Company: MYND
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001628280-25-014832
Chunk: 136

Company: Mynd.ai, Inc.
Filing Date: 2025-03-26
Form: 20-F
Item: Item 18
Chunk 136
---
 an amount equal to the applicable amount of PIK interest for the interest period. During 2024, the Company issued two additional Notes in the aggregate amount of $ 3,309 The Company capitalized $ 116

The Notes are senior secured obligations of the Issuer and mature on December 13, 2028, unless earlier redeemed, repurchased or converted. The initial conversion rate per $ 1 1 115 2.023 1.214 0.001

Certain features of the Convertible Note, including the conversion option, redemption at the holder's election upon occurrence of Fundamental Change events as specified in the Notes, and acceleration of amounts due under the Convertible Note upon an event of default require, bifurcation and separate accounting as a single embedded derivative (the “ Embedded Derivative”) from the Convertible Note pursuant to ASC 815. The Embedded Derivative is measured at fair value utilizing Level 3 inputs under the fair value measurement hierarchy on the date of issuance and at the end of each reporting period. As of December 31, 2024 and 2023, the Embedded Derivative is included in non-current loans payable in the consolidated balance sheets. The discount on the Note of $ 14,740

The Convertible Notecontains certain representations, warranties, events of default, and negative covenants that limit, without the consent of the holder(s) of the Convertible Note, the Company’s ability, among other things, to incur additional indebtedness, sell or acquire assets, undertake capital expenditures, and enter into certain transactions with third parties. As of December 31, 2024 and 2023, the Company believes it was in material compliance with all such covenants.

During the years ended December 31, 2024 and 2023, the Company recognized a gain on remeasurement of the Embedded Derivative of $ 11,389 432

The fair value of the Convertible Note and Embedded Derivative was calculated using a with and without method on the date of issuance (December 13, 2023) and at the end of each reporting period (December 31, 2024 and 2023) using a Monte Carlo simulation model with the following assumptions:

                                                                            December 31, 2024                  December 31, 2023                  December 13, 2023                  Relationship of significant unobservable input to fair value                     
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────