8. Notes Payable and Other Long-Term Liabilities

We capitalize financing costs we incur related to implementing our debt arrangements. We record these debt issuance costs associated with our revolving credit facility and our term loan as a reduction of long-term debt, net and amortize them over the contractual life of the related debt arrangements. The table below summarizes changes in debt issuance costs and discounts (in thousands).

Revolving Credit Facility

On March 12, 2026, QRHC and certain of its domestic subsidiaries entered into a Loan and Security Agreement with Texas Capital Bank (the “TCB Loan Agreement”). Capitalized terms not otherwise defined herein have the meanings set forth in the TCB Loan Agreement. Among other things, the TCB Loan Agreement provides for an asset-based revolving credit facility (the “TCB ABL Facility”) in the maximum principal amount of $40.0 million with a sublimit for issuance of letters of credit of up to $3.5 million. The

maturity date of the TCB ABL Facility is December 30, 2029. The TCB ABL Facility contains an accordion feature permitting the TCB ABL Facility to be increased by up to $10 million.

Certain of QRHC’s domestic subsidiaries are the borrowers under the TCB Loan Agreement. QRHC and certain of its domestic subsidiaries are guarantors under the TCB Loan Agreement. As security for the obligations of the borrowers under the TCB Loan Agreement, (i) the borrowers under the TCB Loan Agreement have granted a first priority lien on substantially all of their tangible and intangible personal property, including a pledge of the capital stock and membership interests, as applicable, of certain of QRHC’s direct and indirect subsidiaries, and (ii) the guarantors under the TCB Loan Agreement have granted a first priority lien on the capital stock and membership interests, as applicable, of certain of QRHC’s direct and indirect domestic subsidiaries.

The TCB Loan Agreement contains certain financial covenants, including a minimum fixed charge coverage ratio. In addition, the TCB Loan Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The TCB Loan Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, change of control, and failure of any guaranty or security document supporting the TCB Loan Agreement to be in full force and effect. Upon the occurrence of an event of default, the outstanding obligations under the TCB Loan Agreement may be accelerated and become immediately due and payable.

The TCB ABL Facility bears interest, at the lesser of the Maximum Rate, as defined in the TCB Loan Agreement, or the Applicable Rate of Term SOFR for the interest period in effect, plus a margin ranging from 1.75% to 2.75%.

In connection with the TCB ABL Facility, we incurred a fee of $300 thousand as well as other direct costs of approximately $568 thousand, which are being amortized over the life of the TCB ABL Facility.

The TCB Loan Agreement replaced our Loan, Security and Guaranty Agreement, dated as of August 5, 2020, and as subsequently amended, with PNC Bank, National Association, successor to BBVA USA, which was paid in full and terminated effective March 12, 2026. We recorded $488 thousand in loss on extinguishment of debt in connection with this loan termination, primarily due to the write-off of the unamortized portion of debt issuance costs.

As of March 31, 2026, the TCB ABL Facility borrowing base availability was $38.6 million, of which $19.6 million of principal was outstanding.

Monroe Term Loan

On October 19, 2020, QRHC and certain of its subsidiaries entered into a Credit Agreement (the “Credit Agreement”), dated as of October 19, 2020, which was most recently amended on March 12, 2026, with Monroe Capital Management Advisors, LLC (“Monroe Capital”), as administrative agent for the lenders thereto. Among other things, the Credit Agreement provides for the following:

At the same time as the borrowing of the initial $11.5 million under the Credit Agreement in October 2020, in a separate agreement, we issued Monroe Capital a warrant to purchase 500,000 shares of QRHC’s common stock exercisable immediately. For the delayed draw term loan facility, we issued a separate warrant to purchase 350,000 shares upon drawing on this facility on October 19, 2021. Both warrants have an exercise price of $1.50 per share and an initial expiration date of March 19, 2028. On March 12, 2026, we executed an amendment to extend the expiration of the warrants to June 28, 2030. We estimated the change in fair value of the amended warrants using the Black-Scholes option pricing model and recorded a debt discount for $198 thousand, which is being amortized over the remaining term of the Credit Agreement. The initial fair value of the warrants was fully amortized over the initial term of the Credit Agreement. At the time of the initial warrant issuance, we executed a letter agreement that provides that the warrant holder will receive minimum net proceeds of $1.0 million less any net proceeds received from the sale of the warrant shares, which is conditional on the full exercise and sale of all the warrant shares at the same time.

In March 2026, we amended our Credit Agreement to, among other things, modify its financial covenants. As a result of this modification, we entered into a fee arrangement with Monroe Capital for the payment of an exit fee upon the occurrence of certain

triggering events, which include a change in control, a debt refinancing, or the maturity of the Credit Agreement. The minimum fee that would be due to Monroe Capital per the arrangement is $2.0 million, and there is no limit to the maximum fee to be paid. This fee has been included in debt issuance costs and other long-term liabilities at March 31, 2026, and is being amortized to interest expense over the remaining term of the Credit Agreement. The value of the estimated liability for the exit fee will be adjusted if there is a material change in our estimate prior to a triggering event.

Debt Covenants

Our TCB Loan Agreement and our Credit Agreement contain certain financial covenants, including a minimum fixed charge coverage ratio. We are in compliance with financial covenants under our loan agreements at March 31, 2026 and expect to be in compliance for the remainder of 2026 and thereafter.

Interest Expense

The amount of interest expense related to borrowings for the three months ended March 31, 2026 and 2025 was $1.8 million and $1.8 million, respectively. Interest expense related to amortization of debt issuance fees and debt discount costs as well as interest related to vendor supply chain financing programs totaled $0.3 million and $0.4 million, respectively, for the three months ended March 31, 2026 and 2025.