Quarterly report pursuant to Section 13 or 15(d)

ADVANCES ON FUTURE RECEIPTS

v3.23.3
ADVANCES ON FUTURE RECEIPTS
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
ADVANCES ON FUTURE RECEIPTS

6. ADVANCES ON FUTURE RECEIPTS

 

As a result of the sale, the Company has eliminated any amounts related to advances on future receipts as part of its presentation of continuing operations The Company has the following advances on future receipts as of September 30, 2023 and December 31, 2022:

 

Note   Issuance Date   Maturity Date   Interest Rate     Original Borrowing    

Balance at September 30,

2023

    

Balance at December 31,

2022

  
                                 
Note 1   August 25, 2022   May 11, 2023     26 %   $ 3,400     $ -     $ 1,782  
Note 2   October 25, 2022   April 26, 2023     30 %     322       -       207  
Note 3   February 16, 2023   December 14, 2023     35 %     2,108             269       -  
Total                   $ 5,830       269       1,989  
Debt discount                             (41 )     (311 )
Debt issuance costs                             (9 )     (37 )
Net                           $ 219     $ 1,641  

 

 

Note 1

 

On August 25, 2022, the Company received secured advances from an unaffiliated third party totaling $2,500 for the purchase of future receipts/revenues of $3,400, resulting in a debt discount of $900. The Company also paid $100 of debt issuance costs. The debt discount and debt issuance costs were being amortized over the term of the secured advance using the effective interest rate method. As of December 31, 2022, the outstanding balance of the note was $1,782 and the unamortized balance of the debt discount and debt issuance costs were $267 and $30, respectively. During the nine months ended September 30, 2023, the Company paid $643 and amortized $155 and $17 of the debt discount and debt issuance costs, respectively. On February 16, 2023, the Company agreed to combine the unpaid balance with a new advance, see Note 3 below. The unamortized amounts of debt discount and debt issuance costs of $112 and $13, respectively, were written off as part of the accounting for loss from discontinued operations.

 

Note 2

 

On October 25, 2022, the Company received secured advances from an unaffiliated third party totaling $225 for the purchase of future receipts/revenues of $322, resulting in a debt discount of $97. The Company also paid $16 of debt issuance costs. The debt discount and debt issuance costs were being amortized over the term of the secured advance using the effective interest rate method. As of December 31, 2022, the outstanding balance of the note was $207 and the unamortized balance of the debt discount and debt issuance costs were $44 and $7, respectively. During the nine months ended September 30, 2023, the Company paid $86 and amortized $28 and $4 of the debt discount and debt issuance costs, respectively. On February 16, 2023, the Company agreed to combine the unpaid balance with a new advance, see Note 3 below. The unamortized amounts of debt discount and debt issuance costs of $16 and $3, respectively, were written off as part of the accounting for loss from discontinued operations.

 

Note 3

 

On February 16, 2023, the Company modified and combined the unpaid balances of the previous two advances (see Notes 1 and 2 above) with a new advance from the same third party totaling $1,550 for the purchase of future receipts/revenues of $2,108, resulting in a debt discount of $558. The Company received $290 and paid $87 of debt issuance costs upon closing and an additional $3 on June 13, 2023. The debt discount and debt issuance costs are being amortized over the term of the secured advance using the effective interest rate method. During the nine months ended September 30, 2023, the Company paid $1,839 and amortized $517 and $81 of the debt discount and debt issuance costs, respectively. As of September 30, 2023, the outstanding balance of the note was $269, and the unamortized balance of the debt discount and debt issuance costs were $41 and $9 respectively.

 

See Note 14 for Subsequent Events.