Quarterly report pursuant to Section 13 or 15(d)

Convertible Note Payable

Convertible Note Payable
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Convertible Note Payable
Convertible Note Payable
The convertible note payable at December 31, 2018 was with Interstate Battery Systems International, Inc. (Interstate Battery) and was comprised of the following (in thousands):
December 31, 2018
Convertible note payable

Accrued interest

Deferred financing costs, net
Note discount
Less current portion

Convertible note payable, non-current portion

The convertible note payable bore interest at 11% per annum and was 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 was amortized using the effective interest method over the three-year term of the note, maturing on May 24, 2019.

On January 24, 2019, the Company repaid Interstate Battery the outstanding principal and interest on the convertible debt in the amount of $6.7 million. In connection with the payoff, the Company amortized the remaining discount on the note of $2.6 million and remaining deferred financing expenses of $20,000 to interest expense.