Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE (Tables)

v3.21.2
NOTES PAYABLE (Tables)
6 Months Ended
Jun. 30, 2020
Schedule of notes payable

Notes payable consisted of the following at June 30, 2020 and December 31, 2019 (in thousands):

 

Year

Issued

 

Interest Rate

Range

 

 

Term of Notes

 

Conversion

Price

 

 

Principal

Outstanding June 30, 2020

 

 

Discount

Amount June 30, 2020

 

 

Carrying

Amount June 30, 2020

 

 

Shares

Underlying June 30, 2020

 

 

Notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

10%

 

 

Due on demand

 

 

 

 

$

928

 

 

$

 

 

$

928

 

 

 

 

 

2019

 

11%

 

 

Due on demand - 6 months

 

 

 

 

 

2,839

 

 

 

 

 

 

2,839

 

 

 

 

 

2020

 

1% - 11%

 

 

Due on demand - 2 years

 

 

 

 

 

992

 

 

 

 

 

 

992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,759

 

 

$

 

 

$

4,759

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

$

4,271

 

 

$

 

 

$

4,271

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

$

488

 

 

$

 

 

$

488

 

 

 

 

 

Notes payable - related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

10%

 

 

Due on demand

 

 

 

 

$

20

 

 

$

 

 

$

20

 

 

 

 

 

2019

 

10%

 

 

Due on demand

 

 

 

 

 

14

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

34

 

 

$

 

 

$

34

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

$

34

 

 

$

 

 

$

34

 

 

 

 

 

Convertible debentures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

10%

 

 

18 months

 

$2.00-$9.52

 

(a)

$

9,200

 

 

$

1,606

 

 

$

7,594

 

 

 

4,638,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

9,200

 

 

$

1,606

 

 

$

7,594

 

 

 

4,638,333

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

$

9,200

 

 

$

1,606

 

 

$

7,594

 

 

 

4,638,333

 

 

Convertible notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

12%

 

 

3 years

 

$

10.00

 

(b)

$

3,150

 

 

$

 

 

$

3,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,150

 

 

$

 

 

$

3,150

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

$

3,150

 

 

$

 

 

$

3,150

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

$

17,143

 

 

$

1,606

 

 

$

15,537

 

 

 

4,638,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Issued

 

Interest Rate

Range

 

 

Term of Notes

 

Conversion

Price

 

 

Principal

Outstanding

December 31,

2019

 

 

Discount

Amount

December 31,

2019

 

 

Carrying

Amount

December 31,

2019

 

 

Shares

Underlying

Notes

December 31, 2019

 

 

Notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

10%

 

 

Due on demand

 

 

 

 

$

920

 

 

$

 

 

$

920

 

 

 

 

 

2019

 

11%

 

 

Due on demand - 6 months

 

 

 

 

 

2,829

 

 

 

 

 

 

2,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,749

 

 

$

 

 

$

3,749

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

3,749

 

 

 

 

 

 

3,749

 

 

 

 

 

Notes payable - related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

10%

 

 

Due on demand

 

 

 

 

$

20

 

 

$

 

 

$

20

 

 

 

 

 

2018

 

11%

 

 

Due on demand

 

 

 

 

 

159

 

 

 

 

 

 

159

 

 

 

 

 

2019

 

10%

 

 

Due on demand

 

 

 

 

 

14

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

$

193

 

 

$

 

 

$

193

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

$

193

 

 

$

 

 

$

193

 

 

 

 

 

Convertible debentures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

10%

 

 

18 months

 

$2.00-$9.52

 

(a)

$

10,200

 

 

$

3,185

 

 

$

7,015

 

 

 

1,080,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,200

 

 

$

3,185

 

 

$

7,015

 

 

 

1,080,415

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

$

10,200

 

 

$

3,185

 

 

$

7,015

 

 

 

1,080,415

 

 

Convertible notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

10%

 

 

2 years

 

$

10.00

 

(b)

$

3,000

 

 

$

5

 

 

$

2,995

 

 

 

363,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,000

 

 

$

5

 

 

$

2,995

 

 

 

363,876

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

$

3,000

 

 

$

5

 

 

$

2,995

 

 

 

363,876

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

$

17,142

 

 

$

3,190

 

 

$

13,952

 

 

 

1,444,291

 

 

(a)

The notes are convertible to Emmaus Life Sciences, Inc. shares.

(b)

The notes are convertible to EMI Holding, Inc. shares.

 

Schedule of future contractual principal payments of notes payable

As of June 30, 2020, future contractual principal payments due on notes payable were as follows:

 

Year Ending

 

 

 

2020 (six months)

$

9,040

 

2021

 

4,732

 

2022

 

221

 

2023

 

3,150

 

Total

$

17,143

 

Conversion Feature Liabilities [Member] | Senior Secured Convertible Debentures [Member]  
Schedule of fair value of conversion feature liabilities The following table sets forth the fair value of the conversion feature liabilities as of June 30, 2020 and December 31, 2019 (in thousands):

 

 

 

Six Months Ended

 

 

Year ended

 

Conversion feature liabilities - Amended and Restated 10% Senior Convertible Debentures

 

June 30, 2020

 

 

December 31, 2019

 

Balance, beginning of period

 

$

1

 

 

$

 

Fair value at issuance date

 

 

 

 

 

132

 

Fair value at debt modification date

 

 

118

 

 

 

 

Change in fair value included in the statement of comprehensive income (loss)

 

 

(6

)

 

 

(131

)

Balance, end of period

 

$

113

 

 

$

1

 

 

Schedule of fair value based upon assumptions

 

The fair values as of June 30, 2020, the February 21, 2020 modification date and December 31, 2019 were based upon following assumptions:

 

June 30, 2020

 

February 21, 2020

(Modification date)

 

December 31, 2019

 

Stock price

$

1.67

 

$

1.89

 

$

1.97

 

Conversion price

$

2.00

 

$

3.00

 

$

9.52

 

Selected yield

 

15.73

%

 

19.12

%

 

16.77

%

Expected volatility (peer group)

 

100

%

 

65

%

 

50

%

Expected life (in years)

 

0.81

 

 

1.16

 

 

0.81

 

Expected dividend yield

 

 

 

 

 

 

Risk‑free rate

Term structure

 

Term structure

 

Term structure