Company: TEM
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025603
Chunk: 573

Company: Tempus AI, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 573
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 31, 2025 and thereafter, the Company is required to generate consolidated revenues of $594.1 million. The Company was in compliance with all covenants of the Credit Agreement as of December 31, 2024. All obligations under the Term Loan Facility are guaranteed by the Company and secured by substantially all of the assets of the Company. The original issue discount of $6.5 million and deferred financing fees of $2.6 million are amortized over the term of the underlying debt and unamortized amounts have been offset against long-term debt in the consolidated balance sheets. As of December 31, 2024 and 2023, the unamortized original issue discount was $3.8 million and $5.1 million, respectively, and the unamortized deferred financing fees were $1.4 million and $1.9 million, respectively. Through December 31, 2024, the Company has not made any principal repayments on the Term Loan Facility. The Company recognized interest expense of $36.6 million, $28.9 million and $5.1 million related to the Term Loan Facility, which represented an effective interest rate of 13.6%, 13.2% and 2.9% during the years ended December 31, 2024, 2023 and 2022, respectively.

168

Convertible Promissory Note On June 22, 2020, in connection with entry into an agreement for use of Google LLC’s, or Google’s, Google Cloud Platform, the Company issued Google a convertible promissory note, or the Note, in the original principal amount of $330.0 million. On November 19, 2020, in connection with Series G-2 convertible preferred stock financing, the Company issued Google $80 million of Series G-2 preferred stock, at a 10% discount to the purchase price per share in such financing, in partial satisfaction of the outstanding principal amount under the Note, and the Company amended and restated the terms of the Note. The amended and restated Note, or the Amended Note, has a principal amount of $250.0 million, and bears interest at the rate set forth therein. The principal amount is automatically reduced each year based on a formula taking into account the aggregate value of the Google Cloud Platform services used by the Company. The Company accounts for the principal reductions as an offset to its cloud and compute spend within selling, general and administrative in its consolidated statements