NOTES PAYABLE
Notes payable were $3.0 million and $0.2 million as of December 31, 2024 and December 31, 2023, respectively.
The current portion was $0.1 million and $0.2 million at December 31, 2024 and 2023, respectively, as a result of insurance financing arrangements. The notes are fully amortizing and payments are made monthly, according to the terms of the agreements which have a weighted average effective interest rate of 11.0% and 10.8% at December 31, 2024 and 2023, respectively. Subsequent to the year ended December 31, 2024, the note reached maturity and was paid in full on February 1, 2025.
The long-term portion of notes payable relates to three unsecured notes, described below. The long-term portion of notes payable was $2.9 million as of December 31, 2024. There were no unsecured notes at December 31, 2023.
On April 23, 2024, the Company issued an unsecured note payable to Jade Capital in the amount of $2.5 million. The note bears interest at 16% per annum and requires quarterly interest payments beginning June 30, 2024. The note is due in full on September 30, 2026. The Company has the right to prepay all or a portion of the Promissory Note at any time without premium or penalty. Tyler Rameson is an independent member of Mannatech's Board of Directors, and is the managing member of Jade Capital. As of December 31, 2024, there was no current portion and the long-term portion of the balance was $2.0 million.
On April 23, 2024, the Company issued an unsecured note payable to J. Stanley Fredrick in the amount of $1.0 million. The note bears interest at 16% per annum and requires quarterly interest payments beginning June 30, 2024. The note is due in full on September 30, 2026. The Company has the right to prepay all or a portion of the Promissory Note at any time without premium or penalty. Mr. Fredrick is the Chairman of Mannatech's Board of Directors. As of December 31, 2024, there was no current portion and the long-term portion of the balance was $0.8 million.
On April 23, 2024, the Company issued an unsecured note payable to Kevin Robbins in the amount of $0.1 million. The note bears interest at 16% per annum and requires quarterly interest payments beginning June 30, 2024. The note is due in full on September 30, 2026. The Company has the right to prepay all or a portion of the Promissory Note at any time without premium or penalty. Mr. Robbins is a member of Mannatech's Board of Directors. As of December 31, 2024, there was no current portion and the long-term portion of the balance was $0.1 million.
As of December 31, 2024, the Company's future principal payments on notes payable were as follows (in thousands):
| | | | | | | | | | | | | | | |
| Principal Payments | | 2025 | 2026 | Thereafter | Total |
| Insurance Financing Notes | | $ | 84 | | $ | — | | $ | — | | $ | 84 | |
| Jade Capital Note | | — | | 2,014 | | — | | 2,014 | |
| J.S. Fredrick Note | | — | | 806 | | — | | 806 | |
| K. Robbins Note | | — | | 80 | | — | | 80 | |
| Total | | $ | 84 | | $ | 2,900 | | $ | — | | $ | 2,984 | |
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