AIM ImmunoTech Inc. Debt Disclosure

(6) Unsecured Promissory Note

 

On February 16, 2024, the Company (“Borrower”) entered into a Note Purchase Agreement with Streeterville Capital LLC (“Streeterville” or the “Lender”). Under the terms of the agreement, Streeterville paid the Company $2,500,000 in exchange for an unsecured promissory Note with an Original Issue Discount of $781,250. The Company will pay $3,301,250 consisting of the principal amount of the Note, together with the original issue discount and $20,000 of lender transaction fees, no later than February 16, 2026. The stated interest rate of the note is 10%. There was no debt at December 31, 2023.

 

Schedule of Long Term Debt

Debt schedule at December 31, 2024 (in thousands)
Long-term debt		$	2,807
Unamortized Original issue discount			(489	)
Unamortized Financing fees			(11	)
Unamortized discount and debt issuance costs			2,307
Less current portion of long-term debt, net			(2,307	)
Long-term debt, net		$	—

 

 

Future maturities for long-term debt as of December 31, 2024 were as follows:

(in thousands)

Schedule of Maturities of Long-Term Debt

Fiscal years ending December 31:
2025		$	2,807
Total		$	2,807

 

Interest expense related to long-term debt was $292,000 at December 31, 2024. Amortization expenses related to long-term debt was $302,000 at December 31, 2024. This consisted of $293,000 in original issue discount and $9,000 for loan fee amortization. Future maturities of long-term debt at December 31, 2024 were $2,807,000 for fiscal years ending December 31, 2025.

 

Current portion of long-term debt of approximately $2,807,000 is net of the current portion of debt discount of approximately $489,000 and the current portion of debt origination costs of approximately $11,000 as of December 31, 2024.

 

The agreement allows the Lender to redeem up to $250,000 per calendar month beginning in August 2024, upon providing written notice to Borrower. The Note further contains triggering events which can be remedied by the Lender requiring the Borrower to correct the triggering event, increasing the outstanding balance by applying the triggering effect, or making the Note immediately due and payable.