A summary of our credit facilities as presented on our consolidated balance sheets as follows (in thousands):

June 30, 2026

September 30, 2025

Arrangement

Loan Balance

Interest

Loan Balance

Interest

Secured term loan (a) due December 8, 2027

115,000

SOFR1 + 4.1%

123,500

SOFR1 + 4.1%

Secured revolving line of credit (b) due December 8, 2027

13,749

SOFR1 + 4.1%

8,067

SOFR1 + 4.1%

(a) Represents the principal amounts payable on our term loan, which is secured by liens on substantially all of the assets of the Company. The principal of the term loan is payable in quarterly installments with the remaining balance due on December 8, 2027.

On January 31, 2023, we executed a floating-to-fixed interest rate swap with First National Bank ("FNB") that had an ending notional amount of $74.0 million and a fixed interest rate of 4.1%, which matured on January 31, 2026. As of June 30, 2026, no interest rate swaps were outstanding, and all debt is subject to floating interest rates.

The Credit Agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. On November 6, 2024, the Company completed an amendment to its credit facility. The amendment modified certain financial covenants thresholds and reduced the amount available under the revolving line of credit. On June 11, 2026, the Company completed an amendment to its credit facility. The amendment modified certain definitions and financial covenants thresholds. The amendments were approved by the Company's Board of Directors, Executive Management, and the credit facility lenders.

As amended, the Credit Agreement requires us to comply with certain quarterly financial covenants including: (i) a minimum fixed charge coverage ratio ranging from 1.25:1.00 to 1.05:1.00 and (ii) a total leverage ratio not exceeding the ratio of 5.50:1.00 to 4.25:1.00 through maturity. The total leverage ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, (ii) provision for income taxes, if any, (iii) depreciation and amortization, (iv) non-cash charges, losses or expenses, including stock-based compensation, (v) non-recurring charges, losses or expenses including transaction and non-cash equity expense, (vi) fiscal 2026 losses, expenses, or non-cash charges arising from or related to the termination of a lease, (vii) cash restructuring charges, including termination costs, incurred during fiscal 2026, and (viii) up to $3.0 million of pro forma consolidated net Income attributable to material contract awards entered into following the amendment. We are in compliance with all loan covenants and restrictions as of June 30, 2026.

We are required to pay quarterly amortization payments, which commenced in December 2022. The annual amortization amount is $19.0 million for the fiscal year 2026, and $23.75 million for fiscal year 2027, with the remaining unpaid loan balance due at maturity in December 2027. The quarterly payments are equal installments. The outstanding principal balance on the secured term loan was $115.0 million as of June 30, 2026. We have satisfied the mandatory principal payments through December 2026 and partially satisfied the March 2027 payment.

In addition to quarterly payments of the outstanding indebtedness, the loan agreement also requires annual payments of a percentage of excess cash flow, as defined in the loan agreement. The loan agreement states that an excess cash flow recapture payment must be made equal to (a) 75% of the excess cash flow for the immediately preceding fiscal year in which indebtedness to consolidated EBITDA ratio is greater than or equal to 2.5:1; (b) 50% of the excess cash flow for the immediately preceding fiscal year in which the funded indebtedness to consolidated EBITDA Ratio is less than 2.5:1 but greater than or equal to 1.5:1; or (c) 0% of the excess cash flow for the immediately preceding fiscal year in which the funded indebtedness to consolidated EBITDA Ratio is less than 1.5:1. In addition, the Company must make additional mandatory prepayment of amounts outstanding based on proceeds received from asset sales and sales of certain equity securities or other indebtedness. Due to the voluntary prepayment of term debt, there was no excess cash flow payment required. For additional information regarding the schedule of future payment obligations, please refer to Note 10. Commitments and Contingencies.

(b) As amended, the secured revolving line of credit has a ceiling of up to $50.0 million; as of June 30, 2026, we had unused borrowing capacity of $5.0 million, which is net of outstanding letters of credit. Borrowing on the secured revolving line of credit is secured by liens on substantially all of the assets of the Company. The Company accessed funds from the secured revolving line of credit during the year, which had a $13.7 million outstanding balance at June 30, 2026. As part of the secured revolving line of credit, the lenders agreed to a sublimit of $5.0 million for letters of credit for the account of the Company, subject to applicable procedures.