Notes Receivable from Third Parties

12 Months Ended

Dec. 31, 2022

The following table provides certain information related to notes receivable consists of the following (in thousands):


	As of December 31, 2022
	Cost		Interest		Unrealized Gains		Unrealized Losses		Impairment		Estimated Fair Value
VIA Note (a)	$	63,218	$	2,603	$	—	$	—	$	(34,213)	$	31,608
VIA Note 2 (a)		14,468		233		—		—		(14,701)		—
Inobat Note (b)		11,819		863		—		(1,083)		(11,599)		—
Timios (c)		—		—		—		—		—		—
Green Power Motor Company (d)		45		—		—		—		—		45
Total notes receivable	$	89,550	$	3,699	$	—	$	(1,083)	$	(60,513)	$	31,653


	As of December 31, 2021
	Cost		Interest		Unrealized Gains		Unrealized Losses		Impairment		Estimated Fair Value
VIA Note (a)	$	42,500	$	578	$	—	$	—	$	—	$	43,078
Inobat Note (b)		11,819		10		—		—		—		11,829
Total notes receivable	$	54,319	$	588	$	—	$	—	$	—	$	54,907

(a)VIA Convertible Promissory Note

On August 30, 2021, the Company invested $42.5 million in VIA, in the form of a convertible promissory note. VIA is a leading electric commercial vehicle company with proven advanced electric drive technology, delivering sustainable mobility solutions for a more livable world. VIA designs, manufactures and markets electric commercial vehicles, with superior life-cycle economics, for use across a broad cross-section of the global fleet customer base.

As of December 31, 2022, the principal amount of the convertible promissory note was $63.2 million, the note was secured by the certain assets and rights of VIA, bore interest at an annual rate of 4.0% and the scheduled maturity date was the earlier of the closing date of the acquisition or one year after the agreement is terminated according to its terms.

The convertible promissory note contained certain customary events of default and other rights and obligations of the parties. The company expects to convert this promissory note in conjunction with the closing of the acquisition of VIA. Management assessed the probability of closing the acquisition in determining the recoverability of the promissory note.

The Company entered into a secured promissory note (VIA Note-2) of $2.2 million with VIA on May 20, 2022. The Company entered into an amendment of the secured promissory note during the second quarter of 2022 to provide an additional $5.1 million. The company entered into further amendments during the third quarter of 2022 to provide a total of an additional $4.4 million and additional amendments in the fourth quarter of 2022 to provide an additional $4.6 million, bringing the total payable under the note as of December 31, 2022 to $16.3 million. The note was secured by the certain assets and rights of VIA, bore interest at an annual rate of 4.0%. The principal and interest is due and payable in the event of the termination of the merger agreement.

The company experienced significant delays in the closing of the acquisition of VIA and in the fourth quarter of 2022 withdrew the S-4 resulting in an inability to close the acquisition in the manner originally contemplated. Consequently, the outstanding balances were re-evaluated as to recovery and the balances adjusted to estimated recovery values inclusive of the risks associated with the consummation of the acquisition and the credit risks in the event of an unsuccessful closing.

(b)Inobat Convertible Promissory Note

On December 24, 2021, the Company invested €10.0 million ($11.4 million) in Inobat via a convertible promissory note, was due December 24, 2022. Inobat specializes in the research, development, manufacture, and provision of innovative electric batteries custom-designed to meet the specific requirements of global mainstream and specialist OEMs within the automotive, commercial vehicle, motorsport, and aerospace sectors. Inobat is a European based battery manufacturer, that has a battery research and development facility and pilot line under development in Slovakia.

The principal amount of the convertible promissory note is €10.0 million ($11.4 million) is unsecured, bears interest at an annual rate of 8.0%, and the scheduled maturity date is December 28, 2022.

The convertible promissory note contains certain customary events of default and other rights and obligations of the parties.

The loan due from Inobat matured in December 2022 without any receipt of payment, in March 2023, the company extended the maturity date of the loan to May 2023 The Company determined that the Inobat note was fully impaired and recorded an impairment loss of $11.6 million recorded in "Asset impairments" in the year ended December 31, 2022.

(c)Timios Promissory Note

During the first quarter of 2022, Timios purchased mortgage notes at a fair value of $0.5 million, the notes bear interest of 3.5% and 4.875%. The notes mature August 2043 and December 2049. Installments for the loans are approximately $3,000.

In the fourth quarter of 2022, Timios sold the mortgage notes for $0.3 million, this resulted in a loss of $0.2 million in the year ended December 31, 2022.

(d)Green Power Motor Company

On July 29, 2022, the Company loaned $43,500, to Green Power Motor Company. Interest will accrue on the outstanding principal at a rate of fixed interest rate per annum equal to 7.50%. Borrower will make 80 consecutive monthly payments commencing on September 1, 2022.