Note 7 - Line of Credit and Long-term Debt

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

7. Line of credit and long-term debt

The Company maintains a line of credit, which was assumed in the acquisition of Global Cooling, with a bank which expires in June 2023. The outstanding balance bears interest at a floating rate equal to the 3-month LIBOR rate plus 5.50%. The maximum allowed on the line of credit is $5,000,000. The line is secured by substantially all assets of Global Cooling.

Long-term debt consisted of the following as of  June 30, 2021 and December 31, 2020:

					June 30,			December 31,
(In thousands)	Maturity Date	Interest Rate			2021			2020
2019 term loan	Sep-23		8.5	%	$	1,750		$	-
2018 term loan	Sep-23		8.5	%		2,813			-
Insurance premium financing	Apr-22		4.0	%		1,074			-
Paycheck Protection Program loan	May-22		1.0	%		295			295
Freezer equipment loan	Dec-25		5.7	%		685			365
Manufacturing equipment loans	Oct-25		5.7	%		397			439
Freezer installation loan	Various		6.3	%		1,058			156
Other loans	Various	Various				12			14
Total debt						8,084			1,269
Less: Unamortized debt issuance costs						(141	)		-
Total debt, net of unamortized debt issuance costs					$	7,943		$	1,269

The 2019 and 2018 term loans are secured by substantially all assets of Global Cooling.

As of June 30, 2021, the scheduled maturities of loans payable for each of the next five years and thereafter were as follows:

(In thousands)	Amount
2021 (6 months remaining)	$	2,350
2022		952
2023		1,767
2024		1,656
2025		238
Thereafter		1,121
Total	$	8,084

Debt covenants and default provisions

The line of credit, 2019 term loan, and 2018 term loan assumed in the acquisition of Global Cooling contain affirmative and negative covenants that are customary for financings of their respective types. As of June 30, 2021, the Company was not in compliance with certain reporting and financial covenants. For the three months ended June 30, 2021, these covenants were waived by the banks with no modifications made to the existing debt agreements. There were no changes to the debt covenants or default provisions related to the Company’s outstanding debt or other obligations during the six months ended June 30, 2021.