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Line of Credit
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Line of Credit

13. Line of Credit

 

Line of Credit – In connection with the Arena Notes Default (as further described below in Note 25) there was a cross-default under the SLR Digital Finance LLC (“SLR” and the “SLR Default”) financing and security agreement for a line of credit (the “Line of Credit”), where the Line of Credit, as amended, was terminated. In connection with the termination, the Company paid SLR $3,448 with the proceeds from the Simplify Loan as described in Note 17, representing the amount due on the outstanding loan balance, accrued interest, certain fees and contingency reserves other fees in connection with the termination. In connection with the SLR Default, SLR no longer provided funding under the Line of Credit while paying down the Line of Credit with payments received from the Company’s customers in accordance with the terms of the agreement.

 

As of December 31, 2023, in connection with the SLR Default, the Company recorded a $900 termination fee representing 2.25% of the maximum line amount, and the current portion of the unamortized debt costs of $209 was reflected in prepayment and other current assets and the noncurrent portion of $209 was reflected in other long-term assets on the consolidated balance sheets. As of December 31, 2024 and 2023, the outstanding balance under the Line of Credit was $0 and $19,609, respectively.

 

The Company has refinanced the Line of Credit with a new credit facility with Simplify, as further described in Note 17.

 

Information for the years ended December 31, 2024 and 2023, with respect to interest expense related to the Line of Credit is provided under the heading Interest Expense in Note 18.