XML 26 R15.htm IDEA: XBRL DOCUMENT

Long-Term Debt

3 Months Ended

Mar. 31, 2025

9. Long-Term Debt

Mortgage with East West Bank

Overview

On December 30, 2021, the Company purchased the Miami office building for approximately $6.8 million, and the Company entered into a mortgage with East West Bancorp, Inc. (“East West Bank”) for approximately $4 million to finance part of the purchase of the Miami office building as well as $338,000 to finance part of the build out of the Miami office building. As of March 31, 2025 and December 31, 2024, the Company’s outstanding balance of the mortgage was $4,205,000 and $4,228,000, respectively.

The Company’s obligations under the mortgage are secured by a lien on the Miami office building and the term of the loan is ten years. The repayment schedule will utilize a 30-year amortization period, with a balloon on the remaining amount due at the end of ten years. The interest rate is 3.6% for the first 7 years, and thereafter the interest rate shall be at the prime rate as reported by the Wall Street Journal, provided that the minimum interest rate on any term loan will not be less than 3.6%. As part of the agreement, the Company must maintain a debt service coverage ratio of 1.4 to 1. The loan is subject to a prepayment penalty over the first five years which is calculated as a percentage of the principal amount outstanding at the time of prepayment. This percentage is 5% in the first year and decreases by 1% each year thereafter, with the prepayment penalty ending after 5 years. As of March 31, 2025, the Company was in compliance with all of its covenants related to this agreement.

Remaining Payments

Future remaining annual minimum principal payments for the mortgage with East West Bank as of March 31, 2025 were as follows:

Year	Amount
2025	$	65,000
2026		91,000
2027		95,000
2028		98,000
2029		112,000
Thereafter		3,744,000
Total	$	4,205,000

The interest expense related to this mortgage was $38,000 and $39,000 for the three months ended March 31, 2025, and 2024, respectively. As of March 31, 2025, the interest rate for this mortgage was 3.6%.