NOTES RECEIVABLE, NET

3 Months Ended

Mar. 31, 2023

Notes receivable as of March 31, 2023 and December 31, 2022 consisted of the following:


	March 31, 2023		December 31, 2022
Promissory notes receivable	$	9,211	$	34,088
Line of credit receivable	4,331		5,831
Interest receivable	3,193		4,147
Allowance for notes and interest receivable	(15,246)		(14,875)
Total notes receivable	$	1,489	$	29,191
Less: Notes receivable, current	1,489		29,191
Notes receivable, non-current	$	—	$	—

Interest income on notes receivable during the three months ended March 31, 2023 and December 31, 2022 was $16 and $417, respectively.

At each reporting date, the Company applies its judgment to evaluate the collectability of the note receivable and makes a provision based on the assessed amount of expected credit loss. This judgment is based on parameters such as interest rates, market conditions and creditworthiness of the creditor.

The Company determined that the collectability of certain notes receivables is doubtful based on information available. As of March 31, 2023 and December 31, 2022, the Company’s allowance for notes receivable of $15,246 and $14,875, respectively, included $12,060 and $12,041 of principal outstanding and $3,186 and $2,834 of accrued interest, respectively, and represents the full value of such loan balances.

Activity during the three months ended March 31, 2023

In January 2023, the Company received a $250 cash payment in full on a promissory note receivable.

In January 2023, a subsidiary of the Company acquired cultivation, processing and retail operations in Maine from a third party who provided cultivation, manufacturing, processing, distribution and handling, recordkeeping, compliance, and other services to the Company’s operations in Maine and the amounts outstanding under the promissory notes receivable were converted into equity in Northeast Patients Group. Refer to Note 3 for further discussion.

Activity during the three months ended March 31, 2022

In February 2022, the Company received a $5,279 cash payment in full on a line of credit due from Patient Centric Martha’s Vineyard, and subsequently closed the line of credit.