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DEBT
 9 Months Ended
Sep. 25, 2022
Debt Disclosure [Abstract]  
Debt DEBT
 
On July 16, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”), maturing July 16, 2024, led by BMO, as lead administrative agent, lender, letters of credit issuer, and swing line lender. The Credit Agreement provides for the Revolving Facility permitting the Company to borrow funds from time to time in an aggregate amount up to $35 million. The Credit Agreement also provided for a term loan commitment (the “Term Loan”) permitting the Company to borrow funds from time to time in an aggregate amount not to exceed $30 million with principal payable quarterly, based on an annual percentage of the original principal amount as defined in the Credit Agreement, all of which has been funded. The Company may from time to time, with a maximum of two, request an increase in the aggregate Term Loan by $40 million, with minimum increases of $10 million. The Company’s obligations under the Credit Agreement are secured by a first priority security interest in substantially all tangible and intangible property of the Company and its subsidiaries. The Credit Agreement bore interest either at the Base Rate plus the Applicable Margin or LIBOR plus the Applicable Margin through August 17, 2022 (as such terms are defined in the Credit Agreement). The Company also pays an unused commitment fee on the daily average unused amount of Revolving Facility and Term Loan.

As discussed in Note 2, on August 18, 2022, the Company entered into an amendment to the Credit Agreement (as amended, the "Amended Credit Agreement") with BMO to temporarily increase the Revolving Facility to $60 million for a period of ninety days and change the interest rate component from LIBOR to the Secured Overnight Financing Rate ("SOFR").

The Amended Credit Agreement contains customary affirmative and negative covenants. The Company is subject to a maximum Leverage Ratio and a minimum Fixed Charge Coverage Ratio as defined in the Amended Credit Agreement. The Company was in compliance with these covenants as of September 25, 2022.

On February 8, 2021, the Company borrowed $3.8 million on the Revolving Facility in conjunction with the closing of the Momentum acquisition. On March 21, 2022, the Company paid down the balance on the existing Term Loan and a portion of the Revolving Facility using the proceeds from the sale of InStaff (See Note 4).
Letter of Credit

In March 2020, in conjunction with the 2020 EdgeRock acquisition, the Company entered into a standby letter of credit arrangement, which expires December 31, 2024, for purposes of protecting a lessor against default on lease payments. As of September 25, 2022, the Company had a maximum financial exposure from this standby letter of credit totaling $0.1 million, all of which is considered usage against the Revolving Facility. The Company has no history of default, nor is it aware of circumstances that would require it to perform under any of these arrangements and believes that the resolution of any disputes thereunder that might arise in the future would not materially affect the Company’s consolidated financial statements. Accordingly, no liability has been recorded in respect to these arrangements as of September 25, 2022.

Line of Credit

At September 25, 2022 and December 26, 2021, $27.1 million and $12.8 million, respectively, was outstanding on the revolving facilities. Average daily balance for the thirteen week periods ended September 25, 2022 and September 26, 2021 was $21.1 million and $12.3 million, respectively. Average daily balance for the thirty-nine week periods ended September 25, 2022 and September 26, 2021 was $16.7 million and $9.2 million, respectively.

Borrowings under the revolving facilities consisted of and bore interest at:
September 25,
2022		December 26,
2021
Base Rate$13,094,752 6.75 %$2,780,854 4.50 %
SOFR14,000,000 4.40 %— — %
LIBOR— — 10,000,000 2.35 %
Total$27,094,752 $12,780,854 


Long-Term Debt

Long-term debt consisted of and bore interest at:
September 25,
2022		December 26,
2021
Base Rate$— — %$2,237,500 2.35 %
Fixed rate— — %24,625,000 2.39 %
Long-term debt$— $26,862,500 

Cash Flow Hedge

On March 21, 2022, the Company paid down the balance on the existing Term Loan containing the $25.0 million notional amount which cancelled the pay-fixed/receive-floating interest rate swap agreement. The unrealized gains or losses associated with the change in the fair value of the effective portion of the hedging instrument was recorded in accumulated other comprehensive income or loss. The Company reclassified the interest rate swap from accumulated other comprehensive gain or loss against interest expense in the same period in which the hedge transaction affected earnings. As of September 25, 2022, these amounts have been removed from Other long-term assets (See Note 9).