Related party
Others
Total
Balance as of December 31, 2019
Gross proceeds
$10,000
$97,000
$107,000
Unamortized debt discounts and deferred financing offering costs
(1,136)
(12,352)
(13,488)
Net carrying amount
$8,864
$84,648
$93,512
Balance as of December 31, 2018
Gross proceeds
$10,000
$97,000
$107,000
Unamortized debt discounts and deferred financing offering costs
(1,622)
(17,567)
(19,189)
Net carrying amount
$8,378
$79,433
$87,811
note 12 .
convertible notes .
in december 2016 the company entered into the purchase agreement with j .
p .
morgan securities llc and jefferies llc as representatives of the several initial purchasers named therein -collectively the “ initial purchasers ” to issue and sell $ 90000 in aggregate principal amount of its 5 .
50 % senior convertible notes due 2021 - " convertible notes " in a private placement to qualified institutional buyers pursuant to rule 144a under the securities act of 1933 as amended -the “ securities act ” and to non-u .
s .
persons pursuant to regulation s under the securities act .
in december 2016 the company entered into a purchase agreement -the “ cambridge purchase agreement ” with cambridge equities l .
p .
- “ cambridge ” an entity affiliated with dr .
patrick soon-shiong the company ’ s chairman and chief executive officer to issue and sell $ 10000 in aggregate principal amount of the convertible notes in a private placement pursuant to an exemption from the registration requirements of the securities act afforded by section 4-a-2 of the securities act .
in december 2016 pursuant to the exercise of the overallotment by the initial purchasers the company issued an additional $ 7000 principal amount of the convertible notes .
the total net proceeds from this offering were approximately $ 102714 - $ 9917 from cambridge and $ 92797 from the initial purchasers after deducting the initial purchasers ’ discount and debt issuance costs of $ 4286 in connection with the convertible notes offering .
on december 21 2016 the company entered into an indenture relating to the issuance of the convertible notes -the “ indenture ” by and between the company and u .
s .
bank national association as trustee -the “ trustee ” .
the interest rates are fixed at 5 .
50 % per year payable semi- annually on june 15 and december 15 of each year beginning on june 15 2017 .
the convertible notes will mature on december 15 2021 unless earlier repurchased by the company or converted pursuant to their terms .
in connection with the offering of the convertible notes on december 15 2016 the company entered into a second amended and restated promissory note which amended and restated the amended and restated promissory note dated may 9 2016 between the company and nantcapital to among other things extend the maturity date of the promissory note to june 15 2022 and to subordinate such promissory note in right of payment to the convertible notes -see note 20 .
the initial conversion rate of the convertible notes is 82 .
3893 shares of common stock per $ 1 principal amount of convertible notes -which is equivalent to an initial conversion price of approximately $ 12 .
14 per share .
prior to the close of business on the business day immediately preceding september 15 2021 the convertible notes will be convertible only under the following circumstances : -1 during any calendar quarter commencing after march 31 2017 -and only during such calendar quarter if for at least 20 trading days -whether or not consecutive during the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter the last reported sale price of the company ’ s common stock on such trading day is greater than or equal to 120 % of the conversion price on such trading day ; -2 during the five business day period after any five consecutive trading day period in which for each day of that period the trading price per $ 1 principal amount of the convertible notes for such trading day was less than 98 % of the product of the last reported sale price of the company ’ s common stock and the conversion rate on such trading day ; or -3 upon the occurrence of specified corporate transactions as described in the indenture agreement .
upon conversion the convertible notes will be settled in cash shares of the company ’ s common stock or any combination thereof at the company ’ s option .
upon the occurrence of a fundamental change -as defined in the indenture holders may require the company to purchase all or a portion of the convertible notes in principal amounts of $ 1 or an integral multiple thereof for cash at a price equal to 100 % of the principal amount of the convertible notes to be purchased plus any accrued and unpaid interest to but excluding the fundamental change purchase date .
the conversion rate will be subject to adjustment upon the occurrence of certain specified events .
on or after the date that is one year after the last date of original issuance of the convertible notes if the last reported sale price of the company ’ s common stock for at least 20 trading days -whether or not consecutive during the period of 30 consecutive trading days ending within the five trading days immediately preceding a conversion date is greater than or equal to 120 % of the conversion price on each applicable trading day the company will make an interest make-whole payment to a converting holder -other than a conversion in connection with a make-whole fundamental change in which the conversion rate is adjusted equal to the sum of the present values of the scheduled payments of interest that would have been made on the convertible notes to be converted had such convertible notes remained outstanding from the conversion date through the earlier of -i the date that is three years after the conversion date and -ii the maturity date if the convertible notes had not been so converted .
the present values of the remaining interest payments will be computed using a discount rate equal to 2 .
0 % .
the company may pay any interest make-whole payment either in cash or in shares of its common stock at the company ’ s election as described in the indenture .
on or after the date that is one year after the last date of original issuance of the convertible notes if the last reported sale price of the company ’ s common stock for at least 20 trading days -whether or not consecutive during the period of 30 consecutive trading days ending within the five trading days immediately preceding a conversion date is greater than or equal to 120 % of the conversion price on each applicable trading day the company will make an interest make-whole payment to a converting holder -other than a conversion in connection with a make-whole fundamental change in which the conversion rate is adjusted equal to the sum of the present values of the scheduled payments of interest that would have been made on the convertible notes to be converted had such convertible notes remained outstanding from the conversion date through the earlier of -i the date that is three years after the conversion date and -ii the maturity date if the convertible notes had not been so converted .
the present values of the remaining interest payments will be computed using a discount rate equal to 2 .
0 % .
the company may pay any interest make-whole payment either in cash or in shares of its common stock at the company ’ s election as described in the indenture .
the company accounts for convertible debt instruments that may be settled in cash upon conversion -including partial cash settlement by recording the liability and equity components of the convertible debt separately .
the liability component is computed based on the fair value of a similar liability that does not include the conversion option .
the liability component includes both the value of the embedded interest make-whole derivative and the carrying value of the convertible notes .
the equity component is computed based on the total debt proceeds less the fair value of the liability component .
the equity component is also recorded as debt discount and amortized as interest expense over the expected term of the convertible notes .
the liability component of the convertible notes on the date of issuance was computed as $ 83079 consisting of the value of the embedded interest make-whole derivative of $ 1499 and the carrying value of the convertible notes of $ 81580 .
accordingly the equity component on the date of issuance was $ 23921 .
if the debt is considered current at the balance sheet date the liability component of the convertible notes will be classified as current liabilities and presented in current portion of convertible notes debt and the equity component of the convertible debt will be considered a redeemable security and presented as redeemable equity on the company ' s consolidated balance sheet .
offering costs of $ 4286 related to the issuance of the convertible notes were allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as deferred financing offering costs and equity issuance costs respectively .
approximately $ 972 of this amount was allocated to equity and the remaining $ 3314 was capitalized as deferred financing offering costs .
the debt discounts and deferred financing offering costs on the convertible notes are being amortized to interest expense over the contractual terms of the convertible notes using the effective interest method at an effective interest rate of 12 .
82 % .
as of december 31 2019 the remaining life of the convertible notes is approximately 24 months .
the following table summarizes how the issuance of the convertible notes is reflected in the company ' s consolidated balance sheets as of december 31 2019 and 2018 : .
-dollars in thousands except per share amounts .

Question: What is the percentage change in the company's net carrying amount of related party transaction between 2018 and 2019?
Answer: 5.8