Verb Technology Company, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2022

SCHEDULE OF NOTES PAYABLE RELATED PARTIES

The Company has the following outstanding notes payable as of March 31, 2022 and December 31, 2021:

Note	Issuance Date	Maturity Date	Interest Rate			Original Borrowing		Balance at March 31, 2022			Balance at December 31, 2021
Related party note payable (A)	December 1, 2015	April 1, 2023		12.0	%	$	1,249	$	725		$	725
Related party note payable (B)	April 4, 2016	June 4, 2021		12.0	%		343		40			40
Note payable (C)	May 15, 2020	May 15, 2050		3.75	%		150		150			150
Notes payable (D)	January 12, 2022	January 12, 2023		6.0	%		6,300		6,300			-
Debt discount									(226	)		-
Debt issuance costs									(347	)		-
Total notes payable									6,642			915
Non-current									(875	)		(875	)
Current								$	5,767		$	40

	(A)	On December 1, 2015, the Company issued a convertible note payable to Mr. Rory J. Cutaia, the Company’s majority stockholder and Chief Executive Officer, to consolidate all loans and advances made by Mr. Cutaia to the Company as of that date. On May 12, 2022, the maturity date of the note was extended to April 1, 2023. As of March 31, 2022, and December 31, 2021, the outstanding balance of the note amounted to $725, respectively.

	(B)	On April 4, 2016, the Company issued a convertible note payable to Mr. Cutaia, in the amount of $343, to consolidate all advances made by Mr. Cutaia to the Company during the period December 2015 through March 2016. As of March 31, 2022 and December 31, 2021, the outstanding balance of the note amounted to $40, respectively.

(C)

On May 15, 2020, the Company executed an unsecured loan with the U.S. Small Business Administration (SBA) under the Economic Injury Disaster Loan program in the amount of $150. Installment payments, including principal and interest, will begin on October 15, 2022. As of March 31, 2022, and December 31, 2021, the outstanding balance of the note amounted to $150, respectively.

(D)

On January 12, 2022, the Company entered into a securities purchase agreement with three institutional investors (collectively, the “Note Holders”) providing for the sale and issuance of an aggregate original principal amount of $6,300 in convertible notes due 2023 (each, a “Note,” and, collectively, the “Notes,” and such financing, the “Note Offering”). The Company and the Note Holders also entered into a security agreement, dated January 12, 2022, in connection with the Note Offering, pursuant to which the Company granted a security interest to the Note Holders in substantially all of its assets. There are no financial covenants related to these notes payable.

SCHEDULE OF INTEREST EXPENSE

The following table provides a breakdown of interest expense:

SCHEDULE OF INTEREST EXPENSE

	2022			2021
	Three Months Ended March 31,
	2022			2021

Interest expense – amortization of debt discount	$	(536	)	$	(475	)
Interest expense – amortization of debt issuance costs		(113	)		-
Interest expense – other		(107	)		(33	)

Total interest expense	$	(756	)	$	(508	)