Note 5 - Debt Obligations

6 Months Ended

Jul. 02, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 5 — Debt Obligations

Revolving Line of Credit

As of July 2, 2023 and January 1, 2023, the Company had $15.0 million of revolving debt outstanding with an interest rate of 8.75% and 8.00% per annum, respectively. Heritage Bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the agreement. The Company was in compliance with all loan covenants under the agreement as of the end of the current reporting period. Related interest expenses and annual facility fees recognized were $29 thousand and $62 thousand for the three and six months ended July 2, 2023 and $14 thousand and $39 thousand for the three and six months ended July 3, 2022, respectively.