Emmaus Life Sciences, Inc. Current report filing

Current report filing

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2019

Notes payable consisted of the following at June 30, 2019 and December 31, 2018 (in thousands):

Year Issued	Interest Rate Range	Term of Notes	Conversion Price		Principal Outstanding June 30, 2019		Discount Amount June 30, 2019		Carrying Amount June 30, 2019		Shares Underlying Notes June 30, 2019		Principal Outstanding December 31, 2018		Discount Amount December 31, 2018		Carrying Amount December 31, 2018		Shares Underlying Notes December 31, 2018
Notes payable
2013	10%	Due on demand		—	$	926	$	—	$	926		—	$	909	$	—	$	909		—
2015	10%	Due on demand		—		—		—		—		—		10		—		10		—
2016	10% - 11%	Due on demand		—		833		—		833		—		843		—		843		—
2017	5% - 11%	Due on demand		—		—		—		—		—		2,575		—		2,575		—
2018	10% - 11%	Due on demand- 18 months		—		12,200		5,053		7,147		—		12,311		9,233		3,078		—
2019	11%	Due on demand - 6 months		—		2,960		—		2,960		—		—		—		—		—
					$	16,919	$	5,053	$	11,866		—	$	16,648	$	9,233	$	7,415		—
		Current			$	15,719	$	4,556	$	11,163		—	$	12,448	$	6,054	$	6,394		—
		Non-current			$	1,200	$	497	$	703		—	$	4,200	$	3,179	$	1,021		—
Notes payable - related party
2016	10%	Due on demand		—		270		—		270		—		270		—		270		—
2017	10%	Due on demand		—		27		—		27		—		39		—		39		—
2018	11%	Due on demand		—		159		—		159		—		159		—		159		—
2019	10%	Due on demand		—		14		—		14		—		—		—		—		—
					$	470	$	—	$	470		—	$	468	$	—	$	468		—
		Current			$	470	$	—	$	470		—	$	468	$	—	$	468		—
Convertible notes payable
2011	10%	5 years	$3.05		$	—	$	—	$	—	$	—	$	300	$	—	$	300		98
2014	10%	Due on demand - 2 years	$3.05 - $3.60			538		—		538		192		519		—		519		184
2016	10%	1 year	$	4.50		62		—		62		17		61		—		61		17
2017	10%	Due on demand - 1 year	$3.50 - $4.50			1,568		8		1,560		516		2,820		349		2,471		899
2018	6% - 10%	Due on demand - 2 years	$3.50 - $10.00			9,860		1,363		8,497		1,656		19,556		6,169		13,387		3,664
2019	10%	Due on demand - 1 year	$3.50 - $7.60			8,210		4,550		3,660		2,193		—		—		—		—
					$	20,238	$	5,921	$	14,317		4,574	$	23,256	$	6,518	$	16,738		4,862
		Current			$	20,092	$	5,814	$	14,278		4,532	$	16,604	$	5,351	$	11,253		3,981
		Non-current			$	146	$	107	$	39		42	$	6,652	$	1,167	$	5,485		881
Convertible notes payable - related party
2012	10%	Due on demand	$	3.30	$	200	$	—	$	200		64	$	200	$	—	$	200		74
2015	10%	2 years	$	4.50		200		—		200		61		200		—		200		58
2017	10%	2 years	$	10.00		5,000		123		4,877		557		5,000		311		4,689		533
2018	10%	2 years	$	10.00		9,400		497		8,903		1,018		9,400		871		8,529		972
					$	14,800	$	620	$	14,180		1,700	$	14,800	$	1,182	$	13,618		1,637
		Current			$	14,800	$	620	$	14,180		1,700	$	5,400	$	311	$	5,089		665
		Non-current			$	—	$	—	$	—		—	$	9,400	$	871	$	8,529		972
		Total			$	52,427	$	11,594	$	40,833		6,274	$	55,172	$	16,933	$	38,239		6,499

Schedule of contractual principal payments of notes payable

Contractual principal payments due on notes payable are as follows (in thousands):

Year Ending
2019 (six months)	$	28,962
2020		23,465
Total	$	52,427

Schedule of fair value assumptions for warrants issued in conjunction with notes

The fair value of the warrants issued in conjunction with notes was determined using the Binominal Monte-Carlo Cliquet Option Pricing Model with the following inputs for the year ended December 31, 2018.

	Year ended December 31, 2018
Stock price	$	11.10
Exercise price	$	11.30
Term	5 years
Risk‑free interest rate		3.05	%
Expected dividend yield		—
Expected volatility		70.0	%