A vote of confidence

May 28, 2024

Heading into this year, we were focused at the corporate level on doing everything we could to maximize our runway as we push towards profitability and also ensure we had a solution for our venture debt with Nomura that was slated to come due in June. In many ways, these objectives were intertwined as any venture debt provider would want to see material progress towards becoming cash flow breakeven and anything to bolster our cash balance would be viewed as a net positive.

With the $[ ]M convertible note firmly behind us to pad our balance sheet and the stellar performance to start the year on all fronts (revenue, expense, and EBITDA), Nomura was keen to figure out a way to continue working with us. Still, this is a firm that leans towards being much more conservative and in all fairness, very few if any venture debt lenders would ever consider doing anything longer than 18 months where we pay interest only. Bearing all this in mind, I'm pleased to share that they've extended us another [ ] months of interest only for our venture debt, the maximum they would ever consider doing, before we begin to amortize down. This is as strong a vote of confidence as we could receive from them, a testament to all we've been able to accomplish this year and a recognition of just how far we've come in 2+ quarters.

We're two for two on key corporate strategic objectives thanks to our performance this year. By the time our venture debt is slated to come due again in December this year I know we're going to be in an even better position of strength to negotiate, whether it's because of our partnerships, our growth, our AUM, our profitability, or some combination of all of the above. 

With everything we're on track to achieve in the next two quarters, we'll have no shortage of options to either extend again with Nomura or explore other lenders who would want to be a part of our story 🏞️.