BORROWINGS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| BORROWINGS | 8. BORROWINGS BMO Line of Credit In October 2024, the Company entered into a Loan and Security Agreement (the "Loan Agreement") with BMO Bank N.A. (in such capacity, "BMO"), pursuant to which BMO agrees to lend the Company up to $25.0 million on a one-year revolving line of credit to aid the Company in securing strategic ventures. In connection with the Loan Agreement, BMO issued a revolving line of credit promissory note (the "Revolving Note") and granted a lien on the cash collateral account specified in the Loan Agreement (the "Cash Collateral Account"). The revolving line of credit bears interest on the unpaid principal balance at an annual rate equal to the Secured Overnight Financing Rate, or SOFR rate, for a one-month interest period plus 1.00%, established by the Federal Reserve Bank of New York. The Company is obligated to pay certain commitment fees on undrawn amounts under the Loan Agreement in amounts specified in the Loan Agreement. The Loan Agreement and Revolving Note was originally scheduled to terminate on October 18, 2025, and loans thereunder may be borrowed, repaid, and reborrowed up to such date. In September 2025, the Company and BMO extended the term of the Loan Agreement and Revolving Note for an additional year, which will now terminate in October 2026. As of June 30, 2026, the Company had $9.5 million of outstanding standby letter of credits under the Revolving Note. As of June 30, 2026, the outstanding balance on the line of credit was $15.5 million. The total outstanding debt on the line of credit is included in Short-term debt, net on the consolidated balance sheets. The Loan Agreement is subject to limited affirmative covenants and negative covenants, including the requirement that the Company maintain cash in the Cash Collateral Account in an amount that is three percent greater than BMO's aggregate commitments under the Loan Agreement. As of June 30, 2026, the Company was in compliance with its debt covenants and continues to monitor ongoing compliance with the debt covenants. Bank of America Revolver On April 2, 2026, following the acquisition of TBHC, TBHC entered into a Sixth Amendment to Third Amended and Restated Credit Agreement (as the same has been amended from time to time, the “2023 Credit Agreement”) with Bank of America, N.A., as administrative agent and collateral agent, and lender, agrees to lend the Company up to $90.0 million. During the three and six months ended June 30, 2026, the Company borrowed $25.9 million and repaid $18.1 million under the 2023 Credit Agreement. As of June 30, 2026, the Company had $14.6 million in letters of credit outstanding under the 2023 Credit Agreements. For the three and six months ended June 30, 2026, the Company recorded interest expense of $1.0 million related to the 2023 Credit Agreement. The 2023 Credit facility matures on March 31, 2028 and bears interest at a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) Term SOFR plus 1.00%. The fee paid to the lenders on the unused portion of the 2023 Credit Agreement is 25 basis points when usage is greater than 50% of the total commitment amount; otherwise, the fee on the unused portion is 37.5 basis points per annum. Pursuant to the 2023 Credit Agreement, the Company entered into a pledge and security agreement with the administrative agent to the 2023 Credit Agreement, pledging its equity interests in TBHC. The Company has not guaranteed the obligations under the 2023 Credit Agreement or pledged any assets, other than the pledged equity interests in TBHC as collateral. Short-term Loan On June 29, 2026, the Company entered into a Promissory Note Agreement (the "Promissory Note") with The Container Store, Inc. ("TCS Inc."), pursuant to which the Company issued the Promissory Note for a total principal amount of $7.5 million. The Promissory Note matures on July 31, 2026 and bears interest at a rate of 8.00% per annum. Refer to Note 17—Subsequent Events for additional information on the Company relationship with TCS Inc. and information on the subsequent repayment of the Promissory Note.
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