XML 23 R11.htm IDEA: XBRL DOCUMENT v3.23.3
Line of Credit and Long-term Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Line of Credit and Long-term Debt

5. LINE OF CREDIT AND LONG-TERM DEBT

The following table provides details for the carrying values of debt as of:

 

 

 

September 30, 2023

 

 

December 31, 2022

 

Term Loan - ("FCC Loan") - repayable by monthly principal payments of $164 and accrued interest at a rate of 8.93%; matures April 1, 2025

 

$

23,280

 

 

$

24,755

 

Term Loan - Pure Sunfarms - C$19.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount, interest rate of 9.20%; matures February, 2026

 

 

8,534

 

 

 

9,664

 

Term loan - Pure Sunfarms - C$25.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount starting June 30, 2021, interest rate of 9.20%; matures February, 2026

 

 

13,449

 

 

 

14,867

 

BDC Facility - Pure Sunfarms - non-revolving demand loan repayable by monthly principal payments of C$52 and accrued interest at a rate of 10.95%, matures December 31, 2031

 

 

3,832

 

 

 

4,181

 

Total

 

$

49,095

 

 

$

53,467

 

 

On March 13, 2023, the Company entered into a Note Modification Agreement (the “Modification”) for its line of credit ("Operating Loan"). The Modification eliminated the use of LIBOR as a basis to determine certain interest rates and transitioned to the Secured Overnight Financing Rate (“SOFR”) for such purposes. This Modification did not have a material effect on the Company's results of operations or its financial position. The Company’s Operating Loan had $4,000 amount drawn on the facility as of September 30, 2023 and December 31, 2022.

The carrying value of the assets and securities pledged as collateral for the FCC Loan as of September 30, 2023 and December 31, 2022 was $122,823 and $113,159, respectively.

The carrying value of the assets pledged as collateral for the Operating Loan as of September 30, 2023 and December 31, 2022 was $25,553 and $26,666, respectively.

The Pure Sunfarms line of credit had $0 and $3,529 outstanding as of September 30, 2023 and December 31, 2022, respectively. Pure Sunfarms had an outstanding letter of credit issued to BC Hydro against the revolving line of credit of C$0 and C$4,145 as of September 30, 2023 and December 31, 2022, respectively.

The Company is required to comply with financial covenants, measured either quarterly or annually depending on the covenant. The Company was in compliance with all its credit facility covenants as of September 30, 2023.

The weighted average annual interest rate on short-term borrowings as of September 30, 2023 and December 31, 2022 was 9.86% and 9.12%, respectively.

Accrued interest payable on all long-term debt as of September 30, 2023 and December 31, 2022 was $385 and $398, respectively, and these amounts are included in accrued liabilities in the Condensed Consolidated Statements of Financial Position.

The aggregate annual principal maturities of long-term debt for the remainder of 2023 and thereafter are as follows:

 

Remainder of 2023

 

$

1,660

 

2024

 

 

5,814

 

2025

 

 

24,668

 

2026

 

 

14,652

 

2027

 

 

460

 

Thereafter

 

 

1,841

 

Total

 

$

49,095