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Note 12 - Debt
 3 Months Ended
Apr. 01, 2018
Notes to Financial Statements  
Long-term Debt [Text Block]
(
1
2
)
Debt
 
Debt outstanding consists of the following (in thousands):
 
   
April 1,
    
December 31,
  
   
2018
    
2017
  
   
(Unaudited)
    
 
 
 
                 
Current:
                
Current portion of capital lease obligation
   $
516
     $
829
  
                 
Long Term:
                
Note payable – related party
   $
6,500
     $
6,500
  
Capital lease obligation
    
3,286
      
3,397
  
Less unamortized debt issuance and modification costs
    
(62
 )    
(65
 )
Long term debt net of unamortized debt costs
   $
9,724
     $
9,832
  
 
Note Payable – Related Party
 
The Company has received the benefit of cash infusions from GFCM in the form of secured promissory note obligations totaling
$6,500,000
in principal as of
April 1, 2018
and
December 31, 2017.
GFCM is an entity controlled by the Company’s chairman, president and chief executive officer, Jeffrey T. Gill and
one
of our directors, R. Scott Gill. GFCM, Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. The promissory note bears interest at a rate of
8.0%
per year until
March 31, 2019
and, thereafter, at the greater of
8.0%
or
500
basis points above the
five
-year Treasury note average during the preceding
90
-day period, in each case, payable quarterly. The maturity dates for the obligation are as follows:
$2,500,000
of the obligation on
April 
1,
 
2021,
$2,000,000
on
April 1, 
2023
and the balance on
April 
1,
 
2025.
The note allows for up to an
18
-month deferral of payment for up to
60%
of the interest due on the portion of the notes maturing in
April
of
2021
and
2023.
 
Obligations under the promissory note are guaranteed by all of the subsidiaries and are secured by a
first
priority lien on substantially all assets of the Company.
 
Capital Lease Obligation
 
On
March 9, 2016,
the Company completed the sale of its
24
-acre Toluca property for
215,000,000
Mexican Pesos, or approximately
$12,182,000
in U.S. dollars. Simultaneously, the Company entered into a
ten
-year lease of the
9
acres and buildings currently occupied by the Company and needed for its ongoing business in Toluca. As a result of the Toluca Sale-Leaseback, the Company has a capital lease obligation of
$2,890,000
for the building as of
April 1, 2018.
 
In
January 2018,
the Company entered into a
36
-month capital lease for
$1,277,000
for new production equipment installed at its Sypris Electronics facility during
2017.
The balance of the capital lease obligation as of
April 
1,
 
2018
was
$912,000.