XML 24 R12.htm IDEA: XBRL DOCUMENT v3.21.2
Equipment Notes Payable and Financial Arrangements
 8 Months Ended
Jul. 09, 2021
Debt Disclosure [Abstract]  
Equipment Notes Payable and Financial Arrangements

Note 6 – Equipment Notes Payable and Financial Arrangements:

 

The Company maintains a line of credit with Wells Fargo Bank, N.A. that extends through March 1, 2022. Under the terms of this line of credit, we may borrow up to $15,000 at an interest rate equal to the bank’s prime rate or LIBOR plus 2.0%. The line of credit has an unused commitment fee of 0.25% of the available loan amount. We borrowed $6,000 under this line of credit in $2,000 increments on December 2, 2020, April 27, 2021 and July 1, 2021, respectively, which remains outstanding as of July 9, 2021. We borrowed an additional $3,000 under this line of credit on July 19, 2021. The line of credit is presented under the current portion of non-current liabilities in the Condensed Consolidated Balance Sheets. The line of credit contains various covenants, the more significant of which require us to maintain a minimum tangible net worth, a minimum quick ratio, and a fixed charge coverage ratio. The Company was in violation of the minimum quick ratio covenant which was subsequently waived (per letter dated August 12, 2021). The Company was in compliance with all other covenants under the Wells Fargo Loan Agreements as of July 9, 2021.

 

On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A. (the “Original Wells Fargo Loan Agreement”) for up to $15,000 in equipment financing which was amended and expanded as detailed below. We subsequently entered into additional master collateral loan and security agreements with Wells Fargo Bank, N.A. on each of December 19, 2019, March 5, 2020, and April 17, 2020 (collectively the Original Wells Fargo Loan Agreement and the subsequent agreements referred to as the “Wells Fargo Loan Agreements”). Pursuant to the Wells Fargo Loan Agreements, we borrowed the following amounts:

 

Type and Number (1)  Date Funds Received  Rate   Original
Principal
Amount		  

Monthly Principal
Payment Amount

and Payment Start Date

 
Equipment Loan No. 01  12/26/18   4.13%  $7,500   $103    01/31/19 
Equipment Loan No. 02  04/23/19   3.98%   7,500    102    05/31/19 
Equipment Loan No. 03  12/23/19   3.70%   3,750    54    02/03/20 
Equipment Loan No. 04  03/06/20   3.29%   7,500    100    03/13/20 
Equipment Loan No. 05  04/17/20   3.68%   7,200    97    05/15/20 
Total          $33,450   $456      

 

  (1) Term: 7 years for 84 installment payments.

 

The Company was in violation of the minimum quick ratio covenant which was subsequently waived (per letter dated August 12, 2021).

 

The Company was in compliance with all other covenants under the Wells Fargo Loan Agreements as of July 9, 2021

 

 

   (unaudited)     
   July 9, 2021   October 30, 2020 
Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility.  $25,898   $29,122 
Less current portion of notes payable   (4,553)   (4,430)
Total long-term notes payable - equipment  $21,345   $24,692