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Debt | 12 Months Ended
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Dec. 31, 2021
Debt Disclosure [Abstract] |
Debt | Note 11: Debt Loan facilities During 2020, the Company entered into a debtor in possession credit agreement (the DIP Loan) to provide it with financing to fund certain cash requirements during the CCAA proceedings. Proceeds from the DIP Loan totaled $6,150,000. As of December 31, 2020, the full balance of the DIP Loan was fully paid/settled as follows: •$1 million settled against accounts receivable related to an engineering agreement; •$2.55 million converted into convertible debentures (see below); •$100 thousand repaid in cash; and •$2.5 million settled against accounts receivable related to a licensing manufacturing agreement. On November 30, 2020, the Company entered into a loan agreement (the SRED Financing) to raise funds against the Company’s present and after acquired personal property. The proceeds from the first draw totaled $0.6 million (CDN$750,000), which was outstanding at December 31, 2020. On February 5, 2021, March 5, 2021 and September 17, 2021 the Company raised additional funds from the second, third and fourth draws under the SRED financing of $274,715 (CDN$350,000), $274,715 (CDN$350,000) and $745,655 (CDN$950,000) respectively, totaling year to date gross proceeds of $1,295,085 (CDN$1,650,000) net of financing fees of $32,770 (CDN$41,750). The loan agreement for all tranches carried an interest rate of 1.6% per month, compounded monthly (20.98%). The loan was sanctioned against the Company’s tax credit refund. The first, second and third draws, including interest of $136,900 (CDN$174,417), were repaid through proceeds from the Company’s tax credit refund of $1,093,230 (CDN$ 1,392,831) and the balance of $184,558 (CDN$ 235,132) was paid from the fourth draw. The remaining loan balance, including interest, of $816,964 (CDN$1,044,177) was repaid on December 16, 2021. Interest expense on the SRED Financing amounted to $209,856 and $6,193 for the years ended December 31, 2021 and 2020, respectively. Convertible debentures At December 31, 2020, convertible debentures consisted of the following:
(amounts in thousands) |  | 2021 |
6% Convertible debentures due December 31, 2023 |  | $ | 8,183 |
Accrued interest |  |  | 322 |
Total obligation |  |  | 8,505 |
Debt discount |  |  | (4,183 | )
Net |  | $ | 4,322 |
In December 2019, the Company entered into convertible debenture agreements with a total principal amount of $1.7 million due on June 30, 2025. In March 2020, the maturity date was amended to December 31, 2023. The convertible debentures had an interest rate of 6% per annum and were secured by the Company’s assets. Finance fees incurred for the issuance of the convertible debentures amounting to $73,608 were recorded as a debt discount. The Company also granted to a note holder warrants to purchase 53,312 common shares of the Company. The fair value of these warrants of $45,971 was initially recorded as liability and debt discount. During March 2020, the Company entered into additional convertible debenture agreements with a total principal amount of $3.9 million due on December 31, 2023. The convertible debentures had an interest rate of 6% per annum and were secured by the Company’s assets. Finance fees amounting to $0.4 million incurred for the issuance of the convertible debentures were recorded as debt discount. The Company also granted to the note holders warrants to purchase 2,160,215 common shares of the Company. The fair value of these warrants of $1,707,943 was initially recorded as liability and debt discount. During October 2020, the Company settled a portion of its DIP Loan amounting to $2.6 million through the issuance of convertible debentures with a maturity date of December 31, 2023. The convertible debentures had an interest rate of 6% per annum and were secured by the Company’s assets. The Company also granted to the noteholders warrants to purchase 4,468,280 common shares of the Company. The fair value of these warrants of $3.6 million was initially recorded as liability and debt discount up to the face value of the convertible debt, and a finance expense of $1.0 million was recorded in the statement of operations for the year ended December 31, 2020 for the remaining portion. During April 2021, the Company entered into convertible debenture agreements with a total principal amount of $5.9 million due on December 31, 2023. The convertible debentures carried an interest rate of 6% per annum and were secured by the Company’s assets. Finance fees incurred for the issuance of the convertible debentures amounting to $0.4 million were recorded as a debt discount, resulting in net cash proceeds to the Company of $5.5 million. Per terms of the convertible debenture agreements, upon the closing of an equity financing, all of the outstanding principal and accrued interest shall convert at a price equal to the lower of CDN$0.15 (USD$0.12) and 80% of the per share price paid by the investors in such financing. The Company also granted to the note holders warrants to purchase 2,947,058 common shares of the Company. The fair value of these warrants of $2.6 million was initially recorded as a liability and debt discount. The debt discount on the convertible debentures was amortized over the term of the related convertible debentures. For the years ended December 31, 2021 and 2020, the amortization of the debt discount amounted to $2.1 million and $0.6 million, respectively. On December 16, 2021, per the Arrangement Agreement the principal balance and accrued interest thereon on all the outstanding convertible debentures were converted into Peraso Shares at a price equal CDN$0.15, or USD$0.12. The recorded debt discount was amortized to interest expense using the effective interest rate method over the terms of the related convertible debentures. During the years ended December 31, 2021 and 2020, the amortization of the debt discount amounted to $2.1 million and $0.6 million, respectively. For the years ended December 31, 2021 and 2020, interest expense on the convertible debentures amounted to $0.7 million and $0.3 million, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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