Quarterly report [Sections 13 or 15(d)]

Notes Payable (Tables)

v3.25.2
Notes Payable (Tables)
 6 Months Ended
Jun. 30, 2025
Schedule of notes payable

Notes payable consisted of the following at June 30, 2025 and December 31, 2024 (in thousands except for number of underlying shares):

 

Year
Issued

 

Interest Rate
Range

 

Term of Notes

 

Conversion
Price

 

 

Principal
Outstanding June 30, 2025

 

 

Unamortized Discount June 30, 2025

 

 

Capitalized Accrued Interest June 30, 2025

 

 

Carrying
Amount June 30, 2025

 

 

Underlying Shares June 30, 2025

 

Notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2013

 

10%

 

Due on demand

 

 

—

 

 

$

693

 

 

$

—

 

 

$

—

 

 

$

693

 

 

 

—

 

 2022

 

10%-12%

 

Due on demand

 

 

—

 

 

 

527

 

 

 

—

 

 

 

—

 

 

 

527

 

 

 

—

 

 2023

 

11%

 

Due on demand

 

 

—

 

 

 

3,278

 

 

 

—

 

 

 

—

 

 

 

3,278

 

 

 

—

 

 2024

 

30%

 

Due on demand

 

 

—

 

 

 

1,400

 

 

 

—

 

 

 

—

 

 

 

1,400

 

 

 

—

 

 2025

 

49% - 56%

 

20-38 weeks

 

 

—

 

 

 

2,516

 

 

 

147

 

 

 

—

 

 

 

2,369

 

 

 

—

 

 

 

 

 

 

 

 

 

$

8,414

 

 

$

147

 

 

$

—

 

 

$

8,267

 

 

 

—

 

 

 

 

Current

 

 

 

 

$

8,414

 

 

$

147

 

 

$

—

 

 

$

8,267

 

 

 

—

 

Notes payable - related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2020

 

12%

 

Due on demand

 

 

—

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

100

 

 

 

—

 

 2021

 

12%

 

Due on demand

 

 

—

 

 

 

700

 

 

 

—

 

 

 

—

 

 

 

700

 

 

 

—

 

 2022

 

10%-12%

 

Due on demand - 5 years

 

 

—

 

 

 

4,076

 

 

 

64

 

 

 

—

 

 

 

4,012

 

 

 

—

 

 2023

 

10%-60%

 

Due on demand

 

 

—

 

 

 

577

 

 

 

—

 

 

 

—

 

 

 

577

 

 

 

—

 

 

 

 

 

 

 

 

 

$

5,453

 

 

$

64

 

 

$

—

 

 

$

5,389

 

 

 

—

 

 

 

 

Current

 

 

 

 

$

3,132

 

 

$

—

 

 

$

—

 

 

$

3,132

 

 

 

—

 

 

 

 

Non-current

 

 

 

 

$

2,321

 

 

$

64

 

 

$

—

 

 

$

2,257

 

 

 

—

 

Convertible notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2021

 

10%

 

Due on demand

 

$

0.02

 

 

 

685

 

 

 

—

 

 

 

—

 

 

 

685

 

 

 

33,478,176

 

 2023

 

13%

 

Due on demand

 

$

10.00

 

(a)

 

3,150

 

 

 

—

 

 

 

—

 

 

 

3,150

 

 

 

398,695

 

 2023

 

10%

 

Due on demand

 

$

0.29

 

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

1,000

 

 

 

4,076,523

 

 2024

 

10%

 

Due on demand

 

$

0.02

 

 

 

11,030

 

 

 

—

 

 

 

939

 

 

 

11,969

 

 

 

200,000,000

 

 

 

 

 

 

 

 

 

$

15,865

 

 

$

—

 

 

$

939

 

 

$

16,804

 

 

 

237,953,394

 

 

 

 

Current

 

 

 

 

$

15,865

 

 

$

—

 

 

$

939

 

 

$

16,804

 

 

 

237,953,394

 

 

 

 

Total

 

 

 

 

$

29,732

 

 

$

211

 

 

$

939

 

 

$

30,460

 

 

 

237,953,394

 

 

Year
Issued

 

Interest Rate
Range

 

Term of Notes

 

Conversion
Price

 

 

Principal Outstanding December 31, 2024

 

 

Unamortized
Discount
December 31, 2024

 

 

Capitalized Accrued Interest
December 31, 2024

 

 

Carrying
Amount
December 31, 2024

 

 

Shares
Underlying
Notes
December 31, 2024

 

Notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2013

 

10%

 

Due on demand

 

 

—

 

 

$

638

 

 

$

—

 

 

$

—

 

 

$

638

 

 

 

—

 

 2022

 

10% - 12%

 

Due on demand

 

 

—

 

 

 

505

 

 

 

—

 

 

 

—

 

 

 

505

 

 

 

—

 

 2023

 

10% - 13%

 

Due on demand

 

 

—

 

 

 

3,200

 

 

 

—

 

 

 

—

 

 

 

3,200

 

 

 

—

 

 2024

 

30%-48%

 

Due on demand -34 weeks

 

 

—

 

 

 

2,854

 

 

 

104

 

 

 

—

 

 

 

2,750

 

 

 

—

 

 

 

 

 

 

 

 

 

$

7,197

 

 

$

104

 

 

$

—

 

 

$

7,093

 

 

 

—

 

 

 

 

Current

 

 

 

 

$

7,197

 

 

$

104

 

 

$

—

 

 

$

7,093

 

 

 

—

 

Notes payable - related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2020

 

12%

 

Due on demand

 

 

—

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

100

 

 

 

—

 

 2021

 

12%

 

Due on demand

 

 

—

 

 

 

700

 

 

 

—

 

 

 

—

 

 

 

700

 

 

 

—

 

 2022

 

10%-12%

 

Due on demand - 5 years

 

 

—

 

 

 

4,316

 

 

 

75

 

 

 

—

 

 

 

4,241

 

 

 

—

 

 2023

 

10%-60%

 

Due on demand

 

 

—

 

 

 

577

 

 

 

—

 

 

 

—

 

 

 

577

 

 

 

—

 

 

 

 

 

 

 

 

 

$

5,693

 

 

$

75

 

 

$

—

 

 

$

5,618

 

 

 

—

 

 

 

 

Current

 

 

 

 

$

3,372

 

 

$

—

 

 

$

—

 

 

$

3,372

 

 

 

—

 

 

 

 

Non-current

 

 

 

 

$

2,321

 

 

$

75

 

 

$

—

 

 

$

2,246

 

 

 

—

 

Convertible notes payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2021

 

2%

 

Due on Demand

 

$

0.13

 

 

 

895

 

 

 

—

 

 

 

—

 

 

 

895

 

 

 

39,455,164

 

 2023

 

13%

 

Due on Demand

 

$

10.00

 

(a)

 

3,150

 

 

 

—

 

 

 

—

 

 

 

3,150

 

 

 

378,388

 

 2023

 

10%

 

Due on Demand

 

$

0.29

 

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

1,000

 

 

 

3,905,526

 

 2024

 

10%

 

1 year

 

$

0.13

 

 

 

11,030

 

 

 

—

 

 

 

939

 

 

 

11,969

 

 

 

132,861,455

 

 

 

 

 

 

 

 

 

$

16,075

 

 

$

—

 

 

$

939

 

 

$

17,014

 

 

 

176,600,533

 

 

 

 

Current

 

 

 

 

$

16,075

 

 

$

—

 

 

$

939

 

 

$

17,014

 

 

 

176,600,533

 

 

 

 

Grand Total

 

 

 

 

$

28,965

 

 

$

179

 

 

$

939

 

 

$

29,725

 

 

 

176,600,533

 

 

 

(a)
This note is convertible into shares of EMI Holding, Inc., a wholly owned subsidiary of Emmaus Life Sciences, Inc.
Schedule of future contractual principal payments of notes payable

As of June 30, 2025, future contractual principal payments due on notes payable were as follows (in thousands):

 

Year Ending

 

 

2025 (six months)

$

27,411

 

2026

 

—

 

2027

 

2,321

 

Total

$

29,732

 
Schedule of Fair Value Based upon Assumptions

The fair value as of June 30, 2025 and December 31, 2024 was based upon following assumptions:

 

 

June 30, 2025

 

 

December 31, 2024

 

Principal outstanding (South Korean won)

 

KRW 17.0 billion

 

 

KRW 20.1 billion

 

Stock price

 

KRW 5354

 

 

KRW 5870

 

Expected life (in years)

 

 

5.30

 

 

 

5.79

 

Selected yield

 

 

13.25

%

 

 

9.50

%

Expected volatility (Telcon common stock)

 

 

66.55

%

 

 

62.90

%

Risk-free interest rate (South Korea government bond)

 

 

2.58

%

 

 

2.78

%

Expected dividend yield

 

 

—

 

 

 

—

 

Conversion price

 

KRW3,312(US$2.43)

 

 

KRW5,850(US$3.96)

 
Level 3 [Member] | Conversion Feature Liabilities [Member]  
Schedule of fair value of conversion feature liabilities The following table sets forth the fair value of the conversion feature liability as of December 31, 2024 (in thousands). As of June 30,

2025, the convertible promissory note became due and the conversion rate exceeded stock price and, therefore, the fair value of conversion feature was determined to be zero.

 

Convertible promissory notes

 

June 30, 2025

 

 

December 31, 2024

 

Balance, beginning of period

 

$

162

 

 

$

451

 

Change in fair value included in the statement of operations

 

 

(162

)

 

 

(289

)

Balance, end of period

 

$

—

 

 

$

162