Notes Receivable, Net and Other

6 Months Ended

Jun. 30, 2023

Notes receivable, net are summarized in the table below (dollars in thousands):


	Interest Rate		June 30, 2023		December 31, 2022




Certificate of Occupancy Note (1) (3)
Face amount	7.0	%	$	5,250	$	5,250
Discount (2)			(9)		(188)

Notes receivable, net			$	5,241	$	5,062

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(1) The outstanding principal balance and all accrued and unpaid interest is due and payable on or before July 9, 2025. The note was paid in full on July 14, 2023.

(2) The discount represents the imputed interest during the interest-free period. Interest begins accruing on July 9, 2023.

(3) The note receivable is secured by the 1.65-acre land parcel adjacent to the Hilton St. Petersburg Bayfront.

No cash interest income was recorded for the three and six months ended June 30, 2023 and 2022.

We recognized discount amortization income as presented in the table below (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Line Item	2023		2022		2023		2022
Other income (expense)	$	90	$	84	$	179	$	166

On September 1, 2022, the Company sold the Sheraton Ann Arbor. See note 5. Under the purchase and sale agreement, $1.5 million of the sales price is deferred, interest free, until the last day of the 24th month following the closing date (September 30, 2024). The components of the receivable, which is included in “other assets” in the consolidated balance sheet, are summarized below (dollars in thousands):


	Imputed Interest Rate		June 30, 2023		December 31, 2022
Deferred Receivable
Face amount	10.0	%	$	1,500	$	1,500
Discount (1)			(176)		(240)
			$	1,324	$	1,260

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(1) The discount represents the imputed interest during the interest-free period.

We recognized discount amortization income as presented in the table below (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
Line Item	2023			2023
Other income (expense)	$	32		$	64

We review receivables for impairment each reporting period. Under the model, the Company estimates credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument and is required to record a credit loss expense (or reversal) in each reporting period. Our assessment of impairment is based on considerable management judgment and assumptions. No impairment charges were recorded for the three and six months ended June 30, 2023 and 2022.