| Debt Disclosure [Text Block] |
NOTE 11 – NOTES PAYABLE
Notes payable consisted of the following:
| |
|
(in thousands) |
|
| |
|
March 31, |
|
|
December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Promissory note dated July 27, 2021, issued to Arthur Chan, which matures July 26, 2024, and bears interest at a rate of 8% per annum. |
|
$ |
2,500 |
|
|
$ |
2,500 |
|
| Unsecured promissory note dated December 28, 2022 due to a related party. The interest rate on the note is 1% and matures on December 28, 2027. |
|
|
154 |
|
|
|
154 |
|
| Promissory note dated October 1, 2021, issued to Matthew Guild as part of the SilverStreak Solutions acquisition. The interest rate on the note was 10.0%. The note matures in March 2028. |
|
|
261 |
|
|
|
264 |
|
| Promissory note dated October 1, 2021, issued to Sterling Harlan as part of the SilverStreak Solutions acquisition. The interest rate on the note was 10.0%. The note matures in March 2028. |
|
|
1,044 |
|
|
|
1,058 |
|
| Secured promissory notes dated March 6, 2023 issued to People's California, LLC, which matures in March 2028 and bears interest at a rate of 10.0% per annum on the first $3.0 million due in December 2023, and 5.0% per annum on the remaining balance through September 2023 and 10.0% per annum thereafter. Payment of the remaining balance is due in March 2028. |
|
|
22,200 |
|
|
|
22,200 |
|
| Promissory note dated May 1, 2019, assumed by the Company on July 1, 2021 in connection with the purchase of real property, from a related party. The note matures on May 15, 2039 and bears interest at a rate of 9.9% per annum. |
|
|
2,794 |
|
|
|
2,813 |
|
| Notes Payable - Promissory Notes |
|
|
28,953 |
|
|
|
28,989 |
|
| Vehicle Loans |
|
|
6 |
|
|
|
7 |
|
| Less: Short-Term Debt |
|
|
(22,573 |
) |
|
|
(22,593 |
) |
| Plus: Debt Premium, Net |
|
|
86 |
|
|
|
82 |
|
| Net Long-Term Debt |
|
$ |
6,472 |
|
|
$ |
6,485 |
|
Promissory Note Related to People's California, LLC
On March 6, 2023, the Company entered into a binding settlement term sheet (as amended on May 17, 2023, “Settlement Term Sheet”) to resolve certain litigation matters with People’s California, LLC. On July 10, 2023, the Company received a notice from People's California, LLC in respect of the Settlement Term Sheet wherein People’s California, LLC notified the Company had failed to make the principal repayment of $2.20 million on July 6, 2023 and a monthly interest payment of $25,000 for the month of June 2023. As a result, the promissory notes held by People's California, LLC became callable by the creditor. Accordingly, the Company classified the long-term debt as current notes payable in the consolidated balance sheets as of March 31, 2024 and December 31, 2023. The Company is currently in ongoing discussions with People's California, LLC to renegotiate the debt. As of March 31, 2024, the outstanding balance on the promissory note was $22.2 million and the unamortized debt premium was $0.09 million.
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