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LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
LONG-TERM DEBT

NOTE 8. LONG-TERM DEBT

 

The composition of the long-term debt follows:

 

  

December 31,

2025

  

December 31,

2024

 
         
Oak Street Funding LLC Term Loan for the acquisition of EBS and USBA, variable interest of Prime Rate plus 2.5%, maturing August of 2028, net of deferred financing costs of $0 and $7,950 as of December 31, 2025, and 2024, respectively  $-   $305,996 
Oak Street Funding LLC Senior Secured Amortizing Credit Facility for the acquisition of CCS, variable interest of Prime Rate plus 1.5%, maturing December 2028, net of deferred financing costs of $0 and $9,974 as of December 31, 2025, and 2024, respectively   -    507,307 
Oak Street Funding LLC Term Loan for the acquisition of SWMT, variable interest of Prime Rate plus 2.0%, maturing April 2029 net of deferred financing costs of $0 and $6,260 as of December 31, 2025 and 2024, respectively   -    593,527 
Oak Street Funding LLC Term Loan for the acquisition of FIS, variable interest of Prime Rate plus 2.0%, maturing May 2029, net of deferred financing costs of $0 and $25,209 as of December 31, 2025 and 2024, respectively   -    1,505,894 
Oak Street Funding LLC Term Loan for the acquisition of ABC, variable interest of Prime Rate plus 2.0%, maturing September 2029, net of deferred financing costs of $0 and $29,169 as of December 31, 2025 and 2024, respectively   -    2,514,031 
Oak Street Funding LLC Term Loan, variable interest of Prime Rate plus 2.5%, maturing May 2032, for the acquisition of Barra, net of deferred financing costs of $0 and $155,337 as of December 31, 2025 and December 31, 2024, respectively   5,101,266    5,633,564 
Long term debt   5,101,266    11,060,319 
Less: current portion   (1,038,294)   (1,591,919)
Long-term debt  $4,062,972   $9,468,400 

 

Oak Street Funding LLC – Term Loans and Credit Facilities

 

During the year of 2018 the Company entered into two debt agreements with Oak Street Funding LLC (“Oak Street”). On August 1, 2018, EBS and USBA entered into a Credit Agreement with Oak Street whereby EBS and USBA borrowed $750,000 from Oak Street under a Term Loan. The Term Loan is secured by certain assets of the Company. Interest accrues at a variable rate of Prime Rate plus 2.5% on the basis of a 360-day year, maturing 120 months from the Amortization Date (September 25, 2018). The Company incurred debt issuance costs associated with the Term Loan in the amount of $22,188. On December 7, 2018, CCS entered into a Facility with Oak Street whereby CCS borrowed $1,025,000 from Oak Street under a senior secured amortizing credit facility. The borrowing rate under the Facility is a variable rate equal to Prime plus 1.50% and matures 10 years from the closing date. The Company incurred debt issuance costs associated with the Facility in the amount of $25,506, which were deferred and are amortized over the length of the Facility.

 

During the year of 2019 the Company entered in a number of Credit Agreements with Oak Street whereby the Company borrowed a total amount of $7,912,000 under the Term Loans. The Term Loans are secured by certain assets of the Company. The borrowing rates under the Facility is a variable rate equal to Prime plus 2.00% and matures 10 years from the closing date. The Company recorded debt issuance costs associated with the loans in total of $181,125.

 

On April 26, 2022 the Company entered into a secured promissory note (the Note) with Oak Street subject to the terms of the Master Credit Agreement, whereby the Company borrowed $6,250,000 with a maturity date of May 25, 2032. The Note is secured by certain assets of the Company and subject to certain financial covenants. Interest accrues at the Prime Rate plus 2.50% on the basis of a 360-day year. The Company incurred debt issuance costs associated with the Note of $214,257.

 

During fiscal year ended, December 31, 2025, and in January 2026, the Company pre-paid $4,997,292 and $465,335, respectively, totaling $5,462,627 on its long-term Oak Street debt pursuant to proceeds received from certain agency sales as described further in Note 16. No pre-payment penalties were assessed.

 

 

Aggregated cumulative maturities of long-term obligations (including the Term Loan and the Facility), excluding deferred financing costs, as of December 31, 2025 are:

 

Fiscal year ending December 31, 

Maturities of

Long-Term Debt

 
2026  $1,038,294 
2027   624,240 
2028   684,412 
2029   752,386 
2030   826,062 
Thereafter   1,309,783 
Total   5,235,177 
Less debt issuance costs   (133,911)
Total  $5,101,266 

 

Short-Term Financings

 

The Company has short-term notes payable for financed items such as insurance premiums. Total financed for the year ended December 31, 2025 and 2024 respectively was approximately $158,000 and $160,000. These are normally paid in equal installments over a period of twelve months or less and carry interest rates ranging between 11% and 12% per annum. As of December 31, 2025 and 2024, approximately $59,000 remains outstanding on short-term financings for each year.