v3.26.1
Long Term Debt, Revolving Credit Facility and Senior Secured Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Long Term Debt, Revolving Credit Facility and Senior Secured Debt Long Term Debt, Revolving Credit Facility and Senior Secured Debt
The following table summarizes outstanding debt at March 31, 2026 and December 31, 2025:
March 31, 2026December 31, 2025
(in thousands)PrincipalDebt Issuance CostsCarrying ValuePrincipalDebt Issuance CostsCarrying Value
Secured term loan
$20,125 $(210)$19,915 $21,562 $(257)$21,305 
Secured revolving credit facility
$655 $(58)$597 $655 $(68)$587 
Revolving Credit Facility and Senior Secured Debt - On September 25, 2025, the Company entered into a new credit agreement (the “JPM Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders. The JPM Credit Agreement provides for a $23.0 million secured term loan (the “Term Loan”) with term payments through September 25, 2029, and a $5.0 million secured revolving credit facility (the “Revolver”) maturing September 25, 2027. Loans under the JPM Credit Agreement accrue interest at a rate per annum equal to, at the Company’s option, either a term rate based on the secured overnight financing rate (“SOFR”) plus a margin of 3.50%, or the CB Floating Rate (“CBFR”) plus a margin of 2.50%. Interest is payable in arrears, either at the end of the applicable interest period for SOFR-based loans or quarterly for CBFR-based loans.
Debt issuance costs incurred in connection with obtaining new debt facilities are capitalized and amortized over the term of the related debt. For the Term Loan, these costs are presented as a direct reduction of the carrying amount of the debt. For the Revolver, such costs are presented as an asset. Amortization of debt issuance costs is included in interest expense in the condensed consolidated statements of comprehensive loss.
Principal payments on the Term Loan commenced on December 31, 2025, and will be made in quarterly installments of $1.4 million on the last day of each fiscal quarter. The Company may prepay outstanding loans at any time without premium or penalty, subject to customary breakage costs for SOFR-based borrowings.
Retirement of Senior Secured Debt - Concurrently, on September 25, 2025, in connection with the funding of the Term Loan and the initial draw of $0.7 million under the Revolver, the Company paid all amounts due under and terminated in full all commitments under the Note and Warrant Purchase and Security Agreement, dated August 6, 2020, with NH Expansion Credit Fund Holdings LP and the related senior secured debt (collectively, the “Prior Debt”). The payoff and termination of the Prior Debt resulted in the release of all associated liens and security interests.
The full repayment of the Prior Debt was accounted for as a debt extinguishment under ASC 470-50. On September 25, 2025, the Company recognized a $0.5 million loss on extinguishment of debt, which included the write-off of unamortized debt issuance costs and debt discounts.
Debt Covenants and Restrictions - The JPM Credit Agreement contains customary covenants, including requirements to maintain certain financial ratios and restrictions on additional indebtedness, asset sales, and dividend payments.
As of March 31, 2026, the Company was in compliance with all covenants under the JPM Credit Agreement.
Collateral and Security - The Company’s obligations under the JPM Credit Agreement are secured by a first-priority lien on substantially all of the Company’s tangible and intangible assets, including the Company’s equity interests in subsidiaries.
Maturity Analysis - Future principal payments on the Term Loan and Revolver are due as follows:

(in thousands)Principal Payments
2026$4,313 
2027 (including the Revolver)6,405 
20285,750 
20294,312 
Total Principal Payments20,780 
Debt Issuance Costs(268)
Total20,512 
Less current maturities of the Term Loan(5,750)
Long term debt, net of current maturities and debt issuance costs$14,762