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Long Term Debt | 9 Months Ended
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Jun. 30, 2022
Debt Disclosure [Abstract] |
Long Term Debt | Note 9: Long-Term Debt The following table details the Company's long-term debt as of June 30, 2022 and September 30, 2021 (in $000’s):
|  | June 30, 2022 |  |  | September 30, 2021 |
Bank of America Revolver Loan |  | $ | 7,308 |  |  | $ | — |
Encina Business Credit Revolver Loan |  |  | — |  |  |  | 12,735 |
Texas Capital Bank Revolver Loan |  |  | 9,155 |  |  |  | 8,794 |
Fifth-Third Bank Revolver |  |  | 20,564 |  |  |  | — |
Fifth-Third Bank Term Loan |  |  | 3,292 |  |  |  | — |
Fifth-Third Bank Term Loan |  |  | 4,000 |  |  |  | — |
Fifth-Third Bank Special Advance Term Loan |  |  | 1,000 |  |  |  | — |
Encina Business Credit Term Loan |  |  | — |  |  |  | 1,319 |
Note Payable to the Sellers of Kinetic |  |  | 3,000 |  |  |  | — |
Note Payable to the Sellers of Vintage Stock |  |  | — |  |  |  | 4,200 |
Note #3 Payable to Banc of America Leasing & Capital LLC |  |  | 895 |  |  |  | 1,320 |
Note #4 Payable to Banc of America Leasing & Capital LLC |  |  | 275 |  |  |  | 406 |
Note #5 Payable to Banc of America Leasing & Capital LLC |  |  | 1,553 |  |  |  | 1,985 |
Note #6 Payable to Banc of America Leasing & Capital LLC |  |  | 508 |  |  |  | 618 |
Note #7 Payable to Banc of America Leasing & Capital LLC |  |  | 3,689 |  |  |  | 4,121 |
Note #8 Payable to Banc of America Leasing & Capital LLC |  |  | 2,612 |  |  |  | 2,943 |
Note #9 Payable to Banc of America Leasing & Capital LLC |  |  | 5,046 |  |  |  | — |
Note Payable to Extruded Fibers |  |  | — |  |  |  | 700 |
Note Payable to the Sellers of Precision Marshall |  |  | 2,500 |  |  |  | 2,500 |
Note Payable to Store Capital Acquisitions, LLC |  |  | 9,181 |  |  |  | 9,209 |
Note payable to individuals, interest at 10-11% per annum, payable on a 90 day written notice, unsecured |  |  | 207 |  |  |  | 207 |
Note payable to individual, interest at 10% per annum, payable on a 90 day written notice, unsecured |  |  | 500 |  |  |  | 500 |
Note payable to individual, noninterest bearing, monthly payments of $19 through March 2023 |  |  | 224 |  |  |  | 472 |
Note payable to individuals, interest at 7% per annum, unsecured |  |  | 198 |  |  |  | 198 |
Note payable RSSI/(VSSS) |  |  | 130 |  |  |  | 130 |
Note Payable to JCM Holdings |  |  | 1,701 |  |  |  | 1,833 |
Total notes payable |  |  | 77,538 |  |  |  | 54,190 |
Less unamortized debt issuance costs |  |  | (645 | ) |  |  | (576 | )
Net amount |  |  | 76,893 |  |  |  | 53,614 |
Less current portion |  |  | (18,418 | ) |  |  | (16,055 | )
Total long-term debt |  | $ | 58,475 |  |  | $ | 37,559 |
Future maturities of long-term debt at June 30, 2022, are as follows which does not include related party debt separately stated (in $000’s):
Twelve months ending June 30, |  |  |
2023 |  | $ | 18,418 |
2024 |  |  | 14,046 |
2025 |  |  | 4,362 |
2026 |  |  | 3,559 |
2027 |  |  | 26,708 |
Thereafter |  |  | 10,445 |
Total future maturities of long-term debt |  | $ | 77,538 |
Bank of America Revolver Loan On January 31, 2020, Marquis entered into an amended $25.0 million revolving credit agreement (“BofA Revolver”) with Bank of America Corporation (“BofA”). The BofA Revolver is a five-year, asset-based facility that is secured by substantially all of Marquis’ assets. Availability under the BofA Revolver is subject to a monthly borrowing base calculation. Marquis’ ability to borrow under the BofA Revolver is subject to the satisfaction of certain conditions, including meeting all loan covenants under the credit agreement with BofA. As of June 30, 2022, the outstanding balance was approximately $7.3 million. Loans with Encina Business Credit, LLC On July 14, 2020, Precision Marshall entered into a Loan and Security Agreement (the “Loan Agreement”) with Encina Business Credit, LLC, as Agent (the “Agent”). The Loan Agreement provides for secured revolving loans (the “Encina Revolver Loans”) in a principal amount not to exceed the lesser of (i) $23.5 million and (ii) a borrowing base equal to the sum of (a) 85% of Precision's eligible accounts receivable, plus (b) 85% of Precision's eligible inventory, subject to an eligible inventory sublimit that begins at $14.0 million and declines to $12.0 million during the term of the Loan Agreement, minus (c) customary reserves. The Encina Revolver Loans mature on July 14, 2023. On January 20, 2022, the Precision Marshall refinanced these loans with Fifth-Third Bank (see below). The refinanced credit facility, totaling $29 million, is comprised of $23.0 million in revolving credit, $3.5 million in machinery and equipment (“M&E”) lending, and $2.5 million for capital expenditure (“Capex”) lending. Loan with Fifth Third Bank On January 20, 2022, Precision Marshall refinanced its Encina Business Credit loans with Fifth Third Bank (see above), and the balance outstanding was repaid. The refinanced credit facility, totaling $29 million, is comprised of $23.0 million in revolving credit, $3.5 million in M&E lending, and $2.5 million for capital Capex lending. Advances under the new credit facility will bear interest at the 30-day SOFR plus 200 basis points for lending under the revolving facility, and 30-day SOFR plus 225 basis points for M&E and Capex lending (Effective December 31, 2021, SOFR replaced the USD LIBOR for most financial benchmarking). The refinancing of the Borrower’s existing credit facility reduces interest costs and improves the availability and liquidity of funds by approximately $3.0 million at the close. The facility terminates on January 20, 2027, unless terminated earlier in accordance with its terms. In connection with the acquisition of Kinetic (see Note 3), the existing revolving facility was amended to add Kinetic as a borrower. In addition, two additional term loans were executed to fund the purchase of Kinetic. Approximately $6.0 million was drawn from the revolving facility, and the term loans were opened in the amounts of $4.0 million and $1.0 million, respectively. The $4.0 million term loan, which matures on January 20, 2027, carries the same terms for M&E term lending as stated above. The $1.0 million term loan, which matures on June 28, 2025, is a “Special Advance Term Loan”, and bears interest at SOFR plus 375 basis points. As of June 30, 2022, the outstanding balance on the revolving loan was approximately $20.6 million, and the outstanding balance on the original term note was approximately $3.3 million. As of June 30, 2022, the outstanding balance on the two term loans to fund the Kinetic acquisition were $4.0 million and $1.0 million, respectively. Texas Capital Bank Revolver Loan On November 3, 2016, Vintage Stock entered into an amended $12.0 million credit agreement with Texas Capital Bank (“TCB Revolver”). The TCB Revolver is a five-year, asset-based facility that is secured by substantially all of Vintage Stock’s assets. Availability under the TCB Revolver is subject to a monthly borrowing base calculation. The TCB Revolver matures, as amended September 30, 2020, on November 3, 2023. As of June 30, 2022, the balance outstanding was approximately $9.2 million. Note payable to JCM Holdings During October 2020, Marquis purchased a manufacturing facility for $2.5 million. Marquis had previously been leasing this facility. Additionally, Marquis entered into a $2.0 million note in favor of the seller of the facility for the balance of the purchase price, which note is secured by the facility. The note bears interest at 6%, and matures in January 2030. Principal and interest payments are due monthly, and the note is fully amortized at maturity. As of June 30, 2022, the remaining principal balance was approximately $1.7 million. Equipment Loans On June 20, 2016 and August 5, 2016, Marquis entered into a transaction that provided for a master agreement and separate loan schedules (the “Equipment Loans”) with Banc of America Leasing & Capital, LLC that provided for the following during the nine months ended June 30, 2022: In December 2021, Marquis funded the acquisition of $5.5 million of new equipment under note #9 of its master agreement. The note, which is secured by the equipment, matures December 2026, and is payable in 60 monthly installments of $92,000 beginning January 2022, bearing interest at 3.75%. Loan Covenant Compliance As of June 30, 2022, the Company was in compliance with all covenants under its existing revolving and other loan agreements.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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