Annual report pursuant to Section 13 and 15(d)

ADVANCES ON FUTURE RECEIPTS

v3.23.1
ADVANCES ON FUTURE RECEIPTS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
ADVANCES ON FUTURE RECEIPTS

 

8. ADVANCES ON FUTURE RECEIPTS

 

The Company has the following advances on future receipts as of December 31, 2022:

 

Note   Issuance Date   Maturity Date   Interest Rate     Original Borrowing     Balance at December 31, 2022     Balance at December 31, 2021  
                                 
Note 1   October 29, 2021   April 28, 2022     5 %   $ 2,120     $ -     $ 1,299  
Note 2   October 29, 2021   July 25, 2022     28 %     3,808       -       2,993  
Note 3   December 23, 2021   June 22, 2022     5 %     689       -       689  
Note 4   August 25, 2022   May 11, 2023     26 %     3,400       1,782       -  
Note 5   October 25, 2022   April 26, 2023     30 %     322       207       -  
Total                   $ 10,339       1,989       4,981  
Debt discount                             (311 )     (800 )
Debt issuance costs                             (37 )     -  
Net                           $ 1,641     $ 4,181  

 

Note 1

 

On October 29, 2021, the Company received secured advances from an unaffiliated third party totaling $2,015 for the purchase of future receipts/revenues of $2,120. During the year ended December 31, 2022, the Company paid $1,270 and amortized $41 of the debt discount. The note was paid in full on April 28, 2022.

 

Note 2

 

On October 29, 2021, the Company received secured advances from an unaffiliated third party totaling $2,744 for the purchase of future receipts/revenues of $3,808. During the year ended December 31, 2022, the Company paid $2,993 and amortized $694 of the debt discount. The note was paid in full on August 17, 2022.

 

Note 3

 

On December 23, 2021, the Company received secured advances from an unaffiliated third party totaling $651 for the purchase of future receipts/revenues of $689. During the year ended December 31, 2022, the Company paid $689 and amortized $36 of the debt discount. The note was paid in full on June 22, 2022.

 

 

Note 4

 

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 will be amortized over the term of the secured advance using the effective interest rate method. During the year ended December 31, 2022, the Company paid $1,618 and amortized $633 and $70 of the debt discount and debt issuance costs, respectively. 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. On February 16, 2023, the Company agreed to extend the payment of the note over a period of 10 months, reducing the repayment by approximately 50%. See Note 17 – Subsequent Events.

 

Note 5

 

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 will be amortized over the term of the secured advance using the effective interest rate method. During the year ended December 31, 2022, the Company paid $115 and amortized $53 and $9 of the debt discount and debt issuance costs, respectively. 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. On February 16, 2023, the Company modified the payment terms of the note, reducing the payments by approximately 50%. See Note 17 – Subsequent Events.