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Note 11 - Notes Payable and Long-term Debt
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 11.  Notes Payable and Long-Term Debt

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Notes payable and long-term debt consisted of the following for the periods indicated (in thousands):

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  September 30, 2023  

December 31, 2022

 

Revolving line of credit with a U.S. bank up to $27.780 million with interest at 9.190%, maturing the earlier of either 12/14/2023 or 11/16/2025 if the convertible debt remains in effect

  —  $25,000 

Revolving line of credit with a China bank up to $19.04 million with interest from 4.57% to 6.12%, maturing May 24, 2024

  13,413   13,102 

Credit facility with a China bank up to $26.65 million with interest of 4.45% ~ 6.6%, maturing June 6, 2027

  18,802   20,140 

Credit facility with a China bank up to $728 with interest of 2.7%, maturing November 23, 2023

  —   — 

Sub-total

  32,215   58,242 

Less debt issuance costs, net

  (892)  (1,168)

Grand total

  31,323   57,074 

Less current portion

  (31,323)  (57,074)

Non-current portion

 $—  $— 
       
       

Bank Acceptance Notes Payable

 

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Bank acceptance notes issued to vendors with a zero percent interest rate

 $14,383  $12,337 

 

The current portion of long-term debt is the amount payable within one year of the balance sheet date of September 30, 2023.

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Maturities of long-term debt are as follows for the future one-year periods ending September 30, 2023 (in thousands):

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Within one year

 $31,323 

Beyond one year

  — 

Total outstanding

 $31,323 

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On November 16, 2022, the Company entered into a Loan Security and Guarantee Agreement (the "Credit Facility") with CIT Northbridge Credit, LLC ("CIT"), as agent for secured parties. The Credit Facility provides the Company with a three-year, $27.78 million revolving line of credit. Borrowings under the Credit Facility will be used for working capital needs, capital expenditures, and other corporate purposes. The Company's obligations under the Credit Facility are secured by the Company's inventory, accounts receivable, instruments, equipment, intellectual property, and all business assets with the exception of real estate and all foreign assets. Borrowings will bear interest at a rate equal to the Secured Overnight Financing Rate (SOFR) plus 3.75%, while monthly average usage is less than 50% of the Credit Facility, otherwise SOFR plus 4.75%. The Credit Facility will become due at the earlier date of either November 16, 2025 or 91 days prior to the maturity of the Convertible Notes. As of September 30, 2023, $0 was outstanding under the Credit Facility. On August 16, 2023, the Company delivered a termination notice to CIT to terminate the Credit Facility. As a result of the Company's delivery of such termination notice, the Credit Facility will be terminated effective as of November 17, 2023.

 

On May 24, 2019, the Company’s China subsidiary, Global, entered into a five-year revolving credit line agreement, totaling 180,000,000 RMB (the "SPD Credit Line"), or approximately $25.4 million at that time, and a mortgage security agreement (the "Security Agreement"), with Shanghai Pudong Development Bank Co., Ltd ("SPD"). Borrowing under the SPD Credit Line will be used for general corporate and capital investment purposes, including the issuance of bank acceptance notes to Global’s vendors. Global may draw upon the SPD Credit Line on an as-needed basis at any time during the 5-year term; however, draws under the SPD Credit Line may become due and repayable to SPD at SPD’s discretion due to changes in Chinese government regulations and/or changes in Global’s financial and operational condition. Each draw will bear interest equal to SPD’s commercial banking interest rate effective on the day of the applicable draw. Global’s obligations under the SPD Credit Line will be secured by real property owned by Global and mortgaged to the Bank under the terms of the Security Agreement. As of September 30, 2023, $13.4 million was outstanding under the SPD Credit Line and the outstanding balance of bank acceptance notes issued to vendors was $10.8 million.

 

On June 7, 2022, the Company's China Subsidiary, Global, entered a security agreement with China Zheshang Bank in Ningbo City, China ("CZB") for a five-year credit line agreement, totaling 200,000,000 RMB (the "¥200M Credit Facility"), or approximately $29.9 million at that time. Global may draw upon the ¥200M Credit Facility between June 7, 2022 and June 6, 2027 ("¥200M Credit Period"). During the ¥200M Credit Period, Global may request to draw upon the ¥200M Credit Facility on an as-needed basis; however, draws under the ¥200M Credit Facility may become due and repayable to CZB at CZB’s discretion due to changes in Chinese government regulations and/or changes in Global’s financial and operational condition. Each draw will be facilitated by a separate credit agreement specifying the terms of each draw and will bear interest equal to CZB's commercial banking interest rate effective on the day of the applicable draw. Global’s obligations under the ¥200M Credit Facility will be secured by real property owned by Global and mortgaged to CZB under the terms of the Real Estate Security Agreement. As of September 30, 2023, $18.8 million was outstanding under the ¥200M Credit Facility and the outstanding balance of bank acceptance notes issued to vendors was $3.6 million.

 

As of September 30, 2023 and December 31, 2022, the Company had $42.2 million and $13.3 million of unused borrowing capacity, respectively.

 

As of September 30, 2023 and December 31, 2022, there was $9.3 million and $9.9 million of restricted cash, investments or security deposits associated with the loan facilities, respectively.

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