Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Notes Payable

v3.19.1
Note 9 - Notes Payable
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Debt Disclosure [Text Block]
9
.
Notes Payable
 
Platinum-Montaur Life Sciences LLC
 
In
July 2012,
we entered into an agreement with Platinum-Montaur to provide us with a credit facility of up to
$50
million (the “Platinum Loan Agreement”). In
March 2017,
the Company repaid to PPCO an aggregate of approximately
$7.7
million in partial satisfaction of the Company’s liabilities, obligations and indebtedness under the Platinum Loan Agreement between the Company and Platinum-Montaur, which were transferred by Platinum-Montaur to PPCO. In
November 2018,
the Company issued
925,000
shares of common stock of Navidea to Dr. Goldberg, of which approximately
817,857
shares valued at
$3.2
million were applied as payment of the Platinum debt, including principal and accrued interest of
$2.2
million and loss on extinguishment of debt of
$1.0
million. See Note
11.
 
During the
three
-month period ended
March 31, 2018,
$42,000
of interest was compounded and added to the balance of the Platinum Note.
 
IPFS Corporation
 
In
November 2017,
we prepaid
$396,000
of insurance premiums through the issuance of a note payable to IPFS Corporation (“IPFS”) with an interest rate of
4.0%.
The note was payable in
ten
monthly installments of
$40,000,
with the final payment made in
August 2018.
In
November 2018,
we prepaid
$393,000
of insurance premiums through the issuance of a note payable to IPFS with an interest rate of
5.1%.
The note is payable in
ten
monthly installments of
$40,000,
with the final payment due in
August 2019.
 
Interest expense related to the IPFS notes payable totaled
$4,000
and
$2,000
during the
three
-month periods ended
March 31, 2019
and
2018,
respectively. The balance of the IPFS note was approximately
$199,000
and
$316,000
as of
March 31, 2019
and
December 31, 2018,
respectively, and was included in notes payable, current in the consolidated balance sheets.
 
Summary
 
During the
three
-month periods ended
March 
31,
2019
and
2018,
we recorded interest expense of
$4,000
and
$44,000,
respectively, related to our notes payable. Of these amounts,
$0
and
$42,000
was compounded and added to the balance of our notes payable during the
three
-month periods ended
March 
31,
2019
and
2018,
respectively.