ASSET-BASED LENDING FACILITY |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2026 | |||
| Debt Disclosure [Abstract] | |||
| ASSET-BASED LENDING FACILITY |
On May 19, 2026, Koil Energy entered into a Loan and Security Agreement with nFusion Capital Finance, LLC, pursuant to which nFusion will make revolving loans to the Company from time to time, in amounts determined by nFusion in its good faith business judgment, up to a maximum credit limit of $5,000. The facility is asset-based, and advances are subject to the weekly delivery of borrowing base certificates.
Obligations under the facility are secured by a first priority security interest in substantially all of Koil Energy’s assets, including accounts receivable, inventory, equipment, deposit accounts, general intangibles and other property, subject to customary exceptions and to nFusion’s agreement to subordinate its security interest in specific equipment to bona fide third-party equipment lenders under certain conditions.
Under the Loan and Security Agreement, nFusion may require Koil Energy to immediately repay any overadvance, may impose fees as set forth in the schedule to the agreement, and may accelerate all outstanding amounts and exercise remedies against the collateral upon the occurrence and continuation of events of default, including payment defaults, covenant defaults and other customary events of default.
Advances under the facility bear interest at a rate equal to the Prime Rate plus 4.75%. The Prime Rate is subject to a floor and shall at no time be less than 6.75% per annum, with interest accruing daily and payable monthly. In addition, nFusion charges a monthly fee equal to 0.25% of the average gross balance of Eligible Accounts of Borrower, which accrues daily and is payable in arrears on the last day of each month. As of June 30, 2026, the effective interest rate under the facility was 11.50%, before giving effect to the monthly fee.
The Company’s Synovus bank account serves as the depository account for the nFusion facility and had no balance as of June 30, 2026. Any future balance in this account will be classified as restricted cash while borrowings are outstanding under the nFusion facility. As of June 30, 2026, Koil Energy had $2,400 of outstanding borrowings with nFusion.
|