement with East West Bank (“EWB”), whereby EWB provided $1,940 loan to Solarjuice American, with a maturity date of May 19, 2027, at an interest rate of the greater of (a) 3.05% and (b) the sum of the Prime Rate for such day minus 0.2%. 3) the PPP loan granted to SJ US from East West Bank in the amount of $4,508 with a maturity date of May 17, 2026.

The interest expense of bank loans were $1,214, $491 and $544 for the years ended December 31, 2021, 2020 and 2019. The average interest rate on short term borrowings was 9.02%, 5.30% and 7.97% per annum for the years ended December 31, 2021, 2020 and 2019, respectively.