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Notes Receivable
6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Notes Receivable

NOTE 6. NOTES RECEIVABLE

 

As of June 30, 2022 and December 31, 2021, Notes receivable, net consisted of the following:

 

 

 

June 30,
2022

 

 

December 31,
2021

 

 

 

(in thousands)

 

Promissory note acquired from Harvest maturing in November 2025. Secured by certain assets.

 

$

8,491

 

 

$

8,827

 

Convertible note receivable dated November 2021 maturing in November 2024.

 

 

4,381

 

 

 

4,124

 

Promissory notes acquired from Harvest maturing in February 2022. Secured by certain assets.

 

 

 

 

 

850

 

Notes receivable

 

 

12,872

 

 

 

13,801

 

    Less: discount on notes receivable

 

 

(105

)

 

 

(124

)

      Total notes receivable, net of discounts

 

 

12,767

 

 

 

13,677

 

   Less: current portion of notes receivable

 

 

(644

)

 

 

(1,530

)

       Notes receivable

 

$

12,123

 

 

$

12,147

 

 

In October 2021, the Company acquired a note receivable with the Harvest acquisition. The note receivable was originally dated November 2020 maturing in November 2025. The note had an original principal balance of $12.0 million and accrues interest at a rate of 7.5% per annum with monthly interest and principal payments of $0.1 million.

 

In October 2021, the Company acquired notes receivable with the Harvest acquisition. The notes receivable was originally dated in February 2021 and matured in February 2022. The notes had an original principal balance of $0.9 million and accrue interest at a rate of 10% per annum with interest only payments due monthly. These notes were repaid in full in February 2022.

 

As part of the acquisition of Harvest, the Company acquired $9.8 million in notes receivable on October 1, 2021. There were no notes receivable outstanding prior to October 1, 2021.

 

See Note 4. Acquisitions for further details of the Harvest acquisition.

 

In November 2021, the Company entered into a convertible note receivable agreement for a principal amount of $4.1 million that matures in November 2024. The note accrues interest monthly at 9.75%, and accrued interest is added to the principal balance at each quarter end. The note is convertible to equity of the holder at the Company's option at any time prior to maturity. Further, the note was issued at a discount of 3% or $0.1 million, which is accreted to the note receivable balance over the term of the note.

 

During the three and six months ended June 30, 2022, the Company recorded interest income of $0.3 million and $0.7 million in other income (expense), net in the condensed consolidated statements of operations and comprehensive (loss) income, respectively. The Company had no accrued interest receivable as of June 30, 2022, and $0.1 million as of December 31, 2021, included in prepaid expenses and other current assets in the condensed consolidated balance sheets.

 

Stated maturities of notes receivable are as follows as of June 30, 2022:

 

 

 

Expected principal payments

 

 

 

(in thousands)

 

Remaining 2022

 

$

286

 

2023

 

 

728

 

2024

 

 

5,165

 

2025

 

 

6,693

 

2026

 

 

 

Thereafter

 

 

 

Total

 

 

12,872

 

Less: discount on notes receivable

 

 

(105

)

Total

 

$

12,767