Note 9 - Debt |
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| Long-Term Debt [Text Block] |
Debt outstanding consists of the following (in thousands):
Note Payable – Related Party
The Company has received the benefit of cash infusions from Gill Family Capital Management, Inc. (“GFCM”) in the form of secured promissory note obligations totaling $12,000,000 in principal as of June 29, 2025 and $9,000,000 as of December 31, 2024 (the “Note”). GFCM is an entity controlled by the Company’s Chairman, President and Chief Executive Officer, Jeffrey T. Gill, and one of our directors, R. Scott Gill. GFCM, Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. As of June 29, 2025, our principal commitment under the Note was $2,000,000 due on April 1, 2026, $2,000,000 on April 1, 2027, $5,000,000 on April 1, 2028 and the balance of $3,000,000 due on April 1, 2029. Interest on the Note is reset on April 1 of each year, at the greater of 8.0% or 500 basis points above the five-year Treasury note average during the preceding 90-day period, in each case, payable quarterly, which was 9.25% as of June 29, 2025. The Note allows for a deferral of payment for up to 100% of the interest due on the Note to April 1, 2026. The total amount of interest on the Note deferred as of June 29, 2025 was $1,080,000.
During the first quarter of 2025, the Company amended the Note to increase the principal amount by $3,000,000, which is due on April 1, 2029. The amendment increased the aggregate amount previously loaned by GFCM to the Company from $9,000,000 to $12,000,000. This additional amount loaned to the Company in the first quarter of 2025 was approved by the Audit Committee and provided the Company necessary liquidity.
Obligations under the Note are guaranteed by all of the subsidiaries and are secured by a first priority lien on substantially all assets of the Company, including those in Mexico.
Finance Lease Obligations
As of June 29, 2025, the Company had $1,773,000 outstanding under finance lease obligations for both property and machinery and equipment with maturities through 2029 and a weighted average interest rate of 8.9%.
Equipment Financing Obligations
As of June 29, 2025, the Company had $1,218,000 outstanding under equipment financing facilities, with a weighted average interest rate of 6.9% and payments due through 2029. Payments on the Company’s equipment financing obligations are due as follows (in thousands):
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