Note 7 - Debt and Other Financing Arrangements

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

7.         Debt and Other Financing Arrangements

On March 20, 2014, the Company entered into an equipment financing arrangement (“Loan Agreement”) with Banc of America Leasing & Capital, which it amended on August 8, 2014, September 15, 2015, October 30, 2017, and December 2, 2019. The terms of the arrangement are detailed in the 10-K.

The weighted average interest rate on outstanding debt under the Loan Agreement was 3.5% and 3.4% for the three and nine months ended September 30, 2021. The interest expense was $12 thousand and $38 thousand for the three and nine months ended September 30, 2021, respectively. As of September 30, 2021, the weighted average interest rate was 3.1% and there was $1.4 million of outstanding debt related under the loan agreement. The Company was in compliance with all loan covenants under the Loan Agreement as of September 30, 2021.

On May 1, 2020, the Company entered into a term loan with Bank of America N.A. under the PPP administered by the United States Small Business Administration (“SBA”) under the CARES Act (the “PPP Loan”). The principal amount of the PPP Loan was $2.1 million, which was evidenced by a promissory note with a maturity date of May 4, 2022. The note bore interest on the unpaid balance at the rate of one percent (1%) per annum.

In July 2021, the PPP Loan was 100% forgiven by the SBA. As a result, in July 2021, the Company recorded a gain on the forgiveness of the PPP Loan in the amount of $2.1 million.

The annual principal repayment requirements for debt obligations as of September 30, 2021, were as follows (in thousands):

2021	$	173
2022		664
2023		294
2024		305
Long-term debt from equipment financing		1,436
Less: Current portion of long-term debt		(696	)
Total long-term debt, net of current portion	$	740