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Note 7 - Debt Obligations
 9 Months Ended
Sep. 29, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 7 — Debt Obligations

 

Revolving Line of Credit

 

As of September 29, 2024 and December 31, 2023, the Company had $20.0 million of revolving debt outstanding with an interest rate of 8.50% per annum and 9.00% per annum, respectively. Heritage Bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the agreement. The Company was in compliance with all loan covenants under the agreement as of the end of the current reporting period. Related interest expenses and annual facility fees recognized were $149 thousand and $205 thousand for the three and nine months ended September 29, 2024, respectively and $30 thousand and $92 thousand for the three and nine months ended October 1, 2023, respectively.

 

Financing Arrangements

 

The amount of assets, net purchased through financing arrangements on the condensed consolidated balance sheet were $3.2 million and $1.0 million as of  September 29, 2024 and October 1, 2023, respectively. The financed assets consist primarily of tooling for performance under revenue contracts with customers, with smaller amounts related to IT infrastructure components. The corresponding note payable amount for these financing arrangements was $3.1 million and $1.0 million as of September 29, 2024 and October 1, 2023, respectively. Payments related to financing arrangements were $0.4 million and $0.9 million for the three and nine months ended September 29, 2024, respectively, and $0.2 million and $0.5 million for the three and nine months ended October 1, 2023, respectively. The Company's outstanding financing arrangements as of  September 29, 2024 have remaining terms of 0.27 years to 2.57 years, with a weighted average remaining term of 1.91 years. Stated interest rates for its financing arrangements outstanding as of  September 29, 2024 range from 6.75% to 9.89%, with a weighted average interest rate of 8.89%. The Company's outstanding financing arrangements as of  October 1, 2023 had remaining terms of 0.92 years to 2.46 years, with a weighted average remaining term of 1.70 years. Stated interest rates for its financing arrangements outstanding as of  October 1, 2023 ranged from 3.75% to 9.89%, with a weighted average interest rate of 6.93%.

 

The following table provides the details of future payments for assets purchased through financing arrangements as of  September 29, 2024 (in thousands):

 

  

Financing Arrangements

 

2024 (remaining period)

 $528 

2025

  1,852 

2026

  680 

2027

  340 

Total payments

  3,400 

Less: Interest

  (288)

Present value of financing arrangements

 $3,112