Notes Payable | 8. Notes payable The following tables summarize outstanding notes payable as of March and December (dollars in s): A s of 03 / / (dollars in s) Maturity Date Interest Rate Conversion Price Principal Remaining Debt Discount Remaining Embedded Conversion Option Carrying Value Senior secured promissory note payable, in default In default 20.50 % n/a $ 18,000 (6,106 ) - $ 11,894 Convertible promissory notes payable, in default: Total convertible promisory notes payable, in default In default 15.40 % $ 0.1058 6,445 (488 ) 4,575 10,532 Convertible promissory notes payable, related parties, in default: Total convertible promisory notes payable, related parties, in default In default 14.0 % $ 0.10 1,596 - - 1,596 SBA loan # February 20, 2026 1.00 % n/a 1,033 - - 1,033 Advances on future cash receipts June 13, 2022 n/a n/a 925 (509 ) - 416 Total debt outstanding, including amounts in default 27,999 (7,103 ) 4,575 25,471 Less: current maturities, including notes in default (27,192 ) 7,103 (4,575 ) (24,664 ) Total long-term debt as of March $ 807 $ - $ - $ 807 As of 12 / / (dollars in s) Maturity Date Interest Rate Conversion Price Principal Remaining Debt Discount Remaining Embedded Conversion Option Carrying Value Senior secured promissory note payable, in default In default 20.25 % n/a $ 15,000 (3,414 ) - $ 11,586 Convertible promissory notes payable, in default: Total convertible promisory notes payable, in default In default 15.40 % $ 0.1071 6,445 (1,099 ) 6,255 11,601 Convertible promissory notes payable, related parties, in default: Total convertible promisory notes payable, related parties, in default In default 14.0 % $ 0.10 1,596 - - 1,596 SBA loan # February 20, 2026 1.00 % n/a 1,033 - - 1,033 Advances on future cash receipts March 11, 2022 n/a n/a 1,500 (1,054 ) - 446 Total debt outstanding, including amounts in default 25,574 (5,567 ) 6,255 26,262 Less: current maturities, including notes in default (24,699 ) 5,567 (6,255 ) (25,387 ) Total long-term debt as of December $ 875 $ - $ - $ 875 Senior secured promissory note payable, in default (“Senior Secured Note”) - On February the Company entered into a Note Extension with NH Expansion Credit Fund Holdings LP. The amount of the note was , with an interest rate of and matures on September 30, 2025 Because the combined fair value of the applicable warrants and common stock issued as part of this note exceeded the face value of the note, the additional amount beyond the face value is recorded as a loss on issuance of . Embedded Conversion Option Liability The fair value of Conversion Option liability was determined by using a binomial pricing model: At / / At / / Conversion Price (1) $ 0.11 $ 0.11 Interest Rate (annual) (2) 0.15 % 0.18 % Volatility (annual) (3) 185.75 % 289.65 % Time to Maturity (Years) 0.26 0.50 (1) Based on the terms provided in the warrant agreement to purchase common stock of the Company as of March and December (2) (3) |