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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 9.Debt The Company’s obligations under debt arrangements consisted of the following:
On May 15, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with White Oak ABL, LLC and White Oak Commercial Finance, LLC, providing for a $65.0 million asset-based revolving credit facility (the “Revolver”) and a $38.0 million fixed asset term loan (the “Term Loan”). The Credit Agreement, as subsequently amended, matures on May 15, 2028 and is secured by substantially all of the assets of the Company and its subsidiaries, including fixed assets and accounts receivable. The Company has a maximum borrowing capacity under the Revolver of $65.0 million. There is a letter of credit sublimit that is equal to the lesser of $5.0 million and the aggregate unused amount of the revolving commitments then in effect. The Company is subject to a commitment fee for the unused portion of the maximum borrowing availability under the Revolver. The Revolver termination date is the earlier of the Credit Agreement termination date, May 15, 2028, or the date the outstanding balance is permanently reduced to zero, in accordance with the terms of the Credit Agreement. As of June 30, 2025, the Company had $10.0 million in borrowings under the Revolver. The Company’s borrowing availability under the Revolver at June 30, 2025 was approximately $21.9 million. The Credit Agreement is used to finance working capital and general corporate purposes, capital expenditures, permitted acquisitions and associated transaction fees, and to refinance existing indebtedness. Borrowings under the Revolver may be repaid and reborrowed, subject to the borrowing base and other conditions. As amended, the Revolver and Term Loan bear interest at rates based on 30-day plus applicable margins, subject to a SOFR floor. As of June 30, 2025, the applicable margin is 4.25% for the Revolver and 6.50% for the Term Loan, with a 4.00% . The quarterly weighted average interest rate for the Credit Agreement, as of June 30, 2025 and 2024 was 10.46% and 12.07%, respectively. The Credit Agreement contains customary affirmative and negative covenants, including limitations on indebtedness, liens, investments, asset sales, and dividends, as well as financial maintenance covenants. The financial covenants, as amended, include a minimum Consolidated Fixed Charge Coverage Ratio and/or Consolidated EBITDA thresholds and a minimum liquidity requirement, each tested periodically. Financial covenants Restrictive financial covenants under the amended Credit Agreement include:
Under the Credit Agreement, the Company may not permit Liquidity (as defined in the Credit Agreement) to fall below $15.0 million (i) for more than (3) consecutive Business Days (as defined in the Credit Agreement) nor (ii) as of the close of business on Friday of each week. In addition, the Credit Agreement contains events of default that are usual and customary for similar arrangements, including non-payment of principal, interest or fees; breaches of representations and warranties that are not timely cured; violation of covenants; bankruptcy and insolvency events; and, events constituting a change of control. The Company was in compliance with all financial covenants under the Credit Agreement as of June 30, 2025. Other debt The Company has entered into debt agreements with Mobilease for the purpose of financing equipment purchased. As of June 30, 2025 and December 31, 2024, the carrying value of this debt was $1.2 million and $1.4 million, respectively. The agreements are secured by the financed equipment assets and the debt is included as a component of current debt and long-term debt on the Condensed Consolidated Balance Sheets. On June 23, 2023, the Company closed on a land-sale leaseback contract for the Company’s Port Lavaca South Yard property located in Port Lavaca, Texas for a purchase price of $12.0 million. A portion of the operating lease above the fair value of the land was financed by the Company. As of both June 30, 2025 and December 31, 2024, the carrying value of this debt was $2.4 million. |
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