NOTE 12. Notes Payable to Related Parties

Notes payable to related parties consisted of the following as of the dates presented (in thousands):

	September 30, 2018 (unaudited)		December 31, 2017 (audited)
Class B promissory notes	$	—	$	200
Class C promissory notes		—		667
0% promissory notes due 3/31/19		—		44
8% secured promissory notes due 3/31/19		—		1,050
8% promissory notes due 3/31/19		—		2,031
Promissory notes due 10/1/18		400		—
Total face amount		400		3,992
Less unamortized discount		—		(236	)
Total carrying value		400		3,756
Amount classified as current		400		441
Amount classified as long-term	$	—	$	3,315

On August 15, 2018, as described in Note 14, the Company entered into debt exchange agreements with all previous holders of related party promissory notes then outstanding, which resulted in an extinguishment of the related debt by conversion into common stock of the Company at market value of the securities with no gain or loss recognized.

On September 27, 2018, the Company issued a short-term promissory note in the amount of $400,000 payable to one of its executive officers. The note was due and repaid on October 1, 2018, together with a loan fee of $4,000.