NOTES PAYABLE

12 Months Ended

Dec. 31, 2024

Notes Payable

NOTES PAYABLE

14. NOTES PAYABLE

Notes payable consisted of the following as of December 31:

(Dollars in thousands)	2024			2023
Promissory notes	$	-		$	7,990
Notes payable - 2024		3,600			-
Note payable - 2023		500			-
Term loan agreement		275			-
Total		4,375			7,990
Accrued interest		269			52
Debt discount		(651	)		-
Notes payable, net	$	3,993		$	8,042

On April 1, 2021, Eastside entered into promissory notes of $7.8 million with the Investors bearing interest of 6.0%. The notes had an original maturity of April 2024. Accrued interest was paid in accordance with a monthly amortization schedule. These notes were converted or exchanged as part of the Debt Exchange Agreement on October 7, 2024, further described above in Note 5 - Debt Exchange Agreement.

During 2024, the Company issued notes payable of $3.6 million maturing September 5, 2025 with payments made in nine equal monthly installments of $0.4 million beginning January 2025. As of December 31, 2024, the principal balance was $3.6 million, accrued interest was $0.2 million and unamortized debt discount were $0.6 million.

During 2023, the Company issued a note payable for proceeds of $0.5 million, net of offering costs. However, this balance is not included in the 2023 consolidated balance sheet due to the Merger closing October 7, 2024, see Note 4 – Merger. Interest accrues at 18.0% per annum and interest-only payments are made monthly. This loan matured December 2024. As of December 31, 2024, the principal balance was $0.5 million and accrued interest was $0.1 million. See Note 25 – Subsequent Events.

On April 29, 2021, the Company and Beeline Loans entered into a term loan agreement with the Business Development Company of Rhode Island for $0.3 million which was originally to mature on April 29, 2026 with an interest rate of 6.0%. The loan was amended in June 2024 to accelerate the maturity to June 21, 2024, and to change the personal guarantees from two guarantors to solely the Company’s Chief Executive Officer, as the guarantor. The Company made interest-only payments during 2024 and one principal payment of $25,000. As of December 31, 2024, the principal balance was $0.3 million, accrued interest was $2,529 and unamortized debt discount was $4,659. The Company is in current discussions with a lender to repay the note payable that became past due on June 21, 2024, see Note 25 – Subsequent Events. This balance is not included in the 2023 consolidated balance sheet due to the Merger closing October 7, 2024, see Note 4 – Merger.