DEBT |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| DEBT | NOTE 8: DEBT Debt consists of the following as of June 30, 2026 and December 31, 2025:
The Company recorded the interest expenses (including amortization of debt discount) of approximately $844,000 and $1,348,000 for the three and six months ended June 30, 2026, respectively and $86,000 and $573,000 for three and six months ended June 30, 2025, respectively. The accrued interest as of June 30, 2026, and December 31, 2025 were approximately $858,000 and $392,000 respectively. Promissory Notes In January and February 2026, Global Impx LLC, a subsidiary of the Company, entered into two promissory notes with third-party lenders with an aggregate principal amount of $730,000. The notes bear interest at a rate of 14.0% per annum, calculated on the basis of a 360-day year, and mature on January 31, 2029, at which time all outstanding principal and accrued interest are due and payable. The notes may be prepaid, subject to a prepayment premium equal to 5.5% of the original principal amount, less accrued interest, if prepaid within 90 days of issuance (See note 4). On April 3, 2026, in connection with the Company’s divestiture of its India operations, the entire outstanding principal balance of the notes was settled through the issuance of 12,500,000 shares of GIX common stock. As a result, Astrabridge acquired 5.88% equity shares of GIX. The note was fully satisfied and discharged upon the separately negotiated issuance of equity-classified common stock. The fair value of the notes upon settlement was $2,207,000. As a result of the settlement, the Company recognized impact of 1,477,000, in net income from discontinued operations, in the Company’s consolidated statements of operations and comprehensive loss. Business Loan and Security Agreement: On January 25, 2026, the Company entered into a term loan agreement (the “January 2026 Term Loan”) whereby the Company borrowed a principal amount of $80,000 at a fixed annual interest rate of 16.50%. The Company was required to make 24 equal monthly installment payments of approximately $4,000 throughout the term of the loan, resulting in aggregate principal and interest payments of approximately $96,000. Accordingly, the term was determined to be two years. On March 9, 2026, the Company entered into a term loan agreement (the “March 2026 Term Loan”) whereby the Company borrowed a principal amount of $90,000 at a fixed annual interest rate of 21.50%. The Company was required to make 18 equal monthly installment payments of approximately $6,000 throughout the term of the loan, resulting in aggregate principal and interest payments of approximately $106,000. Accordingly, the term was determined to be . Line of Credit The Company maintains two lines of credit with financial institution to support its working capital requirements. As of June 30, 2026, the outstanding balance under the line of credit was $372,206. Sale of future receipts During the six months ended June 30, 2026, the Company entered into seven sale-of-future-receipts agreements and extinguished one in which it sold and assigned an aggregate of approximately $2,880,000 of future receipts in exchange for aggregate net cash proceeds of approximately $1,709,000, resulting in aggregate discounts of approximately $1,172,000 recorded as debt discount and amortized to interest expense over the related contractual terms. The agreements require weekly remittances and have remaining terms ranging from approximately six months to one year. The gross value of sale of future receipt of obligation was $1,919,000 and $518,000 as of June 30, 2026 and December 31, 2025, respectively. Purchase Order Financing Facility On September 18, 2025, County Comfort Services, LLC (“CCS”), a wholly owned subsidiary, entered into a Factoring & Security Agreement to provide purchase-order and accounts-receivable financing of up to $4,000,000. Under the facility, the lender may advance up to 85% of eligible receivables (generally up to 60 days from invoice date) or, for approved purchase orders, up to the cost of product plus shipping prior to invoicing. The facility is secured by a first-priority lien on substantially all of CCS’s accounts receivable and a blanket security interest in other assets and is guaranteed by the Company. Interest/fees and repayment terms - For accounts receivable financing, charges accrue at 1.55% for the first 30 days after advance, plus 0.55% for each additional period thereafter; invoices outstanding more than 60 days incur an additional 1.00% per period (minimum $25 per invoice). For purchase order (“PO”) financing, charges accrue at 1.625% per period from the date funds are advanced to the vendor until the related invoice is verified and funded. The agreement includes a term, minimum annual volume equal to 100% of the facility amount, and standard reporting covenants. On March 9, 2026, the Company entered into an addendum to the facility extending PO financing to Keen Labs Operations, Inc., an affiliated entity. During the three and six months ended June 30, 2026, the Company utilized the facility to finance two purchase orders totaling approximately $1,943,000 for HVAC equipment purchases from Keen Labs Operations, Inc. Borrowings against these purchase orders totaled approximately $307,000 and remained outstanding as of June 30, 2026. For additional activity under the facility subsequent to June 30, 2026, see Note 16 – Subsequent Events. |
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