Revolving Credit Facility |
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| Revolving Credit Facility | Note 8: Revolving Credit Facility
New Credit Facility
On October 1, 2025, the Company entered into an asset-based revolving credit facility (the “New Revolving Credit Facility”) with Bank of America, which refinanced and replaced its prior asset-based revolving credit facility with White Oak Commercial Finance, LLC. The Revolving Credit Facility provides for borrowings of up to $120.0 million, subject to a borrowing base, and matures on October 1, 2030.
Borrowings under the Revolving Credit Facility bear interest at the 30-day SOFR rate, subject to a floor of 2.00%, plus an applicable margin of 1.50% through March 31, 2026 and 1.625% thereafter. The 30-day SOFR rate as of June 30, 2026 was 3.61%. The Company also pays a commitment fee of 0.15% per annum on unused availability. Commitment fees incurred during the year ended June 30, 2026 and 2025 were $0.12 million and $0.22 million, respectively. Included in interest expense for the year ended June 30, 2026, is $1.6 million related to the accelerated amortization of unamortized deferred financing costs associated with the prior revolving credit facility that was refinanced and replaced.
Availability under the Revolving Credit Facility is based on eligible accounts receivable and inventory. As of June 30, 2026, availability was approximately $45.7 million, with outstanding borrowings of approximately $74.3 million.
The Revolving Credit Facility contains customary affirmative and negative covenants, including limitations on additional indebtedness, liens, dividends, and certain investments, and requires the maintenance of a fixed charge coverage ratio of at least 1.0 to 1.0 on a trailing twelve-month basis, as defined in the credit agreement. The facility is secured by a first-priority security interest in substantially all of the Company’s and its subsidiaries’ assets.
The Company was in compliance with all applicable covenants under the Revolving Credit Facility as of June 30, 2026.
Letters of Credit
The Revolving Credit Facility permits the issuance of letters of credit, which reduces availability under the borrowing base. As of June 30, 2026, the Company had letters of credit outstanding totaling $0.75 million.
Prior Credit Facility
The Company’s prior asset-based revolving credit facility with White Oak Commercial Finance, LLC (the “Prior Revolving Credit Facility”) provided for borrowings of up to $120 million, subject to a borrowing base, and was scheduled to mature on December 21, 2026. Borrowings under the Prior Revolving Credit Facility bore interest at the 30-day SOFR rate, subject to a floor of 2.00%, plus a margin ranging from 4.00% to 4.25%.
The Prior Revolving Credit Facility was terminated and fully repaid on October 1, 2025; therefore, as of June 30, 2026, no amounts were outstanding and an effective interest rate was not applicable.
During the years ended June 30, 2026, and 2025, the Company had interest expenses of $4.9 million and $7.2 million, respectively, and amortization of deferred finance costs of $2.1 million and $1.4 million, respectively.
Recurring amortization of deferred financing costs was approximately $0.6 million and $1.4 million for the years ended June 30, 2026, and 2025, respectively. In addition, interest expense for the year ended June 30, 2026, included approximately $1.6 million of accelerated amortization of deferred financing costs related to the early refinancing and termination of the prior revolving credit facility on October 1, 2025.
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