XML 28 R17.htm IDEA: XBRL DOCUMENT v3.22.0.1
Note 11 - Debt
 3 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Debt Disclosure [Text Block]

11. DEBT

 

In connection with the acquisition of Genasys Spain the Company acquired 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 December 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 December 31, 2021 are as follows:

 

Agency

Project Name

 

Principal

  

Ministry of Economy and Competitiveness

INNPACTO 1 "eSalud"

 $17  

Ministry of Economy and Competitiveness

INNPACTO 3 "eSalud"

  273 

(a)

   $290  

 

 

(a)

This loan is secured by $273 of cash pledged as collateral by Genasys Spain, which is the current balance of the loan. This amount is included in restricted cash at December 31, 2021. The Company expects the Ministry of Economy and Competitiveness to declare the terms of the loan satisfied within fiscal 2022 and that the outstanding balance of the loan will be paid in full during fiscal 2022. Accordingly, this has been included in the current portion of notes payable as of December 31, 2021.

 

The following is a schedule of future annual payments as of December 31, 2021:

 

2022

 $290 

Total

 $290 

 

The changes in the carrying amount of debt for the three months ended December 31, 2021, are as follows:

 

Balance as of September 30, 2021

 $296 

Payments

  - 

Currency translation

  (6)

Balance as of December 31, 2021

 $290 

 

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 December 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.