Quarterly report pursuant to Section 13 or 15(d)

Convertible Note Payable

v3.10.0.1
Convertible Note Payable
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Convertible Note Payable

7. Convertible Note Payable

 

The convertible note payable is with Interstate Battery Systems International, Inc. (Interstate Battery) and is comprised of the following (in thousands):

 

    June 30, 2018     December 31, 2017  
             
Convertible note payable   $ 5,000     $ 5,000  
Accrued interest     1,294       961  
Deferred financing costs, net     (43 )     (67 )
Note discount     (3,965 )     (4,562 )
                 
Less current portion   $ 2,286       -  
                 
Convertible note payable, non-current portion   $ -     $ 1,332  

 

The convertible note payable bears interest at 11% per annum and is due May 24, 2019. The original note discount was calculated as the allocated fair value of the warrants issued in connection with the transaction, which included the issuance of common stock, warrants and the convertible note, as well as the allocated fair value of the embedded conversion feature, subject to limitations on the absolute amount of discount attributable to the convertible notes and its allocated value. The discount is being amortized using the effective interest method over the three-year term of the note, maturing on May 24, 2019.