Note Receivable

The Company entered into the PSA dated

February 1, 2018,

for the sale of the Devens facility (including land, building and building improvements) located at

Jackson Road, Devens, Massachusetts to

Jackson, LLC, a limited liability company (subsequently assigned to Jackson

MGI, LLC) in the amount of

$23.0

million. The terms for payment included a

$1.0

million security deposit, and a note receivable for

$6.0

million payable to the Company with the remaining cash net of certain adjustments for closing costs at the date of settlement. The note receivable was due in

two

$3.0

million installments plus accrued interest at a rate of

1.96%

March 31, 2019

and

March 31, 2020.

The note was subordinate to East Boston Savings Bank's mortgage on the Devens property. The

first

installment was paid on

March 28, 2019

and the

second

installment was paid on

May 23, 2019.

The note receivable was discounted to its present value of

$5.7

million utilizing a discount rate of

6%,

which was based on management’s assessment of what an appropriate loan at current market rates would be. The

$0.3

million discount was recorded as an offset to the long term portion of the note receivable. In addition, the resulting gain of

$0.1

million from the sale of the Devens property which was deferred previously was recorded as a component of the cumulative effect of an accounting change upon the adoption of Accounting Standards Update ("ASU")

2017

Other Income - Gains and Losses from the Derecognition of Non-financial Assets (Subtopic

610

)

which was issued as a part of ASU

2014

Revenue from Contracts with Customers (Topic

606

)

. This gain was recorded as an offset to the opening accumulated deficit in the

three

months ended

June 30, 2018.

Note receivable as of

June 30, 2019

and

March 31, 2019

consisted of the following (in thousands):

Current assets	June 30, 2019		March 31, 2019
Note receivable, current	$	-	$	3,000
Note receivable discount		—		(112	)
Total current note receivable	$	-	$	2,888