| Schedule of debt |
Total debt consists of the following as of September 30, 2020 and December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
($ in thousands) |
|
2020 |
|
2019 |
|
Interest rate |
|
Maturity |
IDB Note |
|
$ |
— |
|
$ |
14,929 |
|
2.25 |
% |
Aug - 2021 |
2017 Subordinated Note Financing3 |
|
|
— |
|
|
3,254 |
|
8.00 |
% |
March - 2022 |
2017 Subordinated Note Financing3 |
|
|
— |
|
|
13,893 |
|
8.00 |
% |
May - 2022 |
2017 Subordinated Note Financing3 |
|
|
— |
|
|
1,820 |
|
8.00 |
% |
June - 2022 |
2017 Subordinated Note Financing3 |
|
|
— |
|
|
3,018 |
|
8.00 |
% |
August - 2022 |
2017 Subordinated Note Financing |
|
|
— |
|
|
6,371 |
|
8.00 |
% |
September - 2022 |
2018 Venture Notes4 |
|
|
— |
|
|
6,517 |
|
8.00 |
% |
August - 2021 |
2018 Venture Notes4 |
|
|
— |
|
|
15,190 |
|
8.00 |
% |
September - 2021 |
2019 Notes1 |
|
|
— |
|
|
9,000 |
|
12.00 |
% |
September - 2021 |
Mustang Horizon Notes2 |
|
|
— |
|
|
15,750 |
|
9.00 |
% |
October - 2022 |
Oaktree Note |
|
|
60,000 |
|
|
— |
|
11.00 |
% |
August - 2025 |
Total notes payable |
|
|
60,000 |
|
|
89,742 |
|
|
|
|
Less: Discount on notes payable |
|
|
8,607 |
|
|
5,086 |
|
|
|
|
Total notes payable |
|
$ |
51,393 |
|
$ |
84,656 |
|
|
|
|
Note 1: |
Formerly the Opus Credit Facility (see Note 16.) |
Note 2: |
Interest rate was 9.0% plus one-month LIBOR Rate in excess of 2.5%. |
Note 3: |
As a result of a one-year maturity date extension effective 2020, the interest rate increased by 1% to 9.0%. |
Note 4: |
At December 31, 2019, $6.0 million is included in Notes payable, short-term on the condensed consolidated balance sheet. |
|
| Schedule of interest expense for all debt arrangements |
The following table shows the details of interest expense for all debt arrangements during the periods presented. Interest expense includes contractual interest; fees include amortization of the debt discount and amortization of fees associated with loan transaction costs, amortized over the life of the loan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2020 |
|
2019 |
($ in thousands) |
|
Interest |
|
Fees |
|
Total |
|
Interest |
|
Fees |
|
Total |
IDB Note |
|
$ |
77 |
|
$ |
— |
|
$ |
77 |
|
$ |
86 |
|
$ |
— |
|
$ |
86 |
2017 Subordinated Note Financing1 |
|
|
694 |
|
|
1,374 |
|
|
2,068 |
|
|
1,072 |
|
|
326 |
|
|
1,398 |
2019 Notes |
|
|
172 |
|
|
— |
|
|
172 |
|
|
275 |
|
|
104 |
|
|
379 |
2018 Venture Notes1 |
|
|
387 |
|
|
638 |
|
|
1,025 |
|
|
438 |
|
|
166 |
|
|
604 |
LOC Fees |
|
|
14 |
|
|
— |
|
|
14 |
|
|
14 |
|
|
— |
|
|
14 |
Mustang Horizon Notes1,3 |
|
|
895 |
|
|
1,792 |
|
|
2,687 |
|
|
345 |
|
|
234 |
|
|
579 |
Oaktree Note1 |
|
|
624 |
|
|
108 |
|
|
732 |
|
|
— |
|
|
— |
|
|
— |
Note Payable2 |
|
|
187 |
|
|
— |
|
|
187 |
|
|
— |
|
|
108 |
|
|
108 |
Other |
|
|
(4) |
|
|
— |
|
|
(4) |
|
|
— |
|
|
— |
|
|
— |
Total Interest Expense and Financing Fee |
|
$ |
3,046 |
|
$ |
3,912 |
|
$ |
6,958 |
|
$ |
2,230 |
|
$ |
938 |
|
$ |
3,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
($ in thousands) |
|
Interest |
|
Fees |
|
Total |
|
Interest |
|
Fees |
|
Total |
IDB Note |
|
$ |
246 |
|
$ |
— |
|
$ |
246 |
|
$ |
254 |
|
$ |
- |
|
$ |
254 |
2017 Subordinated Note Financing1 |
|
|
2,870 |
|
|
1,890 |
|
|
4,760 |
|
|
3,148 |
|
|
1,081 |
|
|
4,229 |
2019 Notes |
|
|
710 |
|
|
— |
|
|
710 |
|
|
840 |
|
|
336 |
|
|
1,176 |
2018 Venture Notes1 |
|
|
1,253 |
|
|
1,000 |
|
|
2,253 |
|
|
1,299 |
|
|
468 |
|
|
1,767 |
LOC Fees |
|
|
45 |
|
|
— |
|
|
45 |
|
|
45 |
|
|
— |
|
|
45 |
Mustang Horizon Notes1,3 |
|
|
1,585 |
|
|
2,321 |
|
|
3,906 |
|
|
698 |
|
|
466 |
|
|
1,164 |
Oaktree Note1 |
|
|
624 |
|
|
108 |
|
|
732 |
|
|
— |
|
|
— |
|
|
— |
Note Payable2 |
|
|
492 |
|
|
— |
|
|
492 |
|
|
— |
|
|
108 |
|
|
108 |
Other |
|
|
(2) |
|
|
— |
|
|
(2) |
|
|
— |
|
|
— |
|
|
— |
Total Interest Expense and Financing Fee |
|
$ |
7,823 |
|
$ |
5,319 |
|
$ |
13,142 |
|
$ |
6,284 |
|
$ |
2,459 |
|
$ |
8,743 |
Note 1: |
For the three and nine months ended September 30, 2020, $1.2 million expense of unamortized debt discount fees for the 2017 Subordinated Note Financing, $0.3 million for the 2018 Venture Notes and $1.8 million for the Mustang Horizon Notes. |
Note 2: |
Imputed interest expense related to Journey’s agreements for Ximino and oral acne treatment. |
Note 3: |
Included in interest expense for the three and nine months ended September 30, 2020 was $0.6 million of prepayment penalties included in interest expense for the Mustang Horizon Notes. |
|