Annual report pursuant to Section 13 and 15(d)

Convertible Notes

Convertible Notes
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Convertible Notes
10. Convertible Notes
The convertible note payable with Interstate Battery Systems International, Inc. (Interstate Battery) was comprised of the following (in thousands):

  December 31,
  2019 2018
Convertible note payable $ —    $ 5,000   
Accrued interest —    1,651   
Deferred financing costs, net —    (20)  
Note discount —    (2,556)  
Less current portion $ —    $ 4,075   
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.