Note 8 - Long-term Debt |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2026 | |||
| Notes to Financial Statements | |||
| Debt Disclosure [Text Block] |
On December 22, 2025, the Company executed a Sixth Loan Modification Agreement and Third Amended and Restated Credit Agreement (collectively, the “Loan Agreement”) increasing the credit limit from $15.0 million to $25.0 million and extending the maturity date of the credit facility (the “Credit Facility”) with First Hawaiian Bank to December 31, 2030. The Loan Agreement provides revolving or term loan borrowing options. Interest on revolving borrowing is calculated based on First Hawaiian Bank’s minus 1.125 percentage points. Interest on term loan borrowing is fixed at the First Hawaiian Bank’s commercial loan rates with interest rate swap options available. The Company has pledged approximately 30,000 square feet of commercial leased space in the Kapalua Resort as collateral for the Credit Facility. Net proceeds from the sale of any collateral are required to be repaid toward outstanding borrowings and will permanently reduce the Credit Facility’s revolving commitment amount. There are no commitment fees on the unused portion of the Credit Facility.
The terms of the Credit Facility include various representations, warranties, affirmative, negative and financial covenants and events of default customary for financings of this type. Financial covenants include a minimum liquidity (as defined) of $2.0 million, a maximum of $45.0 million in total liabilities, and a limitation of new indebtedness on collateralized properties without the prior written consent of the Bank.
The outstanding balance of the Credit Facility was $6,500,000 and $4,000,000 at March 31, 2026 and December 31, 2025, respectively. The Company was in compliance with Credit Facility at March 31, 2026.
In July 2024 the Company entered into a loan (the “Equipment Loan”) to finance equipment purchases. The Equipment Loan has a principal amount of $338,720, bears a 0% interest rate per annum, and requires monthly payments of $7,057. The Equipment Loan matures in July 2028. The outstanding balance on the loan was approximately $0.2 million on each of March 31, 2026 and December 31, 2025.
|