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Notes and Lines of Credit
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Notes and Lines of Credit

(6) Notes and Lines of Credit

 

 Notes and lines of credit consist of the following:

 

        
      As of June 30, 2022   As of December 31, 2021 
   Rate  Total Borrowing Capacity   Outstanding Borrowed Balance   Total Borrowing Capacity   Outstanding Borrowed Balance 
Strandler, LLC (1)  4.00%  $   $1,000    n/a    n/a 
Beachcorp, LLC (1)  5.25%   n/a    n/a   $1,000   $1,000 
Beachcorp, LLC (2)  5.50%   5,938    3,835    3,753    3,365 
Beachcorp, LLC (3)  5.50%   3,780    2,000    n/a    n/a 

 

Related party interest summary:

 

                             
   Three months ended June 30,   Six months ended June 30, 
   2022   2021   2022   2021 
                     
Interest expense, related parties  $68   $911   $107   $1,042 
Accrued interest expense, related parties   29    17    29    17 

 

 

1)On January 28, 2022 the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the previously existing Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%, and it matures on March 31, 2024. Strandler, LLC is also an affiliate of Bradford T. Whitmore.

 

2)On January 28, 2022 the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver facility to March 31, 2024.

 

3)On January 28, 2022, in connection with the A&R Loan Agreement, the Company entered into a new promissory note in order to evidence the Inventory Revolver facility, allowing borrowing of up to $4,000, at an amount equivalent to 50% of eligible inventory, as defined. The interest rate on the Inventory Revolver is set to the prime rate plus 0.75%. The Inventory Revolver facility matures March 31, 2024.

 

Beachcorp, LLC and Strandler, LLC are affiliates of Mr. Bradford T. Whitmore, who beneficially owns a majority of the Company’s common stock and is the brother of Ms. R. Janet Whitmore, a director of the Company and the chair of the Company’s board of directors. The A/R Revolver Facility, the Inventory Facility and the New Term Loan are all secured by all the unencumbered assets of the Company and subordinated to the Company’s letters of credit with Libertyville Bank & Trust. 

 

Since July 2014, we have maintained a bank-issued letter of credit for up to $30 in borrowings to support our obligations under our Romeoville, Illinois facility lease agreement. No borrowings have been incurred under this promissory note. On December 21, 2021, Libertyville issued a letter of credit for up to $500 in borrowings to support our obligations under our newly leased manufacturing and warehouse space in Bolingbrook, Illinois. For both letters of credit, interest on drawn balances will be at the prime rate plus 1%. We expect to renew these agreements annually, as the respective leases require.