Annual report pursuant to Section 13 and 15(d)

LONG-TERM DEBT

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LONG-TERM DEBT
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
LONG-TERM DEBT

 

13. LONG-TERM DEBT

 

As of December 31, 2021 and 2020, long-term debt consists of (in thousands):

 

               
    December 31,  
    2021     2020  
PPP Loan   $     $ 2,087  
Finnish Funding Agency for Technology and Innovation (“Tekes”)     431       458  
      431       2,545  
Less current portion – product development loans     (275 )     (298 )
Less accrued interest on product development loans – current     (156 )     (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”), Legacy Airspan entered into a promissory note of approximately $2.1 million with First Home Bank (“PPP Loan”). The promissory note bore interest at a rate of 1% and was 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 was to be due on April 27, 2022, the maturity date. However, on March 8, 2021, Legacy Airspan 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 had approved Legacy Airspan’s application to forgive the entire loan and accrued interest. For the year ended December 31, 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.

 

At both December 31, 2021 and 2020, there were two capital product development 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, 2021 and thereafter (in thousands):

 

                                               
  Senior     Subordinated     Subordinated     Long-Term     Convertible        
  Term Loan     Debt     Term Loan     Debt     Debt     Total  
2022   $ 4,840     $ 10,577     $     $ 275     $     $ 15,692  
2023     5,280                               5,280  
2024     36,351                         41,343       77,694  
2025                 37,991                   37,991  
2026                                    
Thereafter                                    
    $ 46,471     $ 10,577     $ 37,991     $ 275     $ 41,343     $ 136,657  
Unamortized debt issuance costs     (1,898 )                             (1,898 )
Unamortized purchase discount     (3,510 )                             (3,510 )
Total Debt   $ 41,063     $ 10,577     $ 37,991     $ 275     $ 41,343     $ 131,249