Notes Payable |
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| Notes Payable | 11. Notes Payable
Notes payable consists of short and long-term financing arrangements:
In May 2026, the Company entered into a credit agreement with Wells Fargo Bank, National Association, (“Credit Agreement”), providing for a $5,000 Term Loan. Borrowings under the Term Loan will bear interest, at a rate per annum equal to the Applicable Margin of 2.25% plus the Term Secured Overnight Financing Rate (“SOFR”) in effect on the first day of the applicable interest period. The interest period is a period commencing on a Federal Reserve Business Day and continuing for 1 month, 3 months, or 6 months as designated by the borrower from time to time, during which the future outstanding principal balance bears interest. The applicable margin is determined based on the Company’s total net leverage ratio (as defined in the agreement) and varies between tranches from 2.25% at a less than or equal to 2.00 to 1.00 net leverage ratio and up to 2.75% at a greater than 2.50 to 1.00 net leverage ratio. Interest is payable quarterly in arrears on the last day of each fiscal quarter, with respect to borrowings bearing interest. The Term Loan is subject to compliance with the restrictive covenants as defined in the agreement. The credit facility is guaranteed by certain material domestic subsidiaries of the Company and secured by substantially all of the personal property of the Company and such subsidiary guarantors. In connection with the Credit Agreement, the Company incurred $147 of total debt issuance costs. As of September 30, 2026, $127 of unamortized debt issuance costs remained. As of September 30, 2026 and December 31, 2025, the outstanding balance of the note payable was $4,748 and $0, respectively. During the three months ended September 30, 2026 and 2025, the Company paid principal of $125 and $0, respectively, and interest of $123 and $0, respectively. During the nine months ended September 30, 2026 and 2025, the Company paid principal of $125 and $0, respectively, and interest of $123 and $0, respectively.
On February 27, 2023, we entered into a promissory note with CrossFirst Bank in the amount of $278. The promissory note had a term of three (3) years with monthly payments of Eight Thousand Five Hundred Forty-Three ($8,543), including interest of 6.58%, beginning on March 27, 2023. Additionally, the promissory note was subject to certain financial covenants. The note payable was repaid in full in February 2026.
On November 1, 2022, as part of the acquisition of Allegiant Networks, we entered into a promissory note with the seller in the amount of $1.1 million. The loan agreement had a term of three (3) years with quarterly payments of Ninety-Eight Thousand Three Hundred Eighty-One ($98,381), including interest at 4.00%, beginning on April 1, 2023. As of September 30, 2026 and December 31, 2025, the outstanding balance of the related party note payable was $0 and $98, respectively. During the three months ended September 30, 2026 and 2025, the Company paid principal of $0 and $94, respectively, and interest of $0 and $4, respectively. During the nine months ended September 30, 2026 and 2025, the Company paid principal of $98 and $284, respectively, and interest of $0 and $10, respectively.
As of September 30, 2026, future principal payments are scheduled as follows (in thousands):
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