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Note 9 - Debt | 9 Months Ended
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Oct. 02, 2022
Notes to Financial Statements |
Long-Term Debt [Text Block] |
(9) | Debt
Debt outstanding consists of the following (in thousands):
|  | October 2, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
|  | (Unaudited) |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Finance lease obligation, current portion |  | $ | 1,038 |  |  | $ | 983 |
Equipment financing obligations, current portion |  |  | 369 |  |  |  | 336 |
Note payable – related party, current portion |  |  | 2,500 |  |  |  | 0 |
Current portion of long-term debt and finance lease obligations |  | $ | 3,907 |  |  | $ | 1,319 |
Long-Term: |  |  |  |  |  |  |  |
Finance lease obligation |  | $ | 2,684 |  |  | $ | 3,469 |
Equipment financing obligations |  |  | 866 |  |  |  | 868 |
Note payable – related party |  |  | 4,000 |  |  |  | 6,500 |
Less unamortized debt issuance and modification costs |  |  | (12 | ) |  |  | (16 | )
Long-term debt and finance lease obligations net of unamortized debt costs |  | $ | 7,538 |  |  | $ | 10,821 |
Note Payable – Related Party The Company has received the benefit of cash infusions from Gill Family Capital Management, Inc. (“GFCM”) in the form of secured promissory note obligations totaling $6,500,000 in principal as of October 2, 2022 and December 31, 2021. 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. As of October 2, 2022, our principal commitment under the Note was $2,500,000 due on April 1, 2023, $2,000,000 on April 1, 2024 and the balance on April 1, 2026. Interest on the promissory note is reset on April 1 of each year, 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 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 2023 and 2024. 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, including those in Mexico. Finance Lease Obligations As of October 2, 2022, the Company had $3,722,000 outstanding under finance lease obligations for both property and machinery and equipment at its Sypris Technologies locations with maturities through 2026 and a weighted average interest rate of 8.5%. Equipment Financing Obligations As of October 2, 2022, the Company had $1,235,000 million outstanding under equipment financing obligations, with effective interest rates ranging from 4.4% to 8.1% and payments due through 2028. Payments on the Company’s equipment financing obligations are due as follows (in thousands):
Next 12 months |  | $ | 466 |
12 to 24 months |  |  | 429 |
24 to 36 months |  |  | 272 |
36 to 48 months |  |  | 147 |
48 to 60 months |  |  | 50 |
Thereafter |  |  | 6 |
Total payments |  |  | 1,370 |
Less imputed interest |  |  | (135 | )
Total equipment financing obligations |  | $ | 1,235 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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