Short-term Borrowings and Long-term Borrowings

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Borrowings

13. Short-term Borrowings and Long-term Borrowings

	December 31, 2022			December 31, 2021
Debtor finance	$	4,580		$	3,677
Other short-term borrowings		5,113			5,111
Current portion of long-term borrowings		371			332
Total short-term borrowings and current portion of long-term borrowings		10,064			9,120
Long-term bank borrowings		6,818			12,366
Other long-term borrowings		150			766
Total long-term borrowings		6,968			13,132
Less: current portion of long-term borrowings		(371	)		(332	)
Total long-term borrowings, excluding current portion		6,597			12,800
Total borrowings	$	16,661		$	21,920

As of December 31, 2022, the maturities of the long-term borrowings are as follows:

	USD
2023	$	371
2024		423
2025		474
2026		514
2027		5,052
Thereafter		134
	$	6,968

Debtor Finance

The Group’s subsidiary, SJ Australia, entered into debtor finance agreements with Scottish Pacific Group Limited(“Scottish Pacific” ) on March 18, 2018, whereby Scottish Pacific provided SJ Australia invoice discounting facility with a limit of 80% of outstanding invoices, at service fee charge of 0.13% based on the invoices processed, and discount fee charge of margin percentage of 1.1% above reference rate ( reference rate is around 7.86% and 6.76% during 2022 and 2021 respectively 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 end of each workday.

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 85% of outstanding invoices, 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. On December 28, 2022, SJ US settled all remaining loan balances and terminated debtor financing agreement with LSQ.

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”). 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 February 16, 2022, Phoenix obtained approval of forgiveness these PPP loans and recognized gains in the total amount of $586 in the consolidated statement of operations within other income for the year ended December 31, 2022.

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. On February 16, 2022, the Group obtained approval of forgiveness these PPP loans and recognized gains in the total amount of $4,508 in the consolidated statement of operations within other income for the year ended December 31, 2022.

There is no remaining balance of PPP loans as of December 31, 2022.

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, 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. On February 7, 2022, the Group entered into a supplementary agreement with East West Bank (“the Lender”), where by the loan was extended from February 23, 2022 to February 23, 2023. Subsequently on February 27, 2023, the Group has fully repaid this loan.

Long-term bank borrowing

As of December 31, 2022, long-term bank borrowings primarily represent: 1) a 10-year long term loan borrowed from Santander Bank in the amount of $5,068 (December 31, 2021: $5,918) with a maturity date of February 16, 2027, of which $3,794 is at interest rate of 3.96% per annum and $1,274 is at interest rate of 2.84% per annum, this loan is required to be repaid in installments. 2) a loan of SJ US borrowed from East West Bank with remaining balance of $1,750 (December 31, 2021: $1,940) with a maturity date of May 19 2027, at an interest rate of the greater of (a) 7.5% and (b) the sum of the Prime Rate for such day minus 0.2%.

The interest expense of bank loans were $1,256 and $1,214 for the years ended December 31, 2022 and 2021. The average interest rate on short-term borrowings was 10.96% and 9.02% per annum for the years ended December 31, 2022 and 2021, respectively.