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NOTES PAYABLE | 12 Months Ended
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Dec. 31, 2021
Notes Payable |
NOTES PAYABLE | 24. NOTES PAYABLE Notes payable at December 31, 2021 and 2020, were comprised of the following. Schedule of notes payable
|  | Interest Rate |  |  | Due Date |  |  | December 31, 2021 |  |  | December 31, 2020 |
Esousa purchased notes |  |  |  |  |  |  |  |  |  | $ | - |  |  | $ | 200,000 |
Short-term notes payable |  |  | 12.0% |  |  |  | 2022 |  |  |  | 118,000 |  |  |  | 1,148,000 |
10% original issue discount senior secured notes |  |  | 8.0% |  |  |  | March 31, 2022 |  |  |  | 65,972,000 |  |  |  | - |
AGREE Madison secured construction loans |  |  | 7.0% |  |  |  | January 1, 2025 |  |  |  | 55,055,000 |  |  |  |  |
Paycheck Protection Program Loans |  |  | 1.0% |  |  |  |  |  |  |  | - |  |  |  | 1,162,000 |
Short-term bank line of credit |  |  | 3.9% |  |  |  | 2021 |  |  |  | 960,000 |  |  |  | 1,421,000 |
Total notes payable |  |  |  |  |  |  |  |  |  | $ | 122,105,000 |  |  | $ | 3,931,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unamortized debt discounts |  |  |  |  |  |  |  |  |  |  | (27,496,000 | ) |  |  | - |
Total notes payable, net |  |  |  |  |  |  |  |  |  | $ | 94,609,000 |  |  | $ | 3,931,000 |
Less: current portion |  |  |  |  |  |  |  |  |  |  | (39,554,000 | ) |  |  | (3,595,000 | )
Other |  |  |  |  |  |  |  |  |  |  | - |  |  |  | 336,000 |
Notes payable – long-term portion |  |  |  |  |  |  |  |  |  | $ | 55,055,000 |  |  | $ | 336,000 |
During the years ended December 31, 2021 and 2020, the Company recorded amortization of debt discounts of $1.1 million and $7.3 million, respectively. December 2021 Secured Promissory Notes On December 30, 2021, the Company entered into a securities purchase agreement with certain sophisticated investors providing for the issuance of:
| ● | secured promissory notes (the “Secured Promissory Notes”) that bear interest at 8% per annum with an aggregate principal face amount of approximately $66 million including a 10% original issue discount;
| ● | five-year warrants to purchase an aggregate of 14,095,350 shares of the Company’s common stock at an exercise price of $2.50, subject to adjustment; and
| ● | five-year warrants to purchase an aggregate of 1,942,508 shares of Common Stock (the “Class B Warrant Shares”) at an exercise price of $2.50 per share, subject to adjustment. The Class B Warrant Shares are deemed to be a derivative instrument.
The Secured Promissory Notes were repaid in March 2022 (see Note 33). AGREE Madison Construction Loan Agreements On December 22, 2021, AGREE Madison, through various wholly-owned subsidiaries, entered into construction loan agreements. The outstanding balances under the construction loans was $55.1 million as of December 31, 2021. The construction loans are due on January 1, 2025, but may be extended for two additional 12-month terms, subject to certain terms and conditions as set forth in the construction loan agreements. The loans accrue interest at a rate equal to the greater of (i) the LIBOR Rate plus 675 basis points or (ii) 7% per annum. The AGREE Madison subsidiaries will make monthly installment payments of interest only, starting January 1, 2022. Ault Alliance also provided a completion guaranty to the lenders for the completion of the property improvement plans. Notes Payable Maturities The contractual maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of December 31, 2021 were: Schedule Of Maturities
Year |  |  |  |
2022 |  | $ | 67,504,000 |
2023 |  |  | - |
2024 |  |  | - |
2025 |  |  | 55,055,000 |
Total |  | $ | 122,559,000 |

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