Convertible Promissory Notes Payable | 7. Convertible Promissory Notes Payable The following two tables summarize outstanding notes payable as of March 31, 2023, and December 31, 2022: As of March 31, 2023 (In thousands, except conversion price) Conversion Price Principal Remaining Debt Discount Remaining Embedded Conversion Option Carrying Value Acquisition convertible promissory note, in default $ 0.10 4,000 - - 4,000 Convertible promissory notes payable, related parties, in default $ 0.10 1,373 - - 1,373 2022 convertible notes payable $ 0.04 13,615 (1,532 ) 870 12,953 2022 convertible notes payable, related parties $ 0.04 6,560 (738 ) 419 6,241 Total Convertible Promissory Notes Payable $ 25,548 $ (2,270 ) $ 1,289 $ 24,567 As of December 31, 2022 (In thousands, except conversion price) Conversion Price Principal Remaining Debt Discount Remaining Embedded Conversion Option Carrying Value Acquisition convertible promissory note, in default $ 0.10 4,000 - - 4,000 Convertible promissory note, related party, in default $ 0.10 1,373 - - 1,373 2022 convertible notes payable $ 0.04 13,660 (2,532 ) 1,585 12,713 2022 convertible notes payable, related parties $ 0.04 6,515 (1,234 ) 755 6,036 Total Convertible Promissory Notes $ 25,548 $ (3,766 ) $ 2,340 $ 24,122 2022 Convertible Notes Payable and 2022 Convertible Notes Payable, Related Parties - In August 2022 and November 2022, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”), for the sale in a private placement of (i) Future Advance Convertible Promissory Notes (the “Notes”) in an aggregate principal amount of $16.2 million in August and $4.0 million in November, (ii) Common Stock Purchase Warrants to purchase an additional 504.4 million shares of common stock with an exercise price of $0.067 per share and (iii) Common Stock Purchase Warrants to purchase an additional 504.4 million shares of common stock with an exercise price of $0.04 per share. The Company paid issuance costs totaling approximately $1.4 million. Interest expense for the three months ended March 31, 2023, totaled $2.3 million, $0.8 million in contractual interest expense and $1.5 million in amortization of debt discount and issuance costs. Pursuant to the Notes, the Company promised to pay in cash and/or in shares of common stock, at a conversion price of $0.04 (the “Conversion Price”), the principal amount and interest at a rate of 15% per annum on any outstanding principal. The Conversion Price of the Notes is subject to adjustment, including if the Company issues or sells shares of common stock for a price per share less than the Conversion Price of the Notes or if the Company lists its shares of common stock on The Nasdaq Capital Market and the average volume weighted average price of such common stock for the five trading days |