TENAX THERAPEUTICS, INC. Debt Disclosure
NOTE 4—NOTE PAYABLE
On December 31, 2023, the Company executed a premium finance note agreement (the “Note”) with a third party to finance the Company’s Directors and Officers Insurance Policy as well as the Errors and Omissions policy. The total amount financed was $549 thousand. The Company paid a down payment of $48 thousand at execution leaving a balance of $501 thousand payable in monthly installments of $48 thousand through December 1, 2024. The Note had an interest rate of 9.95%. During the quarter ended September 30, 2024, the Company repaid the entire outstanding balance of the Note. The Company recorded interest expense on the Note in the amount of $23 thousand during the year ended December 31, 2024. The balance on the Note as of December 31, 2024 and December 31, 2023, was zero and $501 thousand, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 25, 2025 | Showing above |
| 2020 | Mar 31, 2021 | |
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.