Note 7 - Debt Obligations

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 7 — Debt Obligations

Revolving Line of Credit

As of March 31, 2024 and December 31, 2023, the Company had $20.0 million of revolving debt outstanding with an interest rate of 9.00% per annum. 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 $41 thousand for the three months ended March 31, 2024 and $33 thousand for the three months ended April 2, 2023.

Financing Arrangements

The amount of assets purchased through financing arrangements on the balance sheet were $1.4 million and $1.2 million as of  March 31, 2024 and April 2, 2023, respectively. The corresponding note payable amount for these financing arrangements was $1.4 million and $1.3 million as of March 31, 2024 and April 2, 2023, respectively. Payments related to financing arrangements were $0.2 million for the three months ended March 31, 2024 and April 2, 2023. The Company's outstanding financing arrangements as of  March 31, 2024 have remaining terms of 0.42 years to 1.99 years, with a weighted average remaining term of 1.60 years. Stated interest rates for its financing arrangements outstanding as of  March 31, 2024 range from 3.75% to 9.89%, with a weighted average interest rate of 8.20%. The Company's outstanding financing arrangements as of  April 2, 2023 had remaining terms of 1.42 years to 2.95 years, with a weighted average remaining term of 2.16 years. Stated interest rates for its financing arrangements outstanding as of  April 2, 2023 ranged from 3.75% to 9.89%, with a weighted average interest rate of 6.91%.

Remaining amounts due to be paid in Fiscal Years 2024 and 2025 as of  March 31, 2024 are $0.9 million and $0.7 million, respectively, less amounts representing interest of $0.1 million results in the total notes payable amount of $1.4 million.