BORROWINGS

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Long term debt consists of the following (in thousands):

	March 31, 2022		December 31, 2021
Total notes payable	$	3,300	$	3,769
Less current portion of notes payable	1,817		1,900
Notes payable, non-current	$	1,483	$	1,869

Notes Payable

In 2018, the Company entered into a $1,000 thousand note payable with a bank that was secured by all property of the Company, except for its intellectual property. The note payable’s original maturity date was July 1, 2021.

In March 2020, the Company amended the note payable and borrowed an additional $4,000 thousand. The additional $4,000 thousand borrowing changed the present value of cash flows by more than 10% and, as such, was treated as a debt extinguishment. The Company recognized a $62 thousand loss on extinguishment of debt for the year ended December 31, 2021. The Company’s notes payable to the bank were recorded at fair value as part of the extinguishment. The $4,000 thousand note payable’s original maturity date was January 1, 2023.

In April 2020, the Company entered into a deferral agreement (“Deferral Agreement”) to extend the maturity date of the original $1,000 thousand note payable to September 1, 2022 and extend the maturity date of the additional $4,000 thousand note payable to January 1, 2024. The Company accounted for the Deferral Agreement as a debt modification based on an analysis of cash flows before and after the debt modification.

The notes payable bear interest at 0.50% below the bank’s prime rate (3.00% on March 31, 2022). The Company makes monthly interest and principal payments on the note payable based on the schedule defined in the agreement.