14. Subsequent Events

On January 31, 2023, we leased 54,824 square feet of new office space in Dhaka under a lease agreement that expires in April 2028. This new office space will eventually replace our other office space in Dhaka and be used to expand our Bangladesh operations.

On February 18, 2023, the Board of Directors approved the issuance of 1,038,846 options and SARs for a subset of employees and executives of the Company at a $1.79 exercise price.

On February 28, 2023, the Board of Directors approved the issuance of 370,000 options for our new Executive Chairman, Rod O’Reilly at a $1.62 exercise price.

On March 10, 2023, the Federal Deposit Insurance Corporation (the “FDIC”) took control of Silicon Valley Bank (“SVB”) and created the National Bank of Santa Clara to hold the deposits of SVB after SVB was unable to continue its operations. On March 12, 2023, the FDIC, U.S. Department of the Treasury, and Board of Governors of the Federal Reserve System issued a joint press release stating that all depositors would have access to all of their deposits and uninsured deposits beginning on March 13, 2023. By no later than March 16th, 2023, we had access to all our cash on deposit with SVB.

On March 23, 2023, SVB reviewed financial information provided by the company and concluded that Augmedix satisfied the $35 million annual recurring revenue (“ARR”) performance metric within the Loan Agreement. This extended the interest only period on the term loan by six months from July 1, 2023 to January 1, 2024. Augmedix also accessed the second term loan tranche of $5 million, bringing the total term loan outstanding to $20 million. This term loan is repayable over twenty-four months in equal installments staring January 1, 2024 and ending December 1, 2025. With the final payment on December 1, 2025, the Company will also owe a final payment fee of 5.0% of the term loan, or $1 million.

On March 27, 2023, First-Citizens Bank & Trust Company, a subsidiary of Raleigh, North Carolina-headquartered First Citizens BancShares, Inc. (“First Citizens”) announced that it had entered into an agreement with the FDIC to substantially purchase all loans and certain other assets, and assume all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. The company’s Loan Agreement is now ultimately held by First Citizens and First Citizen’s management have communicated to SVB’s customers, including Augmedix, that there is no change to our agreements in place nor with our relationship managers. 

On April 10, 2023, Robert Faulkner was appointed as a Class III director of the Company, effective as of April 14, 2023. Mr. Faulkner’s compensation for serving as a director of the Board will consist of cash fee in the amount of $40,000. In addition, Mr. Faulkner will be granted restricted stock units, with a grant date fair market value of $100,000 on the date of each annual stockholder meeting of the Company, with each such grant vesting on the one year anniversary of the grant date of such grant.