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Debt
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Debt

10. DEBT

As of September 30, 2019, notes payable consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Secured financing, net of deferred financing charges

 

$

750

 

 

$

922

 

Notes payable- due to affiliates, unsecured, net of $0.7 million and $0.8 million discount and unamortized deferred financing charges, respectively

 

 

4,981

 

 

 

4,903

 

Unsecured financing, net of deferred financing charges

 

 

595

 

 

 

595

 

Total notes payable

 

$

6,326

 

 

$

6,420

 

 

As of September 30, 2019, net maturities and/or curtailment obligations of all borrowings are as follows:

 

2019

 

$

 

2020

 

 

4,981

 

2021

 

 

 

2022

 

 

1,315

 

2023 and thereafter

 

 

30

 

Total

 

$

6,326

 

 

As of September 30, 2019, the Company had no credit facilities or project related loans scheduled to mature during the remainder of 2019.

Secured financing

As of September 30, 2019 and December 31, 2018, the Company had two secured loans related to Comstock Environmental. One loan was used to finance the acquisition of Comstock Environmental, and carries a fixed interest rate of 6.5%, with a maturity date of October 17, 2022. At September 30, 2019 and December 31, 2018, this financing had an outstanding balance of $720 thousand and $874 thousand, respectively. Comstock Environmental has an additional secured loan with an outstanding balance of $30 thousand as of September 30, 2019 and an outstanding balance of $34 thousand as of December 31, 2018 to fund the purchase of an asset used in the business. This financing is secured by the assets of Comstock Environmental and is guaranteed by our Chief Executive Officer.

During 2018, the Company opened a secured line of credit with a maximum capacity of $0.2 million, which was paid in full during the three months ended March 31, 2019. Interest charged on this line of credit was based on the prime rate plus 2.50%. As of December 31, 2018, there was $13 thousand of principal and interest outstanding on this line of credit, and the interest rate was 6.75%.

Unsecured financing

As of September 30, 2019 and December 31, 2018, the Company had one unsecured seller-financed promissory note with an outstanding balance of $595 thousand. This financing carries an annual interest rate of LIBOR plus 3% and has a maturity date of July 17, 2022. This loan has $50 thousand due on the third and fourth loan anniversary dates with the remainder due at maturity. At September 30, 2019 and December 31, 2018, the interest rate was 5.0% and 6.0%, respectively.

Notes payable to affiliate – unsecured

Comstock Growth Fund

On October 17, 2014, the Company entered into an unsecured promissory note with CGF whereby CGF made a loan to the Company in the initial principal amount of $10.0 million and a maximum amount available for borrowing of up to $20.0 million with a three-year term. On December 18, 2014, the loan agreement was amended and restated to provide for a maximum capacity of $25 million. On May 23, 2018, the Company entered into a Membership Interest Exchange and Subscription Agreement (the “Membership Exchange Agreement”), together with a revised promissory note agreement, in which a note (“CGF Note”) with an outstanding principal and accrued interest balance of $7.7 million was exchanged for 1,482,300 shares of the Company’s Series C Non-Convertible Preferred Stock, par value $0.01 per share and a stated liquidation value of $5.00 per share (the “Series C Preferred Stock”), issued by the Company to CDS. The Company exchanged the preferred equity for 91.5% of CDS membership interest in the Comstock Growth Fund promissory note. Concurrently, the face amount of the CGF Note was reduced to $5.7 million as of the Effective Date. The loan bears interest at a fixed rate of 10% per annum. Interest payments are made monthly in arrears. The Company is the administrative manager of CGF but does not own any membership interests. The Company had approximately $5.0 million and $4.9 million of outstanding borrowings and accrued interest under the CGF loan, net of discounts, as of September 30, 2019 and December 31, 2018. The maturity date for the CGF loan is April 16, 2020.

For the three and nine months ended September 30, 2019, the Company made interest payments of $0.1 million and $0.4 million, respectively.  For the three and nine months ended September 30, 2018, the Company made interest payments of $0.2 million and $0.5 million, respectively.

During the three and nine months ended September 30, 2019 and 2018, the Company did not make principal payments for the CGF loan.