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NOTES PAYABLE | 9 Months Ended
--- | ---
Sep. 30, 2022
Notes Payable |
NOTES PAYABLE | 15. NOTES PAYABLE Notes payable at September 30, 2022 and December 31, 2021, were comprised of the following:
Schedule of notes payable |  | Interest rate |  | Due date |  | September 30, 2022 |  |  | December 31, 2021 |
Short-term notes payable |  | 12.0% |  | Nov. 2022 |  | $ | 35,000 |  |  | $ | 118,000 |
10% original issue discount senior secured notes |  |  |  |  |  |  | - |  |  |  | 65,972,000 |
AGREE Madison secured construction loans |  | 7.0% |  | January 1, 2025 |  |  | 58,351,000 |  |  |  | 55,055,000 |
SMC line of credit |  | 15.5% |  | June 11, 2023 |  |  | 2,500,000 |  |  |  | - |
SMC installment notes |  | 7.6% |  | June 18, 2024 |  |  | 177,000 |  |  |  | - |
SMC notes payable |  | 6.0% |  | Sept. 2024-Feb. 2025 |  |  | 353,000 |  |  |  | - |
XBTO note payable |  | 12.5% |  | December 30, 2023 |  |  | 3,384,000 |  |  |  | - |
10% secured promissory notes |  | 10.0% |  | August 10, 2023 |  |  | 10,093,000 |  |  |  | - |
Short-term bank line of credit |  | 4.7% |  | Renews monthly |  |  | 2,325,000 |  |  |  | 960,000 |
Total notes payable |  |  |  |  |  | $ | 77,218,000 |  |  | $ | 122,105,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Unamortized debt discounts |  |  |  |  |  |  | (1,776,000 | ) |  |  | (27,496,000 | )
Total notes payable, net |  |  |  |  |  | $ | 75,442,000 |  |  | $ | 94,609,000 |
Less: current portion |  |  |  |  |  |  | (17,132,000 | ) |  |  | (39,554,000 | )
Notes payable – long-term portion |  |  |  |  |  | $ | 58,310,000 |  |  | $ | 55,055,000 |
10% Secured Promissory Notes On August 10, 2022, the Company, through its BNI subsidiary, entered into a note purchase agreement providing for the issuance of secured promissory notes with an aggregate principal face amount of $11,000,000 and an interest rate of 10%. The purchase price (proceeds to the Company) for the secured promissory notes was $10.0 million. The secured promissory notes have a security interest in $10 million of marketable securities and investments and certain Bitcoin mining equipment with a carrying amount of $23.1 million. The secured promissory notes are further secured by a guaranty provided by the Company, Ault Lending and by Milton C. Ault, the Executive Chairman of the Company. The maturity date of the secured promissory notes is August 10, 2023. The Company is required to make monthly payment (principal and interest) of $1,000,000 on the tenth calendar day of each month, starting in September 2022. Provided that the Company makes the first six monthly payments in full and on a timely basis, after six months, the Company may elect to pay a forbearance fee of $250,000 in lieu of a monthly payment, which would extend the maturity date of the related secured promissory notes by one month for each forbearance. The Company may not elect forbearance in consecutive months. SMC Debt Security Interest The SMC debt is secured by a perfected security interest in all SMC assets including a first-priority security interest in SMC accounts receivable and inventory. Amortization of Debt Discount of Secured Promissory Notes During the three months ended March 31, 2022, the $66 million Secured Promissory Notes were repaid and the Company fully amortized the related debt discount of $26.3 million, which is included within interest expense on the condensed consolidated statements of operations. The following table summarizes the principal maturity schedule for our notes payable outstanding as of September 30, 2022:
Schedule of principal maturity |  |  |  |  |
Year |  |  | Principal |
2022 |  |  | $ | 18,049,000 |
2023 |  |  |  | 818,000 |
2024 |  |  |  | - |
2025 |  |  |  | 58,351,000 |
Total |  |  | $ | 77,218,000 |

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