| Debt |
NOTE E – DEBT As of March 31, 2026 and December 31, 2025, the Partnership had the following notes payable (in thousands):
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March 31, 2026 |
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December 31, 2025 |
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Note payable due in monthly instalments of $13,195, at 0.00% stated interest, 8.75% imputed interest, maturing October 2028, secured by certain equipment of the Partnership. |
$ |
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365 |
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$ |
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396 |
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Note payable due in monthly instalments of $8,676, at 0.00% stated interest, 8.75% imputed interest, maturing October 2027, secured by certain equipment of the Partnership. |
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154 |
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176 |
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Note payable due in monthly instalments of $14,043, at 6.89% stated interest, 8.50% imputed interest, maturing January 2028, secured by certain equipment of the Partnership. |
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285 |
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321 |
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Note payable due in monthly instalments of $18,176, at 5.99% stated interest, 8.50% imputed interest, maturing February 2028, secured by certain equipment of the Partnership. |
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385 |
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430 |
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Note payable due in monthly instalments of $9,567, at 5.99% stated interest, 8.50% imputed interest, maturing April 2028, secured by certain equipment of the Partnership. |
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219 |
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242 |
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Note payable due in monthly instalments of $8,865, at 3.99% stated interest, 8.50% imputed interest, maturing May 2028, secured by certain equipment of the Partnership. |
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210 |
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231 |
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Note payable due in monthly instalments of $2,923, at 0.00% stated interest, 8.50% imputed interest, maturing June 2029, secured by certain equipment of the Partnership. |
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99 |
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106 |
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Note payable due in monthly instalments of $1,594, at 0.00% stated interest, 8.50% imputed interest, maturing July 2029, secured by certain equipment of the Partnership. |
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55 |
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59 |
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Note payable due in monthly instalments of $73,514, at 5.20% stated interest, 8.50% imputed interest, maturing September 2028, secured by certain equipment of the Partnership. |
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1,981 |
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2,156 |
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Note payable due in monthly instalments of $4,422, at 0.00% stated interest, 8.00% imputed interest, maturing October 2029, secured by certain equipment of the Partnership. |
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163 |
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173 |
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Note payable due in monthly instalments of $7,899, at 0.00% stated interest, 8.00% imputed interest, maturing November 2029, secured by certain equipment of the Partnership. |
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298 |
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315 |
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Note payable due in monthly instalments of $1,438, at 0.00% stated interest, 8.00% imputed interest, maturing December 2030, secured by certain equipment of the Partnership. |
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67 |
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70 |
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Note payable due in monthly instalments of $19,987 at 0.00% stated interest, 8.00% imputed interest, maturing November 2027, secured by certain equipment of the Partnership. |
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373 |
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425 |
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Note payable due in monthly instalments of $1,473, at 0.00% stated interest, 7.75% imputed interest, maturing April 2031, secured by certain equipment of the Partnership. |
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73 |
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— |
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Note payable due in monthly instalments of $17,084, at 5.20% stated interest, 7.75% imputed interest, maturing May 2029,secured by certain equipment of the Partnership. |
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547 |
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— |
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5,274 |
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5,100 |
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Less: current portion |
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(2,040 |
) |
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(1,849 |
) |
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$ |
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3,234 |
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$ |
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3,251 |
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The Partnership maintains a revolving credit note agreement with a financial institution which is secured by the Partnership’s property and equipment. The note originated on December 16, 2022, with an initial maximum availability of $8.0 million, and with an original maturity of December 15, 2025. Payments on principal are required only to the extent the outstanding balance is greater than the maximum availability, which is reduced annually based on the terms of the revolving credit note agreement. Payments of interest on the outstanding balance are due monthly. On July 24, 2024, the note was amended with a maximum availability of $14.1 million and extending maturity date to January 24, 2028. On December 19, 2025, the note was further amended with a maximum availability of $16.6 million and extending maturity date to December 19, 2028. As of December 31, 2025, the maximum availability was $16.6 million, of which $11.1 million was outstanding. The note bears interest at the prime rate plus one percent (as defined in the revolving credit note agreement). As of March 31, 2026, the maximum availability was $16.6 million, of which $15.2 million was outstanding. Approximately $5.5 million was required to be repaid on or before March 31, 2027, and was classified as current on the condensed balance sheet as of March 31, 2026. The Partnership maintains a revolving line of credit with a financial institution which is secured by the Partnership’s property and equipment. The line originated on November 12, 2018, and matures on December 26, 2027, as amended, and bears interest at the Wall Street Journal’s prime rate plus 0.50%. Payment of principal is due upon maturity with interest payments on the outstanding balance due monthly. The maximum availability for the line of credit is $8.0 million, all of which was outstanding as of March 31, 2026, and December 31, 2025. The aggregate effective interest rate on the revolving credit note and the revolving line of credit agreements was approximately 7.52% and 8.28% for the three months ended March 31, 2026, and March 31, 2025, respectively. The Partnership must maintain a minimum current ratio, minimum net worth, and maximum leverage (as defined in the revolving credit note and revolving line of credit agreements). As of March 31, 2026, and December 31, 2025, there were no debt covenant violations. Future maturities of long-term debt for the years following March 31, 2026 are as follows (in thousands):
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Remaining nine months of 2026 |
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$ |
5,657 |
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2027 |
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15,747 |
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2028 |
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6,779 |
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2029 |
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268 |
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2030 |
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33 |
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Thereafter |
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6 |
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$ |
28,490 |
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