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Notes Payable and Lease Obligations

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Notes Payable and Lease Obligations

Note 9 - Notes Payable and Lease Obligations

Long Term Debt

		December 31,				December 31,
		2020				2019
(In thousands)
Paycheck Protection Program Loan		$	1,035			$	-
Less current portion of notes payable and other long-term debt			(463	)			-
Notes payable and other long-term debt		$	572			$	-

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (“PPP”), the initiative provides federally guaranteed loans to small businesses. These loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. On April 17, 2020, the Company received a $1.0 million loan under the PPP with a maturity date of April 17, 2022 and an annual interest rate of 1.00%. The loan will be repaid in 12 monthly consecutive interest and principal payments and one balloon payment of approximately $351,000, commencing May 1, 2021. While the Company believes a significant portion of the loan will be forgiven, the Company has not received any notification, if any, of the loan amount will be forgiven.

Unison Revolving Line of Credit

The Company has a revolving line of credit (“LOC”) agreement which matures on April 12, 2022. The LOC provides for $75,080 in working capital. The interest rate is at the Wall Street Journal prime rate plus 1.50% and is adjusted daily. Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due upon maturity. As of December 31, 2020 and 2019, the effective interest rate was 4.75% and 6.25%, respectively. The LOC is collateralized by all the business assets of ICS. As of December 31, 2020 and 2019, there were no amounts outstanding under this LOC.

Lease Obligations

We have operating and finance leases for corporate offices, other regional offices, and certain equipment. Our leases have remaining lease terms of 1 year to 15 years, some of which include multiple options to extend the leases for up to 5 years each.

The components of lease expense were as follows (in thousands):

		Year ended				Year ended
		December 31, 2020				December 31, 2019
Operating lease cost		$	464			$	469
Finance lease cost
Amortization of assets			8				9
Interest on finance lease obligations			5				7
Variable lease cost			-				-
Total net lease cost		$	477			$	485

Included in the table above, is approximately $0.3 million for the year ended December 31, 2020, respectively, of operating lease cost for our corporate headquarters. This space is being leased from The Move, LLC. Our CEO and President, each a related party to WFCF, have a 24.3% jointly-held ownership interest in The Move, LLC.

Rent and lease expense for each of the years ended December 31, 2020 and 2019 was $0.6 million.

Supplemental balance sheet information related to leases was as follows (in thousands):

Supplement balance sheet info:

		December 31, 2020												December 31, 2019
Operating leases:		Related Party				Other				Total				Related Party				Other				Total
Operating lease ROU assets		$	2,755			$	238			$	2,993			$	2,933			$	314			$	3,247

Current operating lease liabilities			179				89				268				158				81				239
Noncurrent operating lease liabilities			3,079				178				3,257				3,260				266				3,526
Total operating lease liabilities		$	3,258			$	267			$	3,525			$	3,418			$	347			$	3,765

Finance leases:		December 31, 2020				December 31, 2019
Right of use asset, at cost		$	67			$	43
Accumulated amortization			(30	)			(22	)
Right of use asset, net		$	37			$	21

Current obligations of finance leases		$	13			$	8
Finance leases, net of current obligations			31				21
Total finance lease liabilities		$	44			$	29

Weighted average remaining lease term (in years):
Operating leases			10.0				11.0
Finance leases			3.7				3.0

Weighted average discount rate:
Operating leases			5.8	%			5.8	%
Finance leases			13.0	%			20.8	%

Supplemental cash flow and other information related to leases was as follows (in thousands):

		Year ended				Year ended
		December 31, 2020				December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	449			$	430
Operating cash flows from finance leases		$	5			$	7
Financing cash flows from finance leases		$	8			$	7

Right of use assets obtained in exchange for lease liabilities:
Operating leases		$	3,531			$	3,513

Maturities of lease liabilities were as follows (in thousands):

Years Ending December 31st,		Operating Leases				Finance Leases
2021		$	462			$	18
2022			466				15
2023			461				10
2024			407				5
2025			405				4
Thereafter			2,495				-
Total lease payments			4,696				52
Less amount representing interest			(1,171	)			(8	)
Total lease obligations			3,525				44
Less current portion			(268	)			(13	)
Long-term lease obligations		$	3,257			$	31