Notes Payable

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Notes Payable

Line of Credit

On November 1, 2022, the Company entered into a credit agreement (the "Credit Agreement") with two banks, with one bank in the capacity as a lender and the administrative agent (collectively with the other lender, the “Lenders”). The Credit Agreement provides for a revolving credit facility in the initial aggregate principal amount of $90,000,000 (the “Revolving Facility”). The Revolving Facility includes the ability for the Company to request an increase to the commitment by an additional amount of up to $50,000,000, though no Lender (nor the Lenders collectively) is obligated to increase its respective commitments. Borrowings under the Revolving Facility bear interest at a per annum rate equal to: (i) at the Company’s option, (x) the base rate or (y) the adjusted term SOFR rate, plus (ii) the applicable margin. The applicable margins are based on the Company’s consolidated net leverage ratio, adjusted on a quarterly basis. The initial applicable margins are 1.25% for an adjusted term SOFR loan and 0.25% for a base rate loan and will be updated based on the Company's consolidated net leverage ratio. The Revolving Facility matures on November 1, 2027, the five-year anniversary of the closing date. The Revolving Facility is secured by a first-priority lien on substantially all of the Company’s present and future personal assets and intangible assets. The Revolving Facility is subject to certain financial covenants such as a net leverage ratio and interest coverage ratio, as defined in the Credit Agreement.

As of December 31, 2023, there was a $25,000,000 outstanding balance on the Revolving Facility. The Company drew down an additional $15,000,000 on February 8, 2024 under the Revolving Facility. On February 27, 2024, the Company paid the $40,000,000 line of credit balance. On March 4, 2024, the Company drew down $15,000,000 and made an additional $15,000,000 draw on March 18, 2024. As of March 31, 2024, the outstanding balance of the line of credit was $30,000,000 and the unused line of credit was $60,000,000. The Company incurred $449,099 and $0 in interest charges relating to its line of credit for the three months ended March 31, 2024 and 2023, respectively, which is reflected in interest income (expense) on the Company's unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

Notes Payable

The Company has various loans with finance companies with monthly installments aggregating $2,864, inclusive of interest ranging from 2.5% through 7.5%. The loan notes mature at various times through 2026 and are secured by transportation equipment.

The following table summarizes the Company’s notes payable:

	March 31, 2024		December 31, 2023
Equipment and financing loans payable, between 2.5% and 7.5% interest and maturing between June 2024 and August 2026	$	60,093	$	69,717
Total notes payable	60,093		69,717
Less: current portion of notes payable	26,367		28,131
Total non-current portion of notes payable	$	33,726	$	41,586

Interest expense was $883 and $29,034 for the three months ended March 31, 2024 and 2023, respectively.

Future minimum annual maturities of notes payable as of March 31, 2024 are as follows:

	Notes Payable
2024, remaining	$	19,981
2025	25,781
2026	14,331
Total maturities	60,093
Current portion of notes payable	(26,367)
Long-term portion of notes payable	$	33,726