Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.23.1
Related Party Transactions
3 Months Ended
Mar. 31, 2023
Related Party Transactions  
Related Party Transactions

16. Related Party Transactions

As of December 31, 2022, the Company had a payable of $27,090 due to the Company’s former Chief Executive Officer (“CEO”) related to the acquisition of all assets and assumption of all liabilities of Jupiter. Of this amount, $23,016 is included in notes payable and $4,074 is included in accounts payable and accrued liabilities in the condensed consolidated balance sheet as of December 31, 2022. The $23,016 included in notes payable was due on April 1, 2023 and bore interest at 8.0%. On February 15, 2023, the Company refinanced the payable as part of its 2023 Refinanced Notes. As of March 31, 2023, the balance of the payable was $19,077, which is included in notes payable in the condensed consolidated balance sheet as of March 31, 2023. The payable bears interest at 16% or the prime rate plus 8.5% (16.5% as of March 31, 2023) and is due on February 15, 2026. The $4,074 included in accounts payable and accrued liabilities was reclassified as part of the 2023 New Notes entered into on February 15, 2023, and is now included in notes payable with a balance of $4,171 on the condensed consolidated balance sheet as of March 31, 2023. This payable bears interest at 16% or the prime rate plus 8.5% (16.5% as of March 31, 2023) and is due on February 15, 2027.

As of December 31, 2022, the Company had another payable of $1,677 due to the Company’s former CEO related to the issuance of the 2019 Senior Notes that was payable to a company partially owned and managed by the Company’s former CEO. The payable bore interest at 8.0% and was included in notes payable in the condensed consolidated balance sheet as of December 31, 2022. On February 15, 2023, the 2019 Senior Notes were repaid and retired, and this payable was settled.

The Company also has a payable to a current Board member of $1,879 as of March 31, 2023. Of this amount, $1,542 is related to the 2023 Refinanced Notes and is included in notes payable in the condensed consolidated balance sheet as of March 31, 2023. This payable bears interest at 16.5% and is due on February 15, 2026. The remaining $337 is related to the 2023 New Notes and is included in accounts payable and accrued liabilities in the condensed consolidated balance sheet as of March 31, 2023. This payable bears interest at 16.5% and is due on February 15, 2027.

In connection with the 2023 Refinanced Notes, the Company issued 91,999,901 Debt Modification Warrants to the Holders. Of this amount, 45,539,951 Debt Modification Warrants were issued to the Company’s former CEO, and 3,679,996 Debt Modification Warrants were issued to a current Board member.