Revolving Credit Facility |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 | |||
| Debt Disclosure [Abstract] | |||
| Revolving Credit Facility |
During the year ended December 31, 2024, the Company entered into a Revolving Financing and Assignment Agreement (“RFAA”), which provided a revolving credit facility of up to $2.0 million (the “Total Credit Facility”) at an interest rate equal to the prime rate plus 3.50% per annum, with a minimum floor rate of 6.00%. This facility was intended to support the Company’s working capital needs and general corporate purposes. On February 24, 2025, the Company made a payment of approximately $0.1 million to fully repay the Total Credit Facility and formally terminated the RFAA. Following this payment, the Company was released from any further obligations under the terms of the agreement.
On February 5, 2025, the Company, through its Subsidiary, entered into a Loan Agreement with Two Shores Capital Corp., pursuant to which the Subsidiary may borrow up to an aggregate maximum amount of $5.0 million, subject to the satisfaction of certain conditions. Advances under the Loan Agreement bear interest at a rate of 13.75% per annum. All present and future obligations of the Subsidiary under the Loan Agreement are secured by a first-priority security interest in all assets of the Company, the Subsidiary, and the Company’s other U.S. subsidiaries. As of March 31, 2025, the outstanding balance under the Loan Agreement, including accrued interest, was approximately $1.3 million. The Company is obligated to provide periodic financial reporting, reporting of its inventory and accounts receivable listings, maintenance of its subsidiaries in good legal standing, maintenance of its insurance policies and payments of its tax obligations. |