| Debt | Note 7 - Debt Antara Financing Agreement Concurrently with the Ritter acquisition on September 16, 2019, the Company entered into a $ 24.5 million financing agreement (the “Financing Agreement”) among the Company, each subsidiary of the Company, various lenders from time to time party thereto, and Cortland Capital Market Services LLC, as administrative agent and collateral agent. Pursuant to the Financing Agreement, the Company initially borrowed $ 22.4 million and borrowed the remaining $ 2.1 million during October 2019 (the “Term Loan”). All of the Company’s subsidiaries were originally guarantors under the Financing Agreement. The Term Loan is secured by all assets of the Company and its subsidiaries, including pledges of all equity in the Company’s subsidiaries and is not subject to registration rights. The Financing Agreement contains covenants, subject to specific exceptions, that limit (i) the making of investments, (ii) the incurrence of additional indebtedness, (iii) the incurrence of liens, (iv) payments and asset transfers with restricted junior loan parties or subsidiaries, including dividends, (v) transactions with shareholders and affiliates, (vi) asset dispositions and acquisitions, among others. The Term Loan bears interest at 12 % per annum and had an original maturity date of September 16, 2022 . Until December 31, 2019, interest on the Term Loan was paid in kind and capitalized as additional principal, and the Company had the option to pay interest on the capitalized interest in cash or in kind. All interest payments on the Term Loan during 2019 were in kind. After December 31, 2019, monthly interest payments were due in cash, and all outstanding principal and interest will be due on the maturity date. The Term Loan may be prepaid at any time, subject to payment of a prepayment premium of (1) 7 % for each early payment made or coming due on or prior to September 16, 2020, (2) after September 16, 2020, 5 % for each early payment made or coming due on or prior to September 16, 2021, and (3) thereafter, no premium shall be due. Proceeds were to be used to (i) effect the Ritter acquisition, (ii) to refinance and retire existing indebtedness, and (iii) general working capital needs. In connection with the Financing Agreement, the Company issued 98,000 shares of common stock of the Company valued at $ 0.1 million as an advisory fee to a third-party financial advisor. Concurrently, and in connection with the Financing Agreement, the Company issued two warrants (the “$0.01 Warrant” and the “$ 2.50 Warrant” and collectively, the “Antara Warrants”) to Antara Capital to purchase an aggregate of 4,375,000 shares of common stock of the Company (the “Antara Warrant Shares”). The $0.01 Antara Warrant grants Antara Capital the right to purchase up to 3,350,000 Antara Warrant Shares at an exercise price of $ 0.01 per share and is exercisable for five years from the date of issuance. The $ 2.50 Antara Warrant grants Antara Capital the right to purchase up to 1,025,000 Antara Warrant Shares at an exercise price of $2.50 per share, subject to adjustment for certain distributions, stock splits, and issuances of common stock, and is exercisable for ten years from the date of issuance. If the fair market value of the Antara Warrant Shares is greater than the related exercise price at the end of the exercise period (the Warrant Shares are “in the money”), then any outstanding Antara Warrants that are in the money will be automatically deemed to be exercised immediately prior to the end of the exercise period. Pursuant to the Antara Warrants, the Company granted Antara Capital preemptive rights to purchase its pro rata share, determined based on the number of shares held by Antara Capital or into which Antara Capital’s Antara Warrants are exercisable, of capital stock issued by the Company after the issuance date of the Antara Warrants, subject to certain excepted issuances. The Company issued a warrant for 1,500,000 shares of common stock to Antara at an exercise price of $ 0.01 per share (the “Side Letter Warrant”) subject to an acquisition agreement between the Company and LoadTrek. LoadTrek is a GPS system designed for the trucking industry, owned by a related party. If the Company were to successfully complete an acquisition of certain assets of LoadTrek or meet financial performance metrics set forth in the warrant agreement, all or a portion of the shares underlying the Side Letter Warrant were subject to cancellation. The Company did not acquire the LoadTrek assets and the Side Letter Warrant was subsequently amended to remove the cancellation provision and, therefore, none of the shares underlying the warrant were cancelled. Since the Term Loan, Antara Warrants, and Side Letter Warrant were negotiated in contemplation of each other and executed within a short period of time, the Company evaluated the debt and warrants as a combined arrangement. Since the Antara Warrants and Side Letter Warrants are liability classified we recorded these items at their fair value and the residual proceeds were allocated to the Term Loan. The non-lender fees incurred to establish the financing arrangement were allocated to the Term Loan and capitalized on the Company’s balance sheet as debt issuance costs, which are amortized using the effective interest method into interest expense over the term of the Term Loan. The Term Loan was further evaluated for the existence of embedded features to be bifurcated from the amount allocated to the debt component. The Term Loan agreement contains a mandatory prepayment feature that was determined to be an embedded derivative, requiring bifurcation and fair value recognition for the derivative liability. The fair value of this derivative liability is remeasured at each reporting period, with changes in fair value recognized in the consolidated statement of operations. Any changes in the assumptions used in measuring the fair value of the derivative liability could result in a material increase or decrease in its carrying value. The allocation of the proceeds to the debt component and the bifurcation of the embedded derivative liability resulted in a $ 9.0 million debt discount that will be amortized to interest expense over the term of the Term Loan. Forbearance Agreement and Incremental Amendment to Financing Agreement During February 2020, the Company entered into a Forbearance Agreement and Incremental Amendment to Financing Agreement (the “Incremental Amendment”), pursuant to which the Company obtained an additional $ 3.2 million of term loan commitments (the “Incremental Term Loans”) and borrowed $ 3.2 million from Antara Capital on the same terms as its existing term loan commitments provided under the Financing Agreement. The Incremental Term Loans bear interest at 12 % per annum, with monthly interest payments due in cash and all outstanding principal and interest due on the maturity date. The Incremental Term Loans may be prepaid at any time, subject to payment of a prepayment premium equal to (i) 7 % of each prepayment made on or prior to September 16, 2020, and (ii) 5 % of each prepayment made after September 16, 2020, but on or prior to September 16, 2021, with no premium due after September 16, 2021. Pursuant to the Incremental Amendment, the collateral agent and other lenders agreed to forbear from exercising certain rights, remedies, powers, privileges, and defenses under the Financing Agreement and the other related loan documents during the forbearance period with respect to certain events of default and/or expected or anticipated events of default arising under the Financing Agreement. The Incremental Amendment also suspended the accrual of interest at the post-default rate until the end of the forbearance period. The Company paid a 2 % financing fee in connection with its entry into the Incremental Amendment. The Company also reimbursed the Collateral Agent for $ 0.1 million of fees, costs, and expenses previously accrued under the Financing Agreement and in addition paid fees, costs, and expenses of the Collateral Agent and the lenders newly incurred in connection with the Incremental Amendment. In connection with the Incremental Amendment, the Company issued a warrant (the “Antara Warrant 2020”) to Antara Capital to purchase 3,650,000 shares (the “Antara Warrant Shares 2020”) of the Company’s common stock at an exercise price of $ 2.50 per share, subject to adjustment for certain distributions, stock splits, and issuances of common stock, as an incentive. The issuance of this warrant results in an additional debt discount that will be amortized to interest expense over the term of the debt using the effective interest method. The Antara Warrant 2020 is exercisable for ten years from the date of issuance. If the fair market value of the Antara Warrant Shares 2020 is greater than $ 2.50 at the end of the exercise period, then the Antara Warrant 2020 will be deemed to be exercised automatically and immediately prior to the end of the exercise period. Pursuant to the Antara Warrant 2020, the Company granted Antara Capital preemptive rights to purchase its pro rata share, determined based on the number of shares held by Antara Capital or into which warrants held by Antara Capital (including the Antara Warrant 2020) are exercisable, of capital stock issued by the Company after the issuance date of the Antara Warrant 2020, subject to certain excepted issuances. The Company accounted for the Incremental Amendment as a modification of the Financing Agreement. The Company capitalized the estimated fair value of the Antara Warrant 2020 and fees paid to Antara on its balance sheet as a discount on the Incremental Term Loans, which is amortized using the effective interest method into interest expense over the term of the Incremental Term Loans. Amendment to Forbearance Agreement and Second Incremental Amendment to Financing Agreement During March 2020, the Company entered into an amendment to forbearance agreement and second incremental amendment to financing agreement (the “Second Incremental Amendment”), pursuant to which the Company obtained an additional $ 3.1 million in term loan commitments (the “Second Incremental Term Loans”) and borrowed $ 3.1 million from Antara Capital on the same terms as its existing term loan commitments provided under the Financing Agreement. The Second Incremental Term Loans bear interest at 12 % per annum, with monthly interest payments due in cash and all outstanding principal and interest due on the maturity date. The Second Incremental Term Loans may be prepaid at any time, subject to payment of a prepayment premium equal to (i) 7 % of each prepayment made on or prior to September 16, 2020 and (ii) 5 % of each prepayment made after September 16, 2020 but on or prior to September 16, 2021, with no premium due after September 16, 2021. The Second Incremental Amendment also suspends the accrual of interest at the post-default rate until the end of the forbearance period. The forbearance period was scheduled to terminate on the earliest of (a) September 30, 2020, (b) the occurrence of any event of default other than the specified defaults, or (c) the date on which any breach of any of the conditions or agreements, including without limitation the affirmative covenants, provided in the Incremental Amendment or Second Incremental Amendment occurs. The Company paid all fees, costs, and expenses of the collateral agent and the lenders incurred in connection with the Incremental Amendment and the Second Incremental Amendment. The Company accounted for the Second Incremental Amendment as a modification of the Financing Agreement. The Company capitalized the fees paid to Antara on its balance sheet as a discount on the Second Incremental Term Loans, which is amortized using the effective interest method into interest expense over the term of the Second Incremental Term Loans. Waiver and Agreement to Issue Warrant Effective March 31, 2020, the Company entered into a Waiver and Agreement to Issue Warrant (the “Waiver Agreement”) with Antara Capital and the collateral agent, which modified a certain affirmative covenant and waived another affirmative covenant in the Financing Agreement and, in exchange, the Company agreed to issue to Antara Capital a warrant to purchase up to 3,250,000 shares of the Company’s Common Stock at an exercise price of $ 2.50 per share as an incentive. The Company accounted for this issuance to Antara as an extinguishment of the existing debt and the execution of a new debt instrument. The Company recorded a $ 10.1 million loss on extinguishment of debt related to unamortized debt discount and debt issuance costs, which was recorded within loss on extinguishment of debt in the consolidated statement of operations for the three months ended March 31, 2020. The Company classified the $ 31.7 million unpaid principal balance, which includes $ 0.9 million of capitalized interest, as a current liability as of March 31, 2020 due to the occurrence of one or more covenant violations, including violation of the EBITDA-based financial covenant. The Company also classified the $ 25.4 million unpaid principal balance, which includes $ 0.9 million of capitalized interest, as a current liability as of December 31, 2019 due to the existence of one or more covenant violations. Debt (with unrelated parties) consists of:
($ in thousands) March 31, December 31,
(a) $1.3 million note payable $ 782 $ 814
(b) $4.0 million Secured Convertible Promissory Notes (“Secured Convertible Notes”) 1,028 (1) 1,005
(c) $0.3 million note payable 206 225
(d) Three equipment notes payable 16 24
(e) Thunder Ridge supplier advance 881 890
(f) Various notes payable acquired from JB Lease 3,054 3,575
(g) $0.8 million note payable 633 673
(h) $0.3 million note payable 163 224
(i) $3.8 million note payable 3,053 3,203
(j) Equipment notes payable acquired from Sheehy 287 614
(k) Notes payable acquired from Sheehy 744 787
(l) Notes payable to two financing companies 1,331 1,400
(m) Finkle equipment notes 3,999 4,450
Total before debt issuance costs and debt discount 16,177 17,884
Debt issuance costs ( 22 ) ( 38 )
Debt discount ( 32 ) ( 56 )
16,123 17,790
Less current portion ( 6,955 ) ( 5,681 )
Long-term debt, less current portion $ 9,168 $ 12,109 (1) Classified as a current liability as of March 31, 2020 due to the existence of one or more covenant violations. (a) $ 1.3 million note payable The $ 1.3 million note payable was issued December 31, 2014, with interest adjusted to the SBA LIBOR base rate, plus 2.35 %. The note matures March 2024 , is secured by substantially all of Titan’s business assets and is personally guaranteed by certain former members of Titan including a member of our board of directors and certain of his relatives, and beneficial owners of more than 5 % of our undiluted shares of common stock. The note is a co-borrower arrangement between Titan and El Toro with the proceeds received by El Toro. In 2016, the Company issued 35,491 units (equivalent to 31,203 common shares) to those members as compensation for the guarantee. (b) $ 4.0 million Secured Convertible Promissory Notes (“Secured Convertible Notes”) The Secured Convertible Notes were issued during August 2018. The Company paid debt issuance costs of $ 0.5 million in connection with the Secured Convertible Notes. They bear interest at 9 %, compounded quarterly, with principal due two years after issuance and are secured by all the assets of the Company. The holder may agree, at its discretion, to add accrued interest in lieu of payment to the principal balance of the Secured Convertible Notes on the first day of each calendar quarter. The Secured Convertible Notes may not be prepaid prior to the first anniversary of the date of issuance, but may be prepaid without penalty after the first anniversary of the date of issuance. The Secured Convertible Notes are convertible into shares (the “Note Shares”) of the Company’s common stock at a conversion rate of $ 2.50 per share of common stock at the Holder’s option: 1) at any time after the first anniversary of the date of issuance or 2) at any time within 90 days after a “triggering event,” including a sale, reorganization, merger, or similar transaction where the Company is not the surviving entity. The Secured Convertible Notes are also subject to mandatory conversion at any time after the first anniversary of the date of issuance if the average volume of shares of common stock traded on the Nasdaq Capital Market, NYSE American Market or a higher tier of either exchange is 100,000 or more for the 10 trading days prior to the applicable date. Such a mandatory conversion has not occurred. The Secured Convertible Notes also provide that the Company will prepare and file with the Securities and Exchange Commission (“SEC”), as promptly as reasonably practical following the issuance date of the Secured Convertible Notes, but in no event later than 45 days following the issuance date, a registration statement on Form S-1 (the “Registration Statement”) covering the resale of the common stock and the warrant shares and as soon as reasonably practical thereafter to effect such registration. The Company is required to pay liquidated damages of 1 % of the outstanding principal amount of the Secured Convertible Notes each 30 days if the Registration Statement is not declared effective by the SEC within 180 days of the filing date of the Registration Statement. During the three months ended March 31, 2020, the Company incurred $ 0.1 million and paid $ 0.1 million in liquidated damages to noteholders. As additional consideration for the Secured Convertible Notes, the Company issued warrants to the Holders to purchase 1,602,000 shares of common stock at an exercise price of $ 2.50 per share, exercisable for ten years from the date of issuance. The fair value of the warrants issued determined using the Black Scholes pricing model was $ 0.7 million, calculated with a ten-year term; 65 % volatility; 2.89 %, 2.85 % or 3.00 % discount rates and the assumption of no dividends. As of March 31, 2020 and December 31, 2019 , the unamortized debt discount was $ 0.1 million and $ 0.2 million, respectively, and the unamortized debt issuance costs were $ 0.1 million and $ 0.2 million, respectively. During the three months ended March 31, 2020 $ 0.1 million was added to the principal balance. The Company classified the $ 1.0 million unpaid principal balance, in addition to the $ 3.1 million portion of the Secured Convertible Notes held by a related party, as a current liability as of March 31, 2020 due to the existence of one or more covenant violations. (c) $0.3 million note payable The $ 0.3 million note payable was issued during November 2018, with interest at 3 % and a maturity date of October 2022 . The note calls for quarterly principal payments on January, April, July, and October 1st of $ 18,750 plus the related accrued interest. (d) Three equipment notes payable The three equipment notes are payable to banks and were acquired in the Thunder Ridge acquisition with interest rates ranging from 2.99 % to 6.92 %, with maturity dates between September 2020 and January 2023 . The notes are collateralized by equipment. (e) Thunder Ridge supplier advance Thunder Ridge signed an agreement with a supplier on August 31, 2017, in which $ 1.0 million was advanced to Thunder Ridge during 2017. The advance bears interest at 8.5 %, is collateralized by substantially all of Thunder Ridge’s assets, and has a July 2022 maturity date. (f) Various notes payable acquired from JB Lease The various notes payable acquired from JB Lease were issued to multiple lenders with interest rates ranging from 3.9 % to 5.1 % per annum. The notes have maturity dates ranging from September 2019 to August 2024 . These notes are collateralized by transportation equipment and guaranteed by the stockholders of the Company. (g) $0.8 million note payable The $ 0.8 million note payable to a financing company was issued February 11, 2019, with interest at 10.2 % per annum and a maturity date of February 11, 2023 . The note is collateralized by certain equipment and guaranteed by a member of management. (h) $0.3 million note payable The $ 0.3 million note payable to a financing company was issued January 22, 2019, with interest at 10.6 % per annum and a maturity date of January 22, 2023 . The note is collateralized by certain equipment and guaranteed by a member of management. (i) $3.8 million note payable The $ 3.8 million note payable to a financing company was issued January 23, 2019, with interest at 10.1 % per annum and a maturity date of February 23, 2024 . The note is collateralized by certain equipment and guaranteed by a member of management. (j) Equipment notes payable acquired from Sheehy The equipment notes payable acquired from Sheehy, payable to various financing companies, have maturity dates varying from June 2020 to August 2020 and interest rates ranging from 3.1 % to 4.1 % per annum. The notes are guaranteed by stockholders and secured by the equipment and a general business security interest. (k) Notes payable acquired from Sheehy The notes payable acquired from Sheehy are payable to a bank with interest rates of 4.35 % to 4.375 % per annum. The notes payable mature between September 2020 and December 2021 and are collateralized by substantially all of the Sheehy assets. (l) Notes payable to two financing companies Notes payable to two financing companies issued in February 2019 and October 2019 with maturity dates in March 2023 and October 2024 , respectively. The interest rates range from 4.5 % to 8.94 %, and the notes are collateralized by certain equipment. (m) Finkle equipment notes Equipment notes payable with interest rates ranging from 5.2 % to 11.8 % and maturity dates between May 2020 and September 2025 . The notes are collateralized by equipment. Debt (with related parties) consists of:
($ in thousands) March 31, December 31,
(a) Antara Financing Agreement $ 31,653 (1) $ 25,377
(b) Four promissory notes with an aggregate principal amount of $9.5 million 9,500 9,500
(c) $3.8 million senior promissory note 3,800 (2) 3,800
(d) $4.0 million promissory note 4,000 (2) 4,000
(e) $4.0 million Secured Convertible Promissory Notes (“Secured Convertible Notes”) 3,067 (2) 3,000
(f) $2.5 million promissory note - stockholder 1,892 (2) 1,972
(g) $6.4 million promissory note - stockholder 6,111 (2) 6,417
(h) Notes payable acquired from Ritter 474 487
Total before debt issuance costs and debt discount 60,497 54,553
Debt issuance costs ( 112 ) ( 615 )
Debt discount ( 9,202 ) ( 16,270 )
51,183 37,668
Less current portion ( 48,199 ) ( 25,656 )
Long-term debt, less current portion - related party $ 2,984 $ 12,012 (1) Classified as a current liability as of March 31, 2020 due to due to the existence of one or more covenant violations, including violation of the EBITDA-based financial covenant. (2) Classified as a current liability as of March 31, 2020 due to the existence of one or more covenant violations not based on financial metrics. (a) Antara Financing Agreement The $ 31.7 million of Term Loans bear interest at 12 % per annum and have a maturity date of September 16, 2022 . Until December 31, 2019, interest on the term loan was paid in kind and capitalized as additional principal, and the Company had the option to pay interest on the capitalized interest in cash or in kind. After December 31, 2019, monthly interest payments are due in cash. All outstanding principal and interest is due on the maturity date. As of March 31, 2020 , the unamortized debt discount was $ 1.7 million and the unamortized debt issuance costs were less than $ 0.1 million . As of December 31, 2019, the unamortized debt discount was $ 8.6 million and the unamortized debt issuance costs were $ 0.5 million. (b) Four promissory notes with an aggregate principal amount of $ 9.5 million The four promissory notes were issued to the former EAF members with interest at 1.5 %, issued February 1, 2017, and mature February 1, 2026 . These convertible promissory notes are secured by substantially all of the assets of EAF. The Company imputed an interest rate of 5.1 % on the promissory notes. The discount is accreted over the period from the date of issuance to the date the promissory notes are due using the effective interest rate method. These promissory notes are convertible into 7,000,000 shares of the Company's common stock. As of March 31, 2020 and December 31, 2019 , the unamortized debt discount was $ 6.9 million and $ 7.1 million, respectively. (c) $ 3.8 million senior promissory note The $ 3.8 million senior promissory note was issued on February 1, 2017, to a former EAF member with interest at 7.5 % and default interest of 12.5 % per annum, an original maturity of the earlier of (a) December 2017; (b) ten days after the initial closing of a private offering of capital stock of the Company in an amount not less than $ 10 million; or (c) an event of default. During April 2018, the promissory note’s maturity date was extended to July 2019 . The senior promissory note is unsecured. No principal and interest payments are due until maturity. In connection with the Financing Agreement, amounts due under the senior promissory note were subordinated and extended to November 2022 . Additionally, the holder agreed not to receive, accept, or demand payment under the subordinated obligation until all obligations under the Financing Agreement have been paid in full, except that the holder may continue to receive regularly scheduled interest payments so long as holder has not been informed that an event of default has occurred and is continuing under the Financing Agreement. Also in connection with the Financing Agreement and as consideration for the subordination of the subordinated promissory note and the promissory note described below, the Company issued a warrant to the holder to purchase an aggregate of 350,000 shares of common stock of the Company at an exercise price of $ 0.01 per share. The warrant is exercisable for five years from the date of issuance. The Company calculated the fair value of the warrant using the Black-Scholes option pricing model, and the portion of the fair value attributable to the senior promissory note was $ 0.2 million. As of March 31, 2020 and December 31, 2019 , the remaining unamortized debt discount was $ 0.2 million and $ 0.2 million, respectively. The Company classified the $ 3.8 million unpaid principal balance as a current liability as of March 31, 2020 due to the existence of one or more covenant violations not based on financial metrics. (d) $ 4.0 million promissory note The $ 4.0 million promissory note was issued on February 1, 2017, to a former EAF member with interest at 7.5 % and an original maturity date of February 2020 . The note is guaranteed by substantially all the assets of EAF and the Company. No principal and interest payments are due until maturity. In connection with the Financing Agreement, amounts due under the promissory note were subordinated and extended to November 2022 . Additionally, the holder agreed not to receive, accept, or demand payment under the subordinated obligation until all obligations under the Financing Agreement have been paid in full, except that the holder may continue to receive regularly scheduled interest payments so long as holder has not been informed that an event of default has occurred and is continuing under the Financing Agreement. Also in connection with the Financing Agreement and as consideration for the subordination of the promissory note and the senior promissory note described above, the Company issued a warrant to the holder to purchase an aggregate of 350,000 shares of common stock of the Company at an exercise price of $ 0.01 per share. The warrant is exercisable for five years from the date of issuance. The Company calculated the fair value of the warrant using the Black-Scholes option pricing model, and the portion of the fair value attributable to the senior promissory note was $ 0.3 million. As of March 31, 2020 and December 31, 2019 , the remaining unamortized debt discount was $ 0.2 million and $ 0.2 million, respectively. The Company classified the $ 4.0 million unpaid principal balance as a current liability as of March 31, 2020 due to the existence of one or more covenant violations not based on financial metrics. (e) $ 4.0 million Secured Convertible Promissory Notes ("Secured Convertible Notes") Represents the portion of the Secured Convertible Notes issued during 2018 (discussed above) whereby the noteholder is a related party. On March 17, 2021, as result of the Settlement Agreement and Release dated March 12, 2021 discussed in Note 13, Subsequent Events , the noteholder is no longer a related party. (f) $ 2.5 million promissory note - stockholder In connection with the Company's June 1, 2018 acquisition of all of the issued and outstanding shares of Thunder Ridge, this $ 2.5 million promissory note was issued to a stockholder, with interest at 6 % (interest in the event of a default at 9 %) and a maturity date of the earlier of (a) the date the Company raises $ 40.0 million in public or private offerings of debt or equity; (b) December 31, 2018 , or (c) termination of Trey Peck’s employment with the Company by the Company without cause or by Trey Peck for good reason. The note is collateralized by all of the assets of Thunder Ridge and is also secured by the Thunder Ridge Shares (“TR Shares”). The maturity date of the promissory note has been subsequently amended to extend it to November 30, 2022 . Effective with the most recent extension in August 2019 , the Company paid Peck approximately $ 0.15 million in principal and increased the monthly principal payments to $ 20,000 . The note calls for monthly principal payments, with all accrued and unpaid interest due and payable on the maturity date. If the Company fails to repay the amounts outstanding under the note on or before November 30, 2022, then at the option of Peck, the Company shall immediately surrender all right, title and interest in all of the outstanding shares of stock in Thunder Ridge to Peck. The Company classified the $ 1.9 million unpaid principal balance as a current liability as of March 31, 2020 due to the existence of one or more covenant violations not based on financial metrics. (g) $ 6.4 million promissory note – stockholder The $ 6.4 million promissory note was issued February 2, 2019 to a stockholder, with interest at 9 % per annum and an original maturity date of August 31, 2020 . The note is collateralized by all of the assets of Ursa and JB Lease. Principal and interest payments commenced June 1, 2019 , with a final payment of $ 6.4 million due at maturity. On August 30, 2019 , the note was extended to November 2022 . The Company classified the $ 6.1 million unpaid principal balance as a current liability as of March 31, 2020 due to the existence of one or more covenant violations not based on financial metrics. (h) Notes payable acquired from Ritter Note payable to a related party that was assumed as a liability in the Ritter acquisition. The note has an interest rate of 7.0 % and matures in December 2028 . |
