Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 8 – Debt

The Company’s outstanding debt is shown in the following table:

	Maturity dates	Interest rates	September 30, 2022		December 31, 2021
Term loans secured by all assets	04/2023 - 11/2030	3.25 - 6.00%	$	11,450,980	$	15,613,564
Term loans secured by property and equipment	01/2024 - 10/2029	4.19 - 6.90%		7,047,694		11,190,093
Line of credit secured by all assets	10/2022 - 01/2023	4.50 - 6.50%		2,592,714		72,055
Term loans of consolidated Real Estate Entities	08/2023 - 03/2037	3.59 - 4.80%		10,330,561		62,478,951
Total				31,421,949		89,354,663
Less: unamortized debt issuance costs				111,820		301,691
Less: short-term lines of credit				2,592,714		72,055
Less: current portion of long-term debt				4,026,942		10,158,932
Total long-term debt			$	24,690,473	$	78,821,985

Term loans and lines of credit. We have entered into private debt arrangements with banking institutions for the purchase of equipment and to provide working capital and liquidity through cash and lines of credit. Unless otherwise delineated above, these debt arrangements are obligations of Nutex and/or its wholly-owned subsidiaries. Consolidated Real Estate Entities have entered into private debt arrangements with banking institutions for purposes of purchasing land, constructing new emergency room facilities and building out leasehold improvements which are leased to our hospital entities. Nutex is a guarantor or, in limited cases, a co-borrower on the debt arrangements of the Real Estate Entities for the periods shown. During the second quarter of 2022, we deconsolidated 17 Real Estate Entities after the third-party lenders released our guarantees of associated mortgage loans.

Certain outstanding debt arrangements require minimum debt service coverage ratios and other financial covenants. At September 30, 2022, we were not in compliance with the debt service coverage ratio for one revolving line of credit with an outstanding balance of $1.0 million. This balance has been included in current liabilities. At September 30, 2022, we had remaining availability of $1.658 million under outstanding lines of credit.

Convertible notes payable. We assumed $5,415,375 principal amount of convertible notes payable of Clinigence outstanding at the merger date. The convertible notes payable were fully converted into 3,474,430 shares of common stock at a conversion price of $1.55 per share before their maturity on July 31, 2022. Debt discount totaling $1,719,572 was accreted over four months to the maturity date of the convertible notes payable.