Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Note Payable

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Note 10 - Note Payable
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

10. Note payable

 

On February 1, 2023, Aqua Metals Reno, Inc., our wholly-owned subsidiary, entered into a Loan Agreement with Summit Investment Services, LLC, a Nevada limited liability company (the “Lender”), pursuant to which the Lender provided us with a loan in the amount of $3 million. The loan proceeds were used to purchase a building located at 2999 Waltham Way McCarran, NV 89434 (the “Building”). The loan accrues interest at a fixed annual rate of 9.50%. Interest-only payments are due monthly for the first twenty-four months and the principal and all unpaid interest is due on February 1, 2025. We have the right to prepay the loan at any time, provided that we must pay guaranteed minimum interest of $213,750 (9-months of interest). The Loan Agreement includes representations, warranties, and affirmative and negative covenants that are customary of institutional loan agreements. As of  March 31, 2024 and  December 31, 2023, the Company was in compliance with all of the covenants. The loan is collateralized by a first priority lien on the building and site improvements, and is guaranteed by Aqua Metals, Inc.

 

Note payable is comprised of the following (in thousands):

 

   

March 31, 2024

    

December 31, 2023

  
                 

Note payable, current portion

                

Summit Investment Services, LLC

   $ 3,000     $ 35  

Less issuance costs

     (30 )     —  

Total note payable, current portion

   $ 2,970     $ 35  
                 

Note payable, non-current portion

                

Summit Investment Services, LLC

   $ —     $ 3,000  

Less issuance costs

     —       (77 )

Total note payable, non-current portion

   $ —     $ 2,923