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Notes and Lines of Credit
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Notes and Lines of Credit

(6) Notes and Lines of Credit

 

 Notes and lines of credit consist of the following:

 

      As of March 31, 2022  As of December 31, 2021
   Rate  Available  Outstanding Balance  Available  Outstanding Balance
Strandler, LLC (1)   4.00%   1,000    1,000    n/a    n/a 
Beachcorp, LLC (1)   5.25%   n/a    n/a    1,000    1,000 
Beachcorp, LLC (2)   4.00%   4,972    3,709    3,753    3,365 

 

 

 

Related party interest summary:

 

               
   Three Months Ended March 31, 
   2022   2021 
Interest expense, related parties  $39   $131 
Accrued interest expense, related parties   16   $36 

 

1)On January 28, 2022 the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the previously existing Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%, and it matures on March 31, 2024. Strandler, LLC is also an affiliate of Bradford T. Whitmore.

 

2)On January 28, 2022 the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver Facility to March 31, 2024.

 

On January 28, 2022 the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility is $4,000, with a borrowing base consisting of up to 50% of the value of qualified inventory of the Company. The interest rate for the Inventory Revolver is at the prime rate plus 0.75%, and it matures on March 31, 2024. The Company is finalizing the documentation for this loan and, as such, has yet to draw any funds from it.

 

 

Beachcorp, LLC and Strandler, LLC are affiliates of Mr. Bradford T. Whitmore, who beneficially owns a majority of the Company’s common stock and is the brother of Ms. R. Janet Whitmore, a director of the Company and the chair of the Company’s board of directors. The A/R Revolver Facility, the Inventory Facility and the New Term Loan are all secured by all the unencumbered assets of the Company and subordinated to the Company’s credit facility with Libertyville Bank & Trust. 

Since July 2014, we have maintained a bank-issued letter of credit for up to $30 in borrowings to support our obligations under our Romeoville, Illinois facility lease agreement. No borrowings have been incurred under this promissory note. On December 21, 2021, Libertyville issued a letter of credit for up to $500 in borrowings to support our obligations under our newly leased manufacturing and warehouse space in Bolingbrook, Illinois. For both letters of credit, interest on drawn balances will be at the prime rate plus 1%. We expect to renew these agreements annually, as the respective leases require. These letters of credit are secured by all the unencumbered assets of the Company, and have superior collateral rights to those credit facilities with Beachcorp, LLC and Strandler, LLC. Because there were no amounts outstanding on either letter of credit at any time during 2022 or 2021, we have recorded no related liability on our balance sheet.