Long-term debt consisted of the following:

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Scheduled principal payments on long-term debt at June 30, 2026, are summarized as follows:

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Bank Term Loan

The Company maintains a $13,000 term loan that matures in March 2029 and bears interest at a variable rate equal to one-month SOFR plus 2.10%. The loan requires monthly principal payments of $155, with any remaining principal due at maturity, and is secured by all business assets of the Company. The agreement requires, among other things, that we comply with a minimum fixed charge coverage ratio, a total cash flow leverage ratio, and restriction on individual business combinations in excess of specified limits, as defined in the agreement. The Company was in compliance with all debt covenants as of June 30, 2026 and December 31, 2025. Interest expense related to the bank term loan totaled approximately $131 and $196 for the three months ended June 30, 2026 and 2025, respectively, and totaled approximately $267 and $396 for the six months ended June 30, 2026 and 2025, respectively.

Subordinated Notes Payable

The Company has outstanding subordinated notes payable with principal due at maturity and interest payable quarterly through October 1, 2037. Interest on the notes is equal to the greater of (i) 14% of the principal balance, (ii) an amount determined based on a formula using average dentist compensation, or (iii) a formula based on total revenue. The effective interest rate during the three and six months ended June 30, 2026 and 2025 was 24.5%. Of the total subordinated notes payable, $2,012 is payable to various noteholders, including two related parties. These notes are secured by all business assets of the Company and are subordinated to the Company’s bank term loan and line of credit. The notes are also subject to significant prepayment restrictions; prepayment generally requires lender approval, except in limited circumstances involving the death of certain holders. The purchase agreement governing these notes also contains change-of-control provisions. Interest expense related to the subordinated debt agreements was approximately $133 and $139 for the three months ended June 30, 2026 and 2025, respectively, and totaled approximately $264 and $276 for the six months ended June 30, 2026 and 2025, respectively.

Notes Payable – Former Dentist Shareholder

The Company has issued notes payable to former dentist shareholders in connection with the redemption of shares occurring prior to the Company’s initial public offering. The notes are payable in equal monthly installments, with 17 payments remaining as of June 30, 2026. Interest is charged at the lesser of (i) 10% or (ii) 1% less than the prime rate published in The Wall Street Journal (Midwest Edition). Total principal payments made on these notes were $19 in the six months ended June 30, 2026. Interest expense related to notes payable to former dentist shareholders was approximately $1 and $2 for the three months ended June 30, 2026 and 2025, respectively, and was approximately $2 and $4 for the six months ended June 30, 2026 and 2025, respectively.