Company: SRFM
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0000950170-25-043326
Chunk: 176

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1B
Chunk 176
---
 applied to repay the obligations under the Convertible Note Purchase Agreement. The maturity of the Convertible Note Purchase Agreement is December 31, 2028, which may be accelerated upon the occurrence of certain events of default.PFG has the right to convert, at its option, the amounts outstanding under the Convertible Note Purchase Agreement into common stock of Company, at a conversion price of $42.00 per share.The obligations under the Convertible Note Purchase Agreement are guaranteed by certain of the Company’s subsidiaries, and subject to a security interest on assets of the Company and the subsidiary guarantors, subject to certain exceptions.As of December 31, 2024, the Company was in compliance with all covenants under the Convertible Note Purchase Agreement.Fair value of convertible notes (in thousands): 

        Fair Value at

        December 31, 2024

        December 31, 2023

        Convertible Note Purchase Agreement

        7,347

        7,715

        Total
         
        $
        7,347

        $
        7,715

95

Fair Value of SAFE NotesThe Company’s SAFE and SAFE-T notes are carried at fair value, with fair value determined using Level 3 inputs. The Company determined that the SAFE and SAFE-T instruments should be classified as liabilities based on evaluating the characteristics of the instruments, which contained both debt and equity-like features. The SAFE notes mature between May 2024 and June 2025. The SAFE-T instrument matured in July 2019, but the holder has elected not to effect an equity conversion of the instrument. Subsequent changes in the fair value of the SAFE and SAFE-T notes are recorded as part of changes in fair value of financial instruments carried at fair value, net within the Consolidated Statements of Operations. Each of the SAFE notes previously converted into shares of the Company’s common stock, concurrent with the Company's listing on the NYSE (see Note 12, Fair Value Measurements).Fair value of SAFE and SAFE-T notes (in thousands): 

        Fair Value at

        December 31, 2024

        December 31, 2023

        SAFE-T

        13

        25

        Total
         
        $
        13

        $
        25

        Less: SAFE notes at fair value, current

        (13
        )

        (25
        )

        SAFE notes at fair value, long term
         
        $
        —