Notes Payable to Related Parties

12 Months Ended

Dec. 31, 2018

NOTE 9—NOTES PAYABLE TO RELATED PARTIES

Notes payable to related parties consisted of the following at December 31, 2018 and 2017 (in thousands):

	December 31,
	2018		2017
Class B promissory notes	$	—	$	200
Class C promissory notes		—		667
0% promissory note due 3/31/19		—		44
8% secured promissory notes due 3/31/19		—		1,050
8% promissory notes due 3/31/19		—		2,031
Total face amount		—		3,992
Less unamortized discount		—		(236	)
Total carrying value		—		3,756
Amount classified as current		—		441
Amount classified as long-term	$	—	$	3,315

The Class B and C promissory notes were issued by the Company in December 2016 in connection with the acquisition of Cooltech Distribution prior to the Merger. The notes were non-interest bearing and were due upon the closing of an initial public offering by the Company. The Class B notes were paid in June 2018, and the Class C notes were retired on August 15, 2018 as part of the debt exchange described in Note 13. The 0% promissory note was issued in connection with the acquisition of OneClick License, and was retired in June 2018. The 8% secured promissory notes were assumed in the October 2017 acquisition of OneClick International, of which $494,000 was retired in the August 15, 2018 debt exchange, and $556,000 was refinanced in September 2018 as part of a note consolidation. The 8% promissory notes were also issued in October 2017 in connection with the OneClick acquisitions, with $1,768,000 retired in the August 15, 2018 debt exchange, and $263,000 offset in August 2018 against receivables owed to the Company by the lenders. Interest expense related to these notes during the years ended December 31, 2018 and 2017 was $480,000 and $148,000, respectively, including accretion of the $236,000 unamortized discount.