Anterix Inc. Debt Disclosure
9. Notes Payable
On October 23, 2015, the Company entered into a promissory note in the amount of $1,289,013 with a third party in exchange for wireless licenses. The term of the note is through March 15, 2018 and bears a fixed rate of interest, of 0.55% per annum, which is based on the Short-Term Applicable Federal Rate on the closing date. For the year ended March 31, 2016, the Company had repaid $297,203 in principal. The outstanding borrowings of the promissory note was $991,810 as of March 31, 2016.
During the fiscal year ended March 31, 2015, the Company had:
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a $3,000,000 working capital line of credit with a related party which earned interest at 10% per annum. In September 2014, the Company repaid the outstanding note balance of $1,470,000; |
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a promissory note to a related party in the amount of $540,000 that earned interest at 10% per annum. In September 2014, the Company repaid $540,000 which was the outstanding amount of the note; |
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outstanding Series AA convertible promissory notes issued to certain employees. The notes earned interest of 10% per annum. In September 2014, the Company repaid $423,852 representing the outstanding amount of these notes together with $283,856 in accrued interest; and |
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issued redeemable convertible promissory notes (the “Redeemable Notes”) with contingently issuable detachable warrants in the amount of $475,491 during the fiscal year ended March 31, 2014. The notes earned interest at 10% per annum. In the June 2014 Private Placement (see Note 1), the Redeemable Notes were amended to provide that the Redeemable Notes would automatically be converted into that number of shares of common stock equal to the sum of 140% of the outstanding principal on the Redeemable Notes plus outstanding interest divided by $20.00 per share upon the closing of the Sprint APA. The company accreted approximately $400,000 representing the 40% premium to the principal balance from the amendment date through the closing of the Sprint APA; |
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In September 2014, converted the $1,016,956 outstanding principal and $238,856 interest on the Redeemable Notes into 77,733 shares of common stock. |
For the fiscal years 2016, 2015 and 2014, total interest expense on all notes payable was $3,024, $570,737 and $325,348, respectively. For the years ended March 31, 2015 and 2014, $477,325 and $308,675 were derived from related parties.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.