Annual report [Section 13 and 15(d), not S-K Item 405]

Related Party Transactions

v3.25.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions  
Related Party Transactions

17. Related Party Transactions

On February 15, 2023, the Company refinanced a payable due to Mark Scatterday, a former director of the Company, through an affiliated entity, Mak One LLP (“Mak One”) as part of its 2023 Refinanced Notes. As of December 31, 2024, the balance of the payable was $26,327, which is included in notes payable in the consolidated balance sheet as of December 31, 2024. The payable bears interest at 25.0% as of December 31, 2024 and is due on February 15, 2026. The portion of the old note included in accounts payable and accrued liabilities was reclassified as part of the 2023 New Notes entered into on February 15, 2023 and is now included in notes payable with a balance of $6,463 on the consolidated

balance sheet as of December 31, 2024. This payable bears interest at 24.0% as of December 31, 2024 and is due on February 15, 2027. As of December 31, 2024, the Company had paid $2,604 and $0 in interest to Mak One on the 2023 Refinanced Notes and the 2023 New Notes, respectively.

The Company had another payable due to Mark Scatterday through Mak One related to the issuance of the 2019 Senior Notes. On February 15, 2023, the 2019 Senior Notes were repaid and retired, and this payable was settled.

See Note 11 — Notes Payable for additional information regarding the 2023 Refinanced Notes and 2023 New Notes, including calculation of the interest rates for each note as of December 31, 2024.

In connection with the 2023 Refinanced Notes, the Company issued 91,999,901 Debt Modification Warrants to the Note Holders. Of this amount, 45,539,951 Debt Modification Warrants were issued to Mark Scatterday through Mak One.

In connection with the 2023 Bridge Notes, the Company had additional payables due to Mark Scatterday through Mak One, an affiliated entity. During the three months ended September 30, 2023, the Company fully repaid the 2023 Bridge Notes. As part of this repayment, the Company paid $2,669 to Mak One.