Notes payable consist of the following (in thousands): | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Related parties: | | | | 1Shareholders and Owners of Acquired Entities - Interest accrues annually at rates ranging from 3.25% - 11.00% annually. The notes payable mature on various dates through July 2028. | 36,320 | | | 47,299 | | Convertible Notes Payable - Interest accrues annually at rates ranging from 4.75% - 7.00% annually. The convertible notes payable mature on various dates through November 2028. | 4,713 | | | 5,312 | | | Unrelated third parties: | | | | | | | | | Note payable for purchase of tangible asset | 3,815 | | | 4,366 | | | Note payable for purchase of intangible asset | 264 | | | 619 | | | | | | | Discounts on notes payable issued as consideration in acquisitions: | | | | 1Shareholders and owners of acquired entities | (492) | | | (729) | | | | | | | Other | 110 | | | 144 | | | Total | 44,730 | | | 57,011 | | | Less: current portion | (22,039) | | | (22,698) | | | Non-current portion | $ | 22,691 | | | $ | 34,313 | |
1Includes notes payable to all owners irrespective of current relationship with the Company The following table summarizes the convertible notes as of June 30, 2026 (in thousands, except conversion price): | | | | | | | | | | | | | | | | | | | Convertible Notes: | Date Issued | Principal Amount | Interest Rate | Conversion Price | Remaining Balance1 | | Anchor Consultants, LLC | 08/22 | $ | 1,100 | | 5.50 | % | $ | 18.00 | | $ | 350 | | | Exeltech Consulting, Inc. | 11/24 | $ | 2,200 | | 5.00 | % | $ | 32.32 | | $ | 1,433 | | | UP Engineering, LLC | 02/25 | $ | 1,200 | | 5.00 | % | $ | 32.50 | | $ | 1,090 | | | e3i Engineers, INC | 07/25 | $ | 1,800 | | 5.00 | % | $ | 32.50 | | $ | 1,970 | |
1Includes discounts, and reflects the net remaining balance on convertible notes.
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