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FINANCING ARRANGEMENTS
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
FINANCING ARRANGEMENTS FINANCING ARRANGEMENTS
Insurance Premiums
The Company financed insurance premiums through various financial institutions bearing interest rates from 3.49% to 4.09% per annum. All such premium finance agreements have maturities of less than one year and have a balance of $1,008,621 at March 31, 2022 and $2,375,071 at December 31, 2021.

Finance Leases

On May 22, 2020, the Company entered into one finance lease. Payments are $15,078 per month for three years and the amount of the finance lease obligation has been reduced to $263,065 at March 31, 2022.

The Company's outstanding debt facilities as of March 31, 2022 and December 31, 2021 are summarized as follows:
CreditorLoan TypeOrigination DateMaturity DateLoan AmountBalance on March 31, 2022Balance on December 31, 2021
John Deere NoteNoteMay 27, 2020June 24, 2024$152,643 $84,537 $94,005 
AVT Equipment Lease-HHFinance LeaseMay 22, 2020May 22, 2023$551,609 263,065 302,166 
SBA LoanSBA LoanJuly 18, 2020July 18, 2050$58,700 58,700 58,700 
Various institutions Insurance premiums financed Various< 1 year $5,604,748 1,008,621 2,375,071 
Total$1,414,923 $2,829,942 


Future contractual maturities of notes payable as of March 31, 2022 are summarized as follows:
CreditorYear 1Year 2Year 3Year 4Year 5Thereafter
John Deere Note$38,460 $39,414 $6,663 $— $— $— 
AVT Equipment Lease-HH263,065 — — — — — 
SBA Loan— 1,266 1,315 1,365 1,417 53,337 
Various institutions 1,008,621 — — — — — 
Totals$1,310,146 $40,680 $7,978 $1,365 $1,417 $53,337 

Indenture and Convertible Senior Notes
On November 1, 2021, we issued $155.0 million aggregate principal amount at maturity of our 6.25% Convertible Senior Notes due 2027 (the “Convertible Senior Notes”) pursuant to an Indenture (the “Indenture”), dated November 1, 2021, between the Company and U.S. Bank National Association, as trustee (the “Trustee”), in a private offering (the “Note Offering”) to persons reasonably believed to be “qualified institutional buyers” and/or to “accredited investors” in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Securities Purchase Agreements. The issue price is 90% of the face amount of each note. Interest payments on the Notes are paid semiannually on April 1 and October 1 of each year, beginning on April 1, 2022. On April 1, 2022, a total of $4,036,458 of interest was paid on our outstanding Convertible Senior Notes.
A total of seventy-five percent (75%) of the net proceeds from the offering were placed into an escrow account to be released to the Company, upon the satisfaction of certain conditions, including the satisfaction or waiver of all of the conditions precedent to the Company’s obligation to consummate the Mobile Acquisition (collectively, the “Escrow Release Conditions”). The Mobile Acquisition was consummated on April 1, 2022, and the proceeds from the sale of the Convertible Senior Notes which were held in escrow were released on April 1, 2022.
Prior to July 1, 2027, the Convertible Senior Notes will be convertible at the option of the holders of the Convertible Senior Notes only upon the satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election, provided that until such time as the Company’s stockholders have approved the issuance of more than 19.99% of our common stock issuable upon conversion of the Convertible Senior Notes in accordance with the rules of The Nasdaq Capital Market.
Initially, a maximum of 36,214,960 shares of common stock may be issued upon conversion of the Convertible Senior Notes, based on the initial maximum conversion rate of 233.6449 shares of the Company’s common stock per $1,000 principal amount of Convertible Senior Notes, which is subject to customary and other adjustments described in the Indenture.
On January 20, 2022, our shareholders approved the issuance of shares of our common stock issuable upon conversion of the Convertible Senior Notes, in accordance with Nasdaq Listing Rules 5635 (a) and (d). Accordingly $79 million of derivative Convertible Senior Note liabilities were reclassified to additional paid in capital.
The components of the Convertible Senior Notes are presented as follows:
March 31, 2022
Principal Amounts$155,000,000 
Unamortized discount and issuance costs(89,213,315)
Net Carrying Amount$65,786,685 
Our Convertible Senior Notes will mature on October 1, 2027, unless earlier repurchased, redeemed or converted. Interest is payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2022. The following table represents the future interest payment.
Interest payableYear 1Year 2Year 3Year 4Year 5Thereafter
Interest payable$9,687,500 $9,714,041 $9,687,500 $9,687,500 $9,687,500 $4,857,021