XML 31 R18.htm IDEA: XBRL DOCUMENT v3.23.1
Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt
10.
Debt

 

Long-term debt

 

Long-term debt consists of the following (in thousands):

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Term Loan

 

$

5,000

 

 

$

5,000

 

Less: current portion

 

 

(242

)

 

 

-

 

Total long-term debt

 

$

4,758

 

 

$

5,000

 

 

On December 8, 2021, the Company’s subsidiary, AST & Science Texas, LLC, executed an agreement to purchase real property, including offices, industrial warehouse buildings and equipment for a total purchase price of $8.0 million. In connection with the purchase, AST & Science Texas, LLC entered into an agreement with Lone Star State Bank of West Texas (the “Credit Agreement”) to issue a term promissory note (the “Term Loan”) for $5.0 million with a maturity date of December 8, 2028 that is secured by the property.

 

Borrowings under the Term Loan bear interest at a fixed rate equal to 4.20% per annum until December 2026, and from December 2026 until December 2028 at a fixed rate per annum equal to 4.20% subject to adjustment if the index rate as defined in the Credit Agreement is greater than 4.20%. Interest is payable monthly in arrears commencing in January 2022. Thereafter, outstanding principal and accrued interest will be due and payable in monthly installments of $40,000, commencing in January 2023 and continuing until November 2028, with the final remaining balance of unpaid principal and interest due and payable in December 2028. As of December 31, 2022 and December 31, 2021, accrued interest payable in connection with this Term Loan was immaterial.

 

As of December 31, 2021, the carrying amount of the Term Loan approximated its fair value as the contractual interest rate for the Term Loan was representative of the then market interest rate. As of December 31, 2022, the estimated fair value of the Term Loan is $4.3 million due to current higher market interest rates as compared to the contractual interest rate for the Term Loan. The fair value of the Term Loan is classified as Level 2 in the fair value hierarchy as the fair value is determined based on the market participants’ view of the yield on a similar loan.

 

Annual future principal payments due on the Term Loan as of December 31, 2022 are as follows (in thousands):

 

Fiscal Years Ending

 

Amount

 

2023

 

$

242

 

2024

 

 

252

 

2025

 

 

263

 

2026

 

 

274

 

2027

 

 

286

 

Thereafter

 

 

3,683

 

Total principal

 

$

5,000

 

 

Nano Business Credit Agreement

 

On December 8, 2021, the Company’s former subsidiary, Nano, entered into an agreement with AB SEB Bank (the “Lender”) pursuant to which the Lender agreed to provide up to $0.4 million (the “Business Credit”) to fund certain capital expenditures. Borrowings under the agreement bore interest at a rate per annum equal to the EURIBOR plus 3.00%. Upon closing of the Nano Share Sale on September 6, 2022, the full outstanding balance under the Business Credit Agreement was repaid by the acquiror in accordance with the sale and purchase agreement. Refer to Note 16 for further information on the sale of Nano.