Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt

NOTE 7 – DEBT

Bank Lines of Credit

In April 2022, the Company obtained a domestic revolving line of credit of $2,000,000 with Torrey Pines Bank, which was renewed in June 2023 and will expire in September 2026 at the current prime rate. To access this line of credit, the Company must maintain a minimum cash balance of $2,500,000 with the bank and maintain a maximum debt to tangible net worth of ratio of 1.00 to 1.00. The line of credit is also collateralized by the assets of the Company. No balance was outstanding on September 30, 2024 and December 31, 2023, respectively.

Bressner has three revolving lines of credit with German institutions, including UniCredit Bank AG, Commerzbank AG, and VR Bank, with total availability of up to €2,700,000 (US$3,008,586) as of September 30, 2024. Borrowings under the lines of credit bear interest at a variable rate of Euribor plus a stated rate. The rates as of September 30, 2024, for the lines of credit ranged from 3.10% to 5.62%, with the balances remaining open indefinitely or until occurrence of a defined change of control event. There were no outstanding lines of credit balances as of September 30, 2024 and December 31, 2023, respectively.

Foreign Debt Obligations

Bressner had two term loans outstanding as of September 30, 2024, with an aggregate balance outstanding of €1,000,000 (US$1,114,291) as follows:

•On June 18, 2021, Bressner converted €500,000 of its line of credit from UniCredit Bank into a note payable. The note was originally due December 17, 2021, and subsequently extended through June 17, 2022. On June 17, 2022, this note was further extended through December 19, 2022, with accrued interest having been paid current as of the revised maturity date. On December 19, 2022, this note was extended through June 19, 2023. However, on June 19, 2023, this note was further extended through December 19, 2023, and the interest rate was increased to 5.80%, with accrued interest having been paid current as of June 19, 2023. On December 29, 2023, this note was further extended through June 19, 2024, with accrued interest having been paid current as of December 19, 2023. On June 19, 2024, this note was further extended through December 19, 2024, with accrued interest having been paid current as of June 19, 2024, and the interest rate was reduced to 5.55%. The balance outstanding on the note as of September 30, 2024, and December 31, 2023, was €500,000 (US$557,145) and €500,000 (US$551,948), respectively; and

•On April 9, 2021, Bressner converted €500,000 of its line of credit from Commerzbank AG into a note payable. The note was due on September 30, 2021, with a payment of principal and interest due upon maturity. This loan was paid in full on September 30, 2021, with proceeds from a new note with similar terms. This new note had an original maturity date of June 30, 2022; however, this note was further extended through March 31, 2023, with accrued interest having been paid current as of the revised maturity date. On March 30, 2023, this note was further extended through September 29, 2023, and the interest rate was increased to 4.60%, with accrued interest having been paid current as of March 30, 2023. On September 29, 2023, this note was further extended through March 28, 2024, and the interest rate was increased to 5.75%, with accrued interest having been paid current as of September 29, 2023. On March 28, 2024, this note was further extended through September 30, 2024, and the interest rate was reduced to 5.50%, with accrued interest having been paid current as of March 28, 2024. On September 30, 2024, this note was further extended through March 31, 2025, and the interest rate was reduced to 4.75%, with accrued interest having been paid current as of September 29, 2024. The balance outstanding on the note as of September 30, 2024, and December 31, 2023, was €500,000 (US$557,146), and €500,000 (US$551,949), respectively.

On June 30, 2022, Bressner borrowed €1,500,000 (US$1,468,173) from Commerzbank AG, which bore interest at 2.55%, was due in June 2024, and was repayable in twenty-four monthly installments, with payments beginning July 31, 2022. The balance outstanding as of September 30, 2024, and December 31, 2023, was €0 (US$0) and €382,327 (US$422,050), respectively. This loan was collateralized by accounts receivable attributable to a specific customer. This loan was paid in full in July 2024 and will not be extended or renewed.

Additionally, on February 16, 2022, Bressner converted €500,000 of its line of credit from UniCredit Bank into a note payable. On August 16, 2022, this note was extended through February 16, 2023, with accrued interest having been paid current as of the original maturity date. On February 16, 2023, this note was further extended through August 16, 2023, and on August 16, 2023, this note was further extended through February 16, 2024, and the interest rate was increased to 5.63%, with accrued interest having been paid current as of August 16, 2023. The note was repaid in full during the quarter ended March 31, 2024, and the outstanding balance as of September 30, 2024, and December 31, 2023, was €0 (US$0) and €500,000 (US$551,948), respectively.

A summary of outstanding debt obligations as of September 30, 2024, was as follows:

Loan Description	Current Interest Rate	Maturity Date	Balance (Euro)		Balance ($)		Current Portion
Foreign:
Commerzbank AG	4.75%	March-25		500,000		557,146		557,146
Uni Credit Bank AG	5.55%	December-24		500,000		557,145		557,145
			€	1,000,000	$	1,114,291	$	1,114,291