v3.25.4
Debt
 3 Months Ended
Aug. 02, 2025
Debt Disclosure [Abstract]  
Debt Debt
As of
Maturity Date
August 2, 2025May 3, 2025
Credit FacilityJune 9, 2028$170,000 $103,100 
Total debt$170,000 $103,100 
Balance Sheet classification:
Long-term borrowings$170,000 $103,100 
Total debt$170,000 $103,100 
Transactions
On June 10, 2024, the Company completed a series of Transactions, which together substantially deleveraged the Company’s Consolidated Balance Sheet.
In connection with the Transactions, the Company received gross proceeds of $95,000 of new equity capital, consisting of a $50,000 private investment led by Immersion Corporation and a $45,000 fully backstopped equity rights offering, resulting in approximately $85,500 of net cash proceeds after transaction costs. In addition, approximately $34,000 of outstanding principal and accrued interest under the Company’s term loan was converted into common stock. The Company also refinanced its revolving credit facility, providing access to a $325,000 facility maturing in 2028.
Credit Facility
In connection with the timing of the Company’s financial statement filings, the Company entered into a series of limited consent and waiver agreements with the lenders under its asset-based revolving credit facility (the “Credit Facility”) to extend certain financial reporting deadlines. These waivers related solely to the timing of the Company’s filings and did not arise from noncompliance with any financial covenants. The Investigation and related restatement of the Company’s previously issued financial statements have been completed.
On August 8, 2025, the Company and the administrative agent entered into a limited consent and waiver providing a 75-day extension of the applicable reporting deadlines to October 22, 2025, in exchange for a fee equal to 0.10% of the aggregate revolving commitments. On October 21, 2025, the Company exercised an additional 45-day extension option under the waiver, extending the reporting deadline to December 6, 2025, in exchange for an additional fee equal to 0.10% of the revolving commitments. On December 5, 2025, the Company entered into a Second Limited Consent and Waiver, further extending the reporting deadlines to January 20, 2026, in exchange for an additional fee equal to 0.10% of each consenting lender’s revolving commitment.
During the applicable extension periods, the Company was subject to certain customary conditions, including enhanced reporting requirements, periodic update calls with lenders, and a minimum excess availability requirement of $30,000. Failure to comply with these conditions would have constituted an event of default.
On June 10, 2024, the Company amended, restated and extended the maturity of its existing asset-based revolving A&R Credit Agreement with Bank of America, N.A., as administrative agent, collateral agent and swing line lender, and the other lenders party thereto, as amended and restated, the A&R Credit Agreement. Pursuant to the A&R Credit Agreement, the lenders committed to provide the Company with a four-year asset-based revolving credit facility with aggregate revolving commitments of up to $325 million and a maturity date of June 9, 2028.
Borrowings under the A&R Credit Facility may be used for general corporate purposes, including seasonal working capital needs. The Company has interest-only obligations under the A&R Credit Facility until maturity, at which time all outstanding principal is due and payable. Interest accrues, at the Company’s election, either (i) at a rate based on the Secured Overnight Financing Rate (“SOFR”), subject to a floor of 2.50%, plus an applicable margin of 3.50%, or (ii) at an alternate base rate, subject to a floor of 3.50%, plus an applicable margin of 2.50%. The applicable margins may be reduced by 0.25% upon achievement of certain financial performance thresholds, as defined in the A&R Credit Agreement.
The A&R Credit Agreement contains customary negative covenants and financial maintenance covenants, including minimum availability, a consolidated fixed charge coverage ratio, and a consolidated EBITDA requirement, each as defined in the agreement. The A&R Credit Facility is secured by substantially all of the Company’s inventory, accounts receivable and related assets, constituting an all-assets lien, subject to customary exclusions.
As of August 2, 2025, and as of the issuance date of the Company’s most recent Form 10-Q, the Company was in compliance with all covenants under the A&R Credit Facility.
Term Loan
On June 10, 2024, the Company’s existing Term Loan Credit Agreement (the "Term Loan"), dated June 7, 2022, with TopLids LendCo, LLC and Vital Fundco, LLC (the “Term Loan”), was terminated in connection with the conversion of approximately $34,000 of outstanding principal and accrued and unpaid interest into shares of the Company’s Common Stock (the “Term Loan Debt Conversion”). As a result of the conversion, the Term Loan and all related agreements were extinguished.
The Company recognized a loss on extinguishment of debt of $55,233 in connection with the Term Loan Debt Conversion, representing the excess of the fair value of the Common Stock issued over the net carrying amount of the Term Loan, including unamortized deferred financing costs. The conversion resulted in financing noncash activity totaling $86,755. See Note 6. Equity.
The Term Loan had an original principal amount of $30,000 and was scheduled to mature on April 7, 2025. Proceeds from the Term Loan were used for working capital and related fees and expenses.
Deferred Financing Costs
The debt issuance costs have been deferred and are presented as noted below in the condensed Consolidated Balance Sheets, and are subsequently amortized ratably over the term of the respective debt.
As of
Balance Sheet Location
Maturity Date/
Amortization Term
August 2, 2025May 3, 2025
Credit Facility - Other noncurrent assets
June 9, 2028$10,681 $11,597 
Total deferred financing costs
$10,681 $11,597 
Interest
The following table disaggregates interest expense:
13 weeks ended
August 2, 2025July 27, 2024
Interest Incurred
Credit Facility$2,839 $4,784 
Term Loan— 453 
Total Interest Incurred$2,839 $5,237 
Amortization of Deferred Financing Costs
Credit Facility$916 $2,267 
Term Loan— 150 
Total Amortization of Deferred Financing Costs$916 $2,417 
Interest income
$(10)$(36)
Total Interest Expense, net
$3,745 $7,618 
Cash interest paid during the 13 weeks ended August 2, 2025 and July 27, 2024 was $2,927 and $4,732, respectively.