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Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

19. Subsequent Events

 

Debt

 

The Company finalized an amendment with a lender to extend the maturity date of its promissory note payable of $0.5 million that matured in January 2022 to April 8, 2022. All other material terms of the Loan Agreement remain unchanged.

 

On February 4, 2022, the Company repaid $0.9 million of the secured credit facility with Live Oak, reducing the principal balance to $1.9 million at that date.

 

On February 28, 2022 Live Oak formally agreed to forbear enforcement of the Loan while the parties finalize a further extension of the maturity date. All other material terms of the Loan Agreement remain unchanged.

 

On March 21, 2022, the Company has entered into a definitive agreement with TQLA, LLC to accept a one year loan of $2.0 million with a conditional additional loan of $1.0 million and a conditional term extension of six months. The loan will bear interest at 9.25% and carry a commitment fee of 2.5%. In addition, the Company will issue a common stock purchase warrant to TQLA covering the loan amount with a common stock value of $1.20 per share.

 

Stock Issuances

 

On February 4, 2022, the Company issued 170,000 shares of common stock to its former Chief Executive Officer pursuant to his separation agreement under the 2016 Plan.

 

Other

 

On February 4, 2022, the Company sold 798 barrels of 95% rye whiskey ranging in age from three-year-old to eight-year-old for $1.5 million. The proceeds from the sale reduced debt outstanding with Live Oak as well as increased cash for working capital.