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Note 12 - Debt

6 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

12.

DEBT

In connection with the acquisition of Genasys Spain the Company assumed certain debts of Genasys Spain. The carrying value of the acquired debt approximates fair value. The balances of the acquired debt consist of loans with governmental agencies as of

March 31, 2021.

Loans with governmental agencies represent interest free debt granted by ministries within Spain for the purpose of stimulating economic development and promoting research and development. Loans with governmental agencies as of

March 31, 2021

are as follows:

Agency	Due Date		Principal
Ministry of Economy and Competitiveness	February 2, 2022		$	18
Ministry of Economy and Competitiveness	February 2, 2024			282		(a)
			$	300

(a) This loan is secured by $282 of cash pledged as collateral by Genasys Spain, which is the current balance of the loan. This amount is included in restricted cash at March 31, 2021. The Company expects the Ministry of Economy and Competitiveness to declare the terms of the loan satisfied within the next twelve months and that the outstanding balance of the loan will be paid in full during the next twelve months. Accordingly, this has been included in the current portion of notes payable as of March 31, 2021.

The following is a schedule of future annual payments as of

March 31, 2021:

2022		$	300
2023			-
Total		$	300

Revolving line of credit

On

March 8, 2021,

the Company entered into an agreement with MUFG Union Bank, N.A. for a

$10

million revolving line of credit. Outstanding balances on the revolving line of credit bear interest at a per annum rate equal to the London Interbank Offered Rate (“LIBOR”) plus

2.25%.

The agreement contains a provision for determining an alternative interest rate index in the event the LIBOR rate is

no

longer available. The agreement contains standard covenants, including affirmative financial covenants, such as the maintenance of a short-term liquidity ratio and a senior leverage ratio, in addition to negative covenants which limit the incurrence of additional indebtedness, loans and equity investments, disposition of assets, mergers and consolidations and other matters customarily restricted in such agreements. The maturity date of this revolving line of credit is

March 31, 2023.

As of

March 31, 2021,

there were

no

borrowings on the revolving line of credit. The Company incurred and capitalized

$38

of issuance costs related to this revolving line of credit. These issuance costs have and will be amortized on a straight-line basis over the term of the loan.

X

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ 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

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- References

No definition available.

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