Note 7 - Line of Credit and Long-term Debt

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

7. Line of credit and long-term debt

Line of credit

In May 2021, the Company acquired Global Cooling and assumed a line of credit which bore interest at a floating rate equal to the 3-month LIBOR rate plus 5.50%. The maximum allowed on the line of credit was $5.0 million. The line was secured by substantially all assets of Global Cooling. In October 2021, the Company paid off the entirety of the outstanding balance on the line of credit and all related interest.

Long-term debt

In May 2021, the Company assumed three term notes in the acquisition of Global Cooling. At the time of acquisition, these notes carried aggregate outstanding principal balances of $4.4 million. These term notes bore interest at a floating rate equal to the 3-month LIBOR rate plus 6.50%. The term notes included financial covenants tied to the performance of Global Cooling.

In October 2021, the Company entered into amended and restated term notes for all three term notes assumed in the acquisition of Global Cooling. Pursuant to the loan agreements, one lender provided two term notes in the amounts of $1.4 million and $1.4 million. A separate lender provided one term note in the amount of $1.8 million. All three term notes bear interest at a fixed rate of 4%, are interest-only with one balloon principal payment at maturity, and can be pre-paid without penalty at any time. All financial covenants included in the original agreements previously in effect were removed by the amended loan agreements.

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

					December 31,
(In thousands)	Maturity Date	Interest Rate			2021			2020
2022 term loan 1	Sep-24		4.0	%	$	1,750		$	-
2022 term loan 2	Various		4.0	%		2,813			-
Insurance premium financing	Apr-22		4.0	%		373			-
Paycheck Protection Program loan	May-22		1.0	%		-			295
Freezer equipment loan	Dec-25		5.7	%		612			365
Manufacturing equipment loans	Oct-25		5.7	%		355			439
Freezer installation loan	Various		6.3	%		1,334			156
Other loans	Various	Various				9			14
Total debt, excluding unamortized debt issuance costs						7,246			1,269
Less: unamortized debt issuance costs						(31	)		-
Total debt						7,215			1,269
Less: current portion of debt						(862	)		(614	)
Total long-term debt					$	6,353		$	655

The 2022 term loans are secured by substantially all assets of Global Cooling. Equipment loans are secured by the financed equipment.

As of December 31, 2021, the scheduled maturities of loans payable for each of the next five years and thereafter were as follows:

(In thousands)	Amount
2022	$	862
2023		813
2024		2,294
2025		543
2026		221
Thereafter		2,513
Total debt, excluding unamortized debt issuance costs		7,246
Less: unamortized debt issuance costs		(31	)
Total debt	$	7,215