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Note 7 - Line of Credit and Long-term Debt | 12 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Long-term Debt [Text Block] |
7. | Line of credit and long-term debt
Line of credit In May 2021, the Company acquired Global Cooling and assumed a line of credit which bore interest at a floating rate equal to the 3-month LIBOR rate plus 5.50%. The maximum allowed on the line of credit was $5.0 million. The line was secured by substantially all assets of Global Cooling. In October 2021, the Company paid off the entirety of the outstanding balance on the line of credit and all related interest. Long-term debt In May 2021, the Company assumed three term notes in the acquisition of Global Cooling. At the time of acquisition, these notes carried aggregate outstanding principal balances of $4.4 million. These term notes bore interest at a floating rate equal to the 3-month LIBOR rate plus 6.50%. The term notes included financial covenants tied to the performance of Global Cooling. In October 2021, the Company entered into amended and restated term notes for all three term notes assumed in the acquisition of Global Cooling. Pursuant to the loan agreements, one lender provided two term notes in the amounts of $1.4 million and $1.4 million. A separate lender provided one term note in the amount of $1.8 million. All three term notes bear interest at a fixed rate of 4%, are interest-only with one balloon principal payment at maturity, and can be pre-paid without penalty at any time. All financial covenants included in the original agreements previously in effect were removed by the amended loan agreements. Long-term debt consisted of the following as of December 31, 2021 and 2020:
|  |  |  |  |  |  | December 31, |
(In thousands) | Maturity Date |  | Interest Rate |  |  | 2021 |  |  | 2020 |
2022 term loan 1 | Sep-24 |  |  | 4.0 | % |  | $ | 1,750 |  |  | $ | - |
2022 term loan 2 | Various |  |  | 4.0 | % |  |  | 2,813 |  |  |  | - |
Insurance premium financing | Apr-22 |  |  | 4.0 | % |  |  | 373 |  |  |  | - |
Paycheck Protection Program loan | May-22 |  |  | 1.0 | % |  |  | - |  |  |  | 295 |
Freezer equipment loan | Dec-25 |  |  | 5.7 | % |  |  | 612 |  |  |  | 365 |
Manufacturing equipment loans | Oct-25 |  |  | 5.7 | % |  |  | 355 |  |  |  | 439 |
Freezer installation loan | Various |  |  | 6.3 | % |  |  | 1,334 |  |  |  | 156 |
Other loans | Various |  | Various |  |  |  | 9 |  |  |  | 14 |
Total debt, excluding unamortized debt issuance costs |  |  |  |  |  |  | 7,246 |  |  |  | 1,269 |
Less: unamortized debt issuance costs |  |  |  |  |  |  | (31 | ) |  |  | - |
Total debt |  |  |  |  |  |  | 7,215 |  |  |  | 1,269 |
Less: current portion of debt |  |  |  |  |  |  | (862 | ) |  |  | (614 | )
Total long-term debt |  |  |  |  |  | $ | 6,353 |  |  | $ | 655 |
The 2022 term loans are secured by substantially all assets of Global Cooling. Equipment loans are secured by the financed equipment. As of December 31, 2021, the scheduled maturities of loans payable for each of the next five years and thereafter were as follows:
(In thousands) |  | Amount |
2022 |  | $ | 862 |
2023 |  |  | 813 |
2024 |  |  | 2,294 |
2025 |  |  | 543 |
2026 |  |  | 221 |
Thereafter |  |  | 2,513 |
Total debt, excluding unamortized debt issuance costs |  |  | 7,246 |
Less: unamortized debt issuance costs |  |  | (31 | )
Total debt |  | $ | 7,215 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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