SenesTech, Inc. Debt Disclosure
| 8. | Borrowings |
A summary of the Company’s borrowings, including finance lease obligations, is as follows:
| At December 31, | ||||||||
| 2020 | 2019 | |||||||
| Short-term debt: | ||||||||
| Current portion of long-term debt | 98 | 123 | ||||||
| Total short-term debt | $ | 98 | $ | 123 | ||||
| Long-term debt: | ||||||||
| Finance lease obligations | $ | 79 | $ | 155 | ||||
| Other unsecured promissory notes | 692 | 105 | ||||||
| Total | 771 | 260 | ||||||
| Less: current portion of long-term debt | 98 | 123 | ||||||
| Total long-term debt | $ | 673 | $ | 137 | ||||
Finance Lease Obligations
Finance lease obligations at December 31, 2020 are for computer and lab equipment leased through GreatAmerica Financial Services and ENGS Commercial Finance Co. These finance leases expire at various dates through April 2022 and carry interest rates ranging from 11.4% to 18.3%.
Other Promissory Notes
Also included in the table above are notes payable to Direct Capital, M2 Financing and Fidelity Capital, all for the financing of fixed assets. These notes expire at various dates through June 2022 and carry interest rates ranging from 13.1% to 13.3%.
Also included in the table above is a loan agreement payable to BMO Harris Bank National Association as the lender in an aggregate principal amount of $645,700 pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The loan is evidenced by a promissory note dated April 15, 2020 and matures April 15, 2022. The loan bears interest at a rate of 1.00% per annum and contains customary events of default including, among other things, payment defaults. The loan closed and was funded April 20, 2020. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The loan is subject to forgiveness to the extent proceeds are used for qualifying expenses, including certain payroll, utility, rent and mortgage interest expenses. No assurance is provided that the Company will obtain forgiveness of the loan in whole or in part.
Pursuant to amendments to the CARES Act, as long as the Company submits its application for loan forgiveness within ten months after the expiration of the applicable covered period, the Company will not be required to make any payments until the forgiveness amount is remitted to the lender by the SBA. In the event the PPP loan is not forgiven in whole or in part, the lender is responsible for notifying the Company of the date on which the Company’s first repayment is due.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2020 | Mar 29, 2021 | Showing above |
| 2019 | Mar 17, 2020 | |
| 2018 | Mar 29, 2019 | |
| 2017 | Mar 30, 2018 | |
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.