Note 5 - Lines of Credit |
12 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
Note 5. Lines of Credit
Loan Agreement
On June 30, 2026, Integrated BioPharma, Inc. (the "Company") and Manhattan Drug Company, Inc., a wholly owned subsidiary of the Company (collectively, the "Borrower"), entered into an Amendment to Loan Documents (the "First Amendment") with PNC Bank, National Association ("PNC") amending certain loan documents related to the Loan Agreement entered into with PNC dated as of April 15, 2025 (the “Loan Agreement”). The First Amendment extends the expiration date of the existing committed revolving line of credit to April 14, 2027 (the "Expiration Date"). The revolving line of credit continues to provide for advances in an aggregate principal amount outstanding at any time not to exceed $4,000. The Borrower also entered into a Convertible Line of Credit Note (Daily SOFR) payable to the order of PNC in an amount in the aggregate at any time outstanding not to exceed $250 (the "Convertible ELOC"). Advances under the Convertible ELOC will be used for the purchase of equipment and/or vehicles. The First Amendment terminated the Convertible Equipment Line of Credit Note (Daily SOFR), dated as of April 15, 2025, by the Borrower and payable to the order of PNC Bank in the amount not to exceed $500, which had matured and is of no further force or effect and has been replaced by the Convertible ELOC.
The Loan Agreement provides a committed revolving line of credit under which the Company may request, and PNC will make advances to the Company from time to time until the Expiration Date, in an aggregate amount outstanding at any time not to exceed $4,000.
The Line of Credit bears interest at a rate per annum which is equal to the sum of (A) Daily one-month plus (B) 250 basis points (2.50%). Accrued interest will be due and payable on the same day of each month, beginning with the payment due on May 15, 2025. The outstanding principal balance and any accrued but unpaid interest shall be due and payable on the Expiration Date.
Prior to the conversion date under the Convertible ELOC (the "Conversion Date”), amounts outstanding under the Convertible ELOC will bear interest at a rate per annum (the "Daily Rate”) equal to the sum of (i) daily one-month SOFR plus (ii) 250 basis points (2.50%), and from and after the Conversion Date, amounts outstanding under the Convertible ELOC will bear interest for the remaining term at either (i) a rate per annum equal to the Daily Rate or (ii) a fixed rate of interest per annum as offered to the Borrower by the Bank in its sole discretion and agreed upon in writing between the Borrower and PNC.
As of June 30, 2026, the Company did not meet its Fixed Charge Coverage Ratio, as defined in the Loan Agreement, of 1.10 to 1.0 and has requested a waiver from PNC for this default which it expects to receive. As of June 30, 2026 and 2025, the Company had no debt outstanding under its Lines of Credit.
The Company also entered into a Reimbursement Agreement for Standby and Commercial Letter(s) of Credit whereby, from time to time, the Borrower may request the issuance of one or more letters of credit (each a "Credit"). The Credit bears interest at the same rate as the Line of Credit under the Loan Agreement as described above.
In addition, in connection with the Loan Agreement, the Company and MDC (collectively, the "Grantors") each entered into a Security Agreement with PNC, pursuant to which each of the Grantors assigned and granted to PNC, as secured party, a continuing lien on and security interest in all right, title and interest of such Grantor in, to, and under all of the assets of such Grantor. |