7. Loans payable

As of March 31, 2020 and December 31, 2019, loans payable consisted of the following (in thousands):


	March 31,		December 31,
	2020		2019
Loans from FFG	$	5,912	$	7,305
Unamortized debt discount		(2,326)		(2,586)
Total Loans payable, net	$	3,586	$	4,719

Note: The short-term portion of the loans is included in other current liabilities.

In connection with the funding agreements with the Austrian Research Promotion Agency, (Österreichische Forschungsförderungsgesellschaft, or “FFG”), the Company has received various loans (“FFG Loans”). The FFG Loans were made on a project-by-project basis. Amounts due under the FFG Loans bear interest at rates ranging from 0.75% to 1.0% per annum and mature at various dates between June 2022 and March 2024. Interest on amounts due under the loans is payable semi-annually in arrears, with all principal and remaining accrued interest due upon maturity.

The FFG Loans bear interest at rates that are below market rates of interest. The Company accounts for the imputed benefit arising from the difference between an estimated market rate of interest and the rate of interest charged by FFG as grant income from FFG. On the date that FFG loan proceeds are received, the Company recognizes the portion of the loan proceeds allocated to grant funding as a discount to the carrying value of the loan and as unearned income, which is recognized as grant income over the term of the funding agreement.

In November 2019, the Company agreed to an earlier repayment schedule for $3.3 million of the outstanding loans with FFG. As a result of the change, the Company reduced the deferred income attributable to the imputed benefit from below market interest by $0.3 million and increased the carrying value of the loans by the same amount.

A principal repayment of $1.3 million was made in the three months ended March 31, 2020. There were no principal payments due or paid under the FFG Loans during the three months ended March 31, 2019.