Original

Borrowing

Balance at

June 30,

2022

Balance at

December 31,

2021

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 June 30, 2022, and December 31, 2021, the outstanding balance of the note amounted to $150, respectively.

On January 12, 2022, the Company entered into the Note Offering, which provided for the sale and issuance of an aggregate original principal amount of $6,300 in convertible notes due 2023. 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.

The Company received $6,000 in gross proceeds from the sale of the Notes. The Notes bear interest of 6.0% per annum, have an original issue discount of 5.0%, mature 12 months from the closing date, and have an initial conversion price of $3.00, subject to adjustment in certain circumstances as set forth in the Notes.

In connection with the Note Offering, the Company incurred $460 of debt issuance costs. The debt issuance costs and the debt discount of $300 are being amortized over the term of the Notes using the effective interest rate method. During the six months ended June 30, 2022, the Company amortized $172 of debt discount and $264 of debt issuance costs. As of June 30, 2022, the amount of unamortized debt discount and debt issuance costs was $128 and $196, respectively.

As of June 30, 2022, and December 31, 2021, the outstanding balance of the Notes amounted to $4,404, and $0, respectively. During the six months ended June 30, 2022, the Company repaid $1,896 in principal payments pursuant to the Note Holders pursuant to the Notes.

Beginning on May 12, 2022, the Company was required to make nine monthly principal payments of $246, plus accrued interest, to the Note Holders, with the remaining principal amount of $2,436, plus accrued interest, due on the maturity date. The Note Holders agreed to allow the Company to defer the payment originally due on June 12, 2022 and to instead increase the amount of the principal payments required to be made beginning on July 12, 2022 to $281, with the remaining principal amount of $2,436, plus accrued interest, due on the maturity date. There was no change in the aggregate amount of indebtedness as a result of this payment deferral.