Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

Note 7 – Debt

Note payable consisted of the following:

	December 31,
	2023			2022
Term loan due August 18, 2026. Interest (6.29% at December 31, 2023) payable monthly.	$	2,750		$	3,750
Unamortized deferred financing costs		(17	)		(23	)
Total note payable		2,733			3,727
Less current portion		(1,250	)		(1,250	)
Total long-term portion	$	1,483		$	2,477

The scheduled maturities of the term loan, excluding deferred financing costs, at December 31, 2023 are as follows:

2024	$	1,250
2025		1,000
2026		500
Total term loan	$	2,750

Credit Agreement

The Company is party to an Amended and Restated Loan and Security Agreement (as amended and modified from time to time, the “Credit Agreement”) with its existing lender and certain of its subsidiaries. The Credit Agreement provides for, among other things, a $5 million term loan to be repaid in quarterly installments of principal and interest over a term of five years, a revolving line of credit up to a maximum of $5 million (the “Revolving Credit Facility”) and an incremental facility not to exceed $5 million. The termination date of the term loan is August 18, 2026, unless earlier terminated. The termination date of the revolving credit facility is June 30, 2025, unless earlier terminated.

All outstanding amounts under the Credit Agreement bear interest at the Secured Overnight Financing Rate (“SOFR”), plus 2.07%, payable monthly in arrears. Lifeway is also required to pay a quarterly unused revolving line of credit fee of 0.20% and, in conjunction with the issuance of any letters of credit, a letter of credit fee of 0.20%.

The Credit Agreement includes customary representations, warranties, and covenants, including financial covenants requiring the Company to maintain a fixed charge coverage ratio of no less than 1.25 to 1.00, and a minimum working capital financial covenant, as defined, of no less than $11.25 million, in each of the fiscal quarters ending through the expiration date. The Credit Agreement continues to provide for events of default, including failure to repay principal and interest when due and failure to perform or violation of the provisions or covenants of the agreement, as a result of which amounts due under the Credit Agreement may be accelerated. The loans and all other amounts due and owed under the Credit Agreement and related documents are secured by substantially all of the Company’s assets.

Lifeway was in compliance with the fixed charge coverage ratio and minimum working capital covenants at December 31, 2023.

Revolving Credit Facility

As of December 31, 2023, the Company had $0 outstanding under the Revolving Credit Facility. The Company had $5,000 available for future borrowings under the Revolving Credit Facility as of December 31, 2023.

Deferred Financing Costs

As of December 31, 2023, net unamortized deferred financing costs of $17 related to the term loan were included as a direct deduction from outstanding long-term debt.