Long-Term Debt and Line-of-Credit

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-Term Debt and Line-of-Credit

Note 8. Long-Term Debt and Line-of-Credit

UMB Loan Agreement

On July 1, 2020, we entered into a Loan and Security Agreement (as amended, the “UMB Loan Agreement”) with UMB Bank, N.A. (“UMB”). Under the UMB Loan Agreement we obtained a $3,000 term loan, with equal monthly payments fully amortized over three years which was repaid in full in the second quarter of 2022, and a revolving credit facility, with a maximum commitment of $4,000 bearing interest at the one-month term SOFR rate + 6.83% with a floor of 7.75%.

On January 23, 2023, we entered in to the Consent and Seventh Amendment to Loan and Security Agreement, which consents to the sale of Scott's Liquid Gold® Wood Care and Scott's Liquid Gold® Floor restore assets, updates defined terms and financial covenants under the UMB Agreement , and reduces the maximum commitment on the revolving credit facility to $250.

The UMB Loan Agreement was terminated on February 27, 2023 and the revolving credit facility was paid in full on February 28, 2023. The loans were secured by all of the assets of the Company and its subsidiaries. Unamortized loan costs were $0 and $100 as of March 31, 2023 and December 31, 2022, respectively. Amortization of loan costs for the three months ended March 31, 2023 was $100, including $83 that were expensed as a result of the termination of the UMB Loan Agreement. Amortization of loan costs for the three months ended March 31, 2022 was $50.

La Plata Loan Agreement

On November 9, 2021, we entered into a loan and security agreement (as amended, the “La Plata Loan Agreement”) with La Plata Capital, LLC (“La Plata”). Under the La Plata Loan Agreement, we obtained a $2,000 term loan that bears interest at 14% and a $250 term loan that bears interest at 15%, both of which mature on November 9, 2023. Interest-only payments are required on a monthly basis through June 30, 2023, with monthly principal and interest payments of $30K beginning on July 1, 2023. All remaining unpaid principal and interest are fully due on November 9, 2023. We repaid $1,000 of principal against the La Plata Loan Agreement during the first quarter of 2022.

The La Plata Loan Agreement requires compliance with affirmative, negative, and financial covenants, as determined on a monthly basis beginning in June 2023. The La Plata Loan Agreement is secured by all of the assets of the Company and all of its subsidiaries.

As of March 31, 2023, our La Plata term loan had an outstanding balance of $1,220. La Plata unamortized loan costs were $15 and $20 as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the three months ended March 31, 2023 and 2022 were $5 and $5, respectively.