Long-term loan

12 Months Ended

Dec. 31, 2022

In September 2020, Vedanta entered into a $15.0 million loan and security agreement with Oxford Finance LLC. The loan is secured by Vedanta's assets, including equipment, inventory and intellectual property. The loan bears a floating interest rate of 7.7 percent plus the greater of (i) 30 day U.S. Dollar LIBOR reported in the Wall Street Journal or (ii) 0.17 percent. The loan matures September 2025 and requires interest only payments prior to 2023. The loan also carries a final fee upon full repayment of 7.0 percent of the original principal, or $1.1 million. As part of the loan agreement, Vedanta also issued Oxford Finance LLC 12,886 Series C-2 preferred share warrants with an exercise price of $23.28 per share, expiring September 2030. The outstanding loan balance totaled approximately $15.4 million as of December 31, 2022.

The following table summarizes long-term loan activity for the years ended December 31, 2022 and 2021:


	Long-term loan
	2022 $000s	2021 $000s

Balance at January 1,	15,118	14,818

Accrued interest	1,755	1,502
Interest paid	(1,436)	(1,201)
Other	(38)	—
Balance at December 31,	15,400	15,118

The following table summarizes Vedanta's future principal payments for the long-term loan as of December 31, 2022:


Balance Type	2023	2024	2025	Total
Principal	5,156	5,625	4,219	15,000
Balance of accreted premium net of unamortized issuance costs				400
Total				15,400

The long-term loan is presented as follows in the Statement of Financial Position as of December 31, 2022 and 2021:


	Long-term loan
	2022 $000s	2021 $000s

Current portion of Long-term loan	5,156	857
Long-term loan	10,244	14,261
Total Long-term loan	15,400	15,118