v3.26.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Debt

Note 7 Long-Term Debt

 

On November 12, 2025, the Company repaid in full two term and equipment notes with M&T Bank in the aggregate amount of $1,368,732. Following repayment, no balances remained outstanding under these facilities at December 31, 2025.

 

Subordinated Shareholder Note

 

On November 12, 2025, in connection with the repayment of term and equipment debt, the Company entered into a subordinated term note (the “Shareholder Note”) with its majority stockholder in the principal amount of $1,268,732.

 

The Shareholder Note:

 

●Bears interest at 6.953% per annum;
   
●Amortizes over 35 monthly payments;
   
●Matures on October 31, 2028, at which time all remaining principal and accrued interest are due; and
   
●Is expressly subordinated to the Company’s obligations under the Credit Agreement.

 

Pursuant to a subordination agreement executed with M&T Bank, prepayments of the Shareholder Note are prohibited and payments are limited to interest only, subject to prior written approval by M&T Bank. The lender retains sole discretion regarding approval of such payments.

 

There are no cross-default provisions between the Shareholder Note and the Credit Agreement.

 

The Shareholder Note is classified as long-term debt at December 31, 2025, except for the portion contractually due within twelve months, if any.

 

Long-Term Debt Maturities

Schedule of Long Term Debt Maturities 

   2025   2024 
         
The Company entered into a $863,607 mortgage note payable, securitized by the Company’s real estate and cross-collateralized with all Company assets, with M&T Bank, requiring monthly installments of $7,389, including interest at a fixed rate of 6.13%. The note matures in February 2029.  $799,052   $836,815 
           
The Company entered into a $236,781 term note payable with M&T Bank, requiring monthly principal installments of $3,385, plus interest at a fixed rate of 6.05%. The note matures in March 2029. This note was paid off in November of 2025 as part of a modification to the M&T debt package.   -    205,829 
           
The Company entered into a $1,775,000 term note payable with M&T Bank, requiring monthly principal installments of $34,886 plus interest at a fixed rate of 6.59%. The note matures in November 2028. This note was paid off in November of 2025 as part of a modification to the M&T debt package.   -    1,436,662 
           
The Company entered into a $1,064,000 term note payable with the U.S. Small Business Administration, requiring monthly installments of $6,652, including fees and interest at a fixed rate of 2.22%. The note matures in June 2036. The note is secured by certain assets of the Company and a personal guaranty of the Company’s stockholder.   616,440    668,006 
           
The Company entered into a $1,268,732 Stockholder Loan, The proceeds of which were applied to pay down the M&T term notes above. The note is subject to an M&T Bank subordination agreement which may limit any repayments. The note amortization calls for monthly payments of $40,031.03 at 6.95% effective annual rate and matures in 10/31/2028.   1,268,732    - 
           
Total Long-Term Debt   2,684,224   3,147,312 
           
Less: Unamortized Debt Issuance Costs   55,091    64,758 
           
Long-Term Debt, Less Unamortized Debt Issuance Costs   2,629,133    3,082,554 
           
Less: Current Maturities   499,853   467,742 
           
Long-Term Debt  $2,129,280   $2,614,812 

 

At December 31, 2025, the future debt maturities are as follows:

 

      
December 31, 2026  $535,615 
2027   534,940 
2028   489,977 
2029   105,275 
2030   109,621 
Thereafter   908,796 
Total  $2,684,224 

 

 

SYNTEC OPTICS HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025 AND 2024