Loans payable

9 Months Ended

Sep. 30, 2022

Loans payable

Loans payable

8. Loans payable

As of September 30, 2022 and December 31, 2021, loans payable consisted of the following (in thousands):

	September 30,		December 31,
	2022		2021
Loans from FFG	$	2,611	$	6,074
Unamortized debt discount		(418)		(1,063)
Total loans payable, net	$	2,193	$	5,011

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 a rate of 0.75% per annum and mature at various dates between March 2023 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.

A principal repayment of $2.8 million was made in the nine months ended September 30, 2022. No principal repayment was made in the nine months ended September 30, 2021.

As of September 30, 2022, the aggregate minimum future principal payments due in connection with the FFG Loans are summarized as follows (in thousands):

Payments Due by Calendar Year	Amount
2022 (remaining 3 months)		—
2023		1,574
2024		1,037
2025		—
2026		—
Thereafter		—
Total	$	2,611