Company: SRFM
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0000950170-25-043326
Chunk: 172

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1B
Chunk 172
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 annum. Additionally, the Company pays certain ancillary fees associated with each borrowing that vary depending on the borrowed amount and duration, which is generally no more than 45 days.For the year ended December 31, 2024, the Company borrowed a total of $50.3 million under this financing facility, of which $47.5 million was settled through the transfer of pledged receivables. Interest expense incurred on these borrowings for the year ended December 31, 2024, amounted to $471 thousand, and are included in interest expense in the accompanying Consolidated Statements of Operations.As of December 31, 2024 the outstanding amount due under this facility amounted to $2.8 million. As of December 31, 2024 the Company was in compliance with all covenants under this financing facility.In addition, during the year ended December 31, 2024, the Company received an advance payment of $3.0 million from a financing institution related to an expected future payment under the IRS’ Employee Retention Credit Program, As of December 31, 2024,  the Company has recorded $3.0 million within Collateralized borrowings. Such amounts are collateralized against the value of the credits to be received, as well as other assets of Southern Airways Express, a subsidiary of Southern. Accrued Professional ServicesDuring the fourth quarter of 2024, the Company entered into agreements with several professional service firms engaged in support of the Company’s July 27, 2023 direct listing on the NYSE. These agreements modify the payment terms of prior service agreements to be contingent on future equity or debt financing by the Company. The Company estimates that a total of $7.1 million will be due under these agreements over the next five years. Given the uncertainty regarding the timing and amount of payment, all amounts have been classified as current liabilities with the Company’s consolidated balance sheet.

93

Note 11. Financing ArrangementsThe Company’s long-term debt obligations consist of the following (in thousands): 

        December 31,2024

        December 31,2023

        Note payable to a financing company, fixed interest rate of 7.60%, due November 2024
         
        $
        —

        $
        257

        Note payable to bank, fixed interest rate of 4.65%, due November 2025

        8

        15

        Note payable to a financing company, fixed interest rate of 5.