General form of registration statement for all companies including face-amount certificate companies

LONG-TERM DEBT

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LONG-TERM DEBT
6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Entity Listings [Line Items]    
LONG-TERM DEBT  

 

11. LONG-TERM DEBT

 

Long-term debt consists of:

 

               
    December 31,  
    2020     2019  
PPP Loan   $ 2,087     $  
Finnish Funding Agency for Technology and Innovation (“Tekes”)     458       410  
      2,545       410  
Less current portion – product development loan     (298 )     (272 )
Less accrued interest on product development loan – current     (160 )     (138 )
Total long-term debt   $ 2,087     $  

 

On April 27, 2020, under the Paycheck Protection Program (“PPP”) established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, administered by the Small Business Administration (“SBA”), the Company entered into a promissory note of approximately $2.1 million with First Home Bank (“PPP Loan”). The promissory note bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 18 months beginning seven months from the date of this promissory note and continuing on the 5th day of each month thereafter. A final payment of the entire unpaid balance of principal and interest will be due on April 27, 2022, the maturity date. On March 8, 2021, the Company applied for the promissory note to be forgiven by the SBA in whole or in part. Any remaining balance following forgiveness by the SBA will be fully amortized over the remaining term of the promissory note. The purpose of this promissory note is to retain workers, maintain payroll and for the use of other eligible expenditures pursuant to the terms of the CARES Act.

 

At both December 31, 2020 and 2019, there were two capital loans amounting to $0.3 million with Tekes, the main public funding organization for research and development in Finland.

 

The table below sets forth the contractual maturities of the Company’s debt for each of the five years subsequent to December 31, 2020 and thereafter (in thousands):

 

                                       
   Senior     Subordinated     Subordinated     Long-Term        
   Term Loan     Debt     Term Loan     Debt     Total  
2021   $     $ 10,065     $     $ 298     $ 10,363  
2022                       2,087       2,087  
2023                              
2024     44,025                         44,025  
2025                 34,756             34,756  
Thereafter                              
Total   $ 44,025     $ 10,065     $ 34,756     $ 2,385     $ 91,231  
Unamortized debt issuance costs     (5,794 )                       (5,794 )
Unamortized purchase discount     (1,397 )                       (1,397 )
Total Debt   $ 36,834     $ 10,065     $ 34,756     $ 2,385     $ 84,040  

 

The contractual payments set forth in the table above may differ from actual payments due to the timing of principal payments required upon the planned Special Purpose Acquisition Corporation (“SPAC”) transaction in the third quarter of 2021 (see Note 22).

 

 

Airspan [Member]    
Entity Listings [Line Items]    
LONG-TERM DEBT

 

9. LONG-TERM DEBT

 

Long-term debt consists of:

 

               
    June 30,
2021
    December 31,
2020
 
PPP Loan   $ -     $ 2,087  
Finnish Funding Agency for Technology and Innovation (“Tekes”)     443       458  
      443       2,545  
Less current portion – product development loan     (288 )     (298 )
Less accrued interest on product development loan – current     (155 )     (160 )
Total long-term debt   $ -     $ 2,087  

 

On April 27, 2020, under the Paycheck Protection Program (“PPP”) established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, administered by the Small Business Administration (“SBA”), the Company entered into a promissory note of approximately $2.1 million with First Home Bank (“PPP Loan”). The promissory note bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 18 months beginning seven months from the date of this promissory note and continuing on the 5th day of each month thereafter. A final payment of the entire unpaid balance of principal and interest will be due on April 27, 2022, the maturity date. On March 8, 2021, the Company applied for the promissory note to be forgiven by the SBA in whole or in part and was notified on June 10, 2021 that the SBA has approved our application to forgive the entire loan and accrued interest. For the three and six months ended June 30, 2021, the Company recorded a gain on extinguishment of debt for the PPP Loan of $2.1 million and the accrued interest of $23 thousand, respectively for the PPP Loan.

 

At both June 30, 2021 and December 31, 2020, there were two capital loans amounting to $0.3 million with Tekes, the main public funding organization for research and development in Finland.