Long-Term Debt and Arrangements with Financial Institutions

12 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt and Arrangements with Financial Institutions

NOTE 8 - LONG-TERM DEBT AND ARRANGEMENTS WITH FINANCIAL INSTITUTIONS 

The Company had no long-term debt outstanding at September 30, 2020 or 2019. The Company does not currently require a credit facility.

As of September 30, 2020, total cash deposits with insurance companies covering collateral needs were $85,000.

In April 2020, a financial institution issued an irrevocable standby letter of credit (“letter of credit”) on behalf of the Company for the benefit of one of the Company’s insurance carriers. The maximum amount that can be drawn by the beneficiary under the letter of credit is $150,000. The letter of credit expires in April 2021, unless terminated earlier, and can be extended, as provided by the agreement. The Company intends to renew the letter of credit for as long as the Company does business with the beneficiary insurance carrier. The letter is collateralized by restricted cash of the same amount on any outstanding drawings. To date, no amounts have been drawn under the letter of credit.