Note 8 - Long-term Debt |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Notes to Financial Statements | |||
| Debt Disclosure [Text Block] |
On December 22, 2025, the Company executed a Sixth Loan Modification Agreement and Third Amended and Restated Credit Agreement (collectively, the “Loan Agreement”) increasing the credit limit from $15.0 million to $25.0 million and extending the maturity date of the credit facility (the “Credit Facility”) with First Hawaiian Bank (the "Bank") to December 31, 2030. The Loan Agreement provides revolving or term loan borrowing options. Interest on revolving borrowing is calculated based on First Hawaiian Bank’s minus 1.125 percentage points. Interest on term loan borrowing is fixed at First Hawaiian Bank’s commercial loan rates with interest rate swap options available. The Company has pledged approximately 30,000 square feet of commercial leased space in the Kapalua Resort as collateral for the Credit Facility. Net proceeds from the sale of any collateral are required to be repaid toward outstanding borrowings and will permanently reduce the Credit Facility’s revolving commitment amount. There are no commitment fees on the unused portion of the Credit Facility.
The terms of the Credit Facility include various representations, warranties, affirmative, negative and financial covenants and events of default customary for financings of this type. Financial covenants include a minimum liquidity (as defined) of $2.0 million, a maximum of $45.0 million in total liabilities, and a limitation of new indebtedness on collateralized properties without the prior written consent of the Bank.
The outstanding balance of the Credit Facility was $8,500,000 and $4,000,000 at June 30, 2026 and December 31, 2025, respectively. The Company received a covenant waiver from the bank for the quarter ended June 30, 2026.
In July 2024, the Company entered into a loan (the “2024 Equipment Loan”) to finance equipment purchases. The 2024 Equipment Loan has a principal amount of $338,720, bears a 0% interest rate per annum, and requires monthly payments of $7,057. The 2024 Equipment Loan matures in July 2028. The outstanding balance on the loan was approximately $0.2 million on each of June 30, 2026 and December 31, 2025.
In May 2026, the Company entered into a loan (the “2026 Equipment Loan”) to finance additional equipment purchases. The 2026 Equipment Loan has a principal amount of $137,343, bears a 10% interest rate per annum, and requires monthly payments of $3,483. The 2026 Equipment Loan matures in May 2030. The outstanding balance on the loan was approximately $0.1 million at June 30, 2026.
|