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NOTES PAYABLE | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
NOTES PAYABLE | NOTES PAYABLE The following table summarizes our outstanding debt as of the dates indicated (in thousands):
| Maturity |  | Cash Interest Rate |  | September 30, 2024 |  | December 31, 2023
Notes Payable – Acquisitions(1) | 10/01/25 - 07/01/29 |  | 2.00% - 5.00% |  | $ | 9,943 |  |  | $ | 5,700 |
Gross Notes Payable |  |  |  |  | $ | 9,943 |  |  | $ | 5,700 |
(1)See Note 3 — Business Combinations and Asset Acquisitions and Notes Payable - Acquisitions section below for further discussion regarding the notes payable related to acquisitions. The following table summarizes the debt issuance costs as of the dates indicated (in thousands):
| Gross Notes Payable |  | Unamortized Debt Discount |  | Net Notes Payable
September 30, 2024 |  |  |  |  |
Current portion of notes payable | $ | 378 |  |  | $ | (378) |  |  | $ | — |
Notes payable, net of current portion | 9,565 |  |  | (2,059) |  |  | 7,506 |
Total | $ | 9,943 |  |  | $ | (2,437) |  |  | $ | 7,506 |
December 31, 2023 |  |  |  |  |
Current portion of notes payable | $ | 420 |  |  | $ | (393) |  |  | $ | 27 |
Notes payable, net of current portion | 5,280 |  |  | (998) |  |  | 4,282 |
Total | $ | 5,700 |  |  | $ | (1,391) |  |  | $ | 4,309 |
The following table summarizes the future principal payments related to our outstanding debt for the period presented below (in thousands):
| September 30, 2024
2024 | $ | — |
2025 | 2,578 |
2026 | 4,365 |
2027 | — |
2028 | — |
2029 | 3,000 |
Total | $ | 9,943 |
Notes Payable - Acquisitions In July 2024, we purchased substantially all of the assets of an applicant tracking technology company based out of South Dakota. In connection with the business combination, we delivered a promissory note to the seller. As of September 30, 2024, the promissory note had an outstanding principal balance of $3,000 and matures on July 1, 2029. In April 2024, we acquired certain assets of an Ohio based reseller partner, which were used to provide payroll processing services. In connection with the acquisition, we delivered a promissory note to the seller. As of September 30, 2024, the promissory note had an outstanding principal balance of $700 and matures on October 30, 2025. In February 2024, we acquired certain assets of a payroll processing and benefits brokerage servicer based in New Jersey. In connection with the acquisition, we delivered a promissory note to the seller. As of September 30, 2024, the promissory note had an outstanding principal balance of $963 and matures on February 22, 2026. In October 2023, we acquired certain assets of an Alabama based reseller partner, which were used to provide payroll processing services. In connection with the acquisition, we delivered a promissory note to the seller. As of September 30, 2024, the promissory note had an outstanding principal balance of $1,500 and matures on October 1, 2025. In April 2023, we calculated the final contingent consideration due in connection with the acquisition of a payroll business in September 2021. As a result, the fair value of the contingent consideration of $587 was added as an increase to the principal balance due on the promissory note. As of September 30, 2024, the promissory note had an outstanding principal balance of $3,780. See Note 3 — Business Combinations and Asset Acquisitions for further discussion regarding the issuance of notes payable related to acquisitions. Senior Credit Facility with Structural Capital Investments III, LP On September 12, 2023, we terminated the Loan and Security Agreement (the “Loan Agreement”), among the Company, Structural Capital Investments III, LP (“Structural” and together with the other lenders that were parties thereto, the “Lenders”), and Ocean II PLO LLC, as administrative and collateral agent for the Lender and repaid the outstanding balance on the secured promissory note issued under the Loan Agreement (the “Note”). In connection with the termination, the Company paid the Agent for the benefit of the Lenders an aggregate amount of $30,927 (the “Payoff Amount”) in full payment of our outstanding obligations under the Loan Agreement. The Payoff Amount represented $30,617 of outstanding principal and interest on the unpaid principal balance, a 1.0% prepayment fee in the amount of $306 and $5 for the accrued non-utilization fee and lender expenses associated with the extinguishment. As of September 30, 2024, there are no further amounts due or owing under the Facility. On August 7, 2023, we entered into an amendment to the Loan Agreement, whereby the Final Payment Fee (as defined in the Loan Agreement) was settled for $1,677 (the “Settled Amount”), which was paid on August 7, 2023. The Final Payment Fee was originally equal to 1.0% of the increase in our market capitalization since September 10, 2021, and was due upon payment in full of the obligations under the Loan Agreement. We also paid the Lenders a breakup fee equal to $250.

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