Note 8 - Debt |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
NOTE 8 – DEBT
Insurance Premium Financing
In March 2026, the Company entered into agreements with a third party to finance $23,457 in premiums on two insurance policies. These financing agreements have total monthly payments of $2,064, accrue interest at a rate of 10.99% and mature in the first quarter of 2027. As of June 30, 2026, there was $16,096 of principal outstanding under these financing agreements.
In July 2025, the Company entered into an agreement with a third party to finance a $364,692 premium on an insurance policy. This financing agreement has a monthly payment of $31,736, accrues interest at a rate of 8.74%, and matures in June 2026. As of June 30, 2026 and December 31, 2025, there was $0 and $185,656, respectively, of principal outstanding under this financing agreement.
In April 2025, the Company entered into an agreement with a third party to finance a $24,787 premium on an insurance policy. This financing agreement had a monthly payment amount of $2,170, accrued interest at a rate of 10.99% and matured in February 2026. As of June 30, 2026 and December 31, 2025, there was $0 and $4,283, respectively, of principal outstanding under this financing agreement.
In July 2024, the Company entered into an agreement with a third party to finance a $423,687 premium on an insurance policy. This financing agreement had a monthly payment of $40,467, accrued interest at a rate of 9.99%, and matured in June 2025. As of June 30, 2026 and December 31, 2025, there was $0 of principal outstanding under this financing agreement.
Interest expense on these financing agreements totaled $1,889 and $2,561 for the three months ended June 30, 2026 and 2025, respectively, and $5,339 and $7,554 for the six months ended June 30, 2026 and 2025, respectively.
Short-Term Debt
In June 2026, the Company entered into a revolving credit facility offered and administered by Shopify, Inc .and originated and financed by WebBank, an FDIC-insured bank. Under the terms of the agreement, the Company received aggregate proceeds of $50,000 in June 2026, which is being repaid through a daily remittance of 25% of the Company's gross sales processed through the Shopify platform. In lieu of a stated interest rate, the Company is charged a monthly fee, which may vary by each withdrawal, based on the average daily outstanding balance. As of June 30, 2026, the weighted average fee on the outstanding borrowings was 1.54%. Each withdrawal, together with accrued fees, is due in full no later than 18 months from its withdrawal date. As amounts are repaid, borrowing capacity is restored, and additional withdrawals may be requested.
As of June 30, 2026, the outstanding balance under the facility was $45,202, which is expected to be fully repaid within approximately six months. The fees, which are recognized as a component of interest expense, totaled $264 for the three and six months ended June 30, 2026.
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