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Note 12 - Debt

12 Months Ended

Dec. 31, 2024

(12)

Debt

Long-term obligations consists of the following (in thousands):

	December 31,
	2024			2023
Current:
Finance lease obligation, current portion	$	1,507		$	1,327
Equipment financing obligations, current portion		481			618
Working capital line of credit		500			500
Current portion of long-term debt and finance lease obligations	$	2,488		$	2,445
Long-Term:
Finance lease obligations	$	735		$	1,852
Equipment financing obligations		852			1,333
Note payable – related party		9,000			6,500
Less unamortized debt issuance and modification costs		(14	)		(16	)
Long-term debt and finance lease obligations, net of unamortized debt costs	$	10,573		$	9,669

The Company had no capitalized interest in 2024 or 2023.

Note Payable – Related Party

The Company has received the benefit of loans from GFCM in the form of secured promissory note obligations totaling $9,000,000 in principal as of December 31, 2024 and $6,500,000 as of December 31, 2023 (the “Note”). 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.

During the year ended December 31, 2024, the Company and GFCM amended the Note to, among other things: (i) increase the principal amount by $2,500,000 to $9,000,000, (ii) extend the maturity dates for $2,000,000 of the obligation to April 1, 2025, $2,000,000 to April 1, 2026 and the balance to April 1, 2027, and (iii) allow for the deferral of payment for up to 60% of the interest due on the Note to April 1, 2025. During the first quarter of 2025, the Company further amended the Note to increase the principal amount by $3,000,000 with a maturity date of April 1, 2029, extend the maturity dates on all tranches by one year and allow for the continued deferral of payment for up to 100% of the interest due on the Note to April 1, 2026. Interest on the Note is payable quarterly, and the rate is reset on April 1 of each year at the greater of 8% or 500 basis points above the five-year Treasury note average during the previous 90-day period. This additional $2,500,000 loaned to the Company during 2024 and $3,000,000 loaned during the first quarter of 2025 was approved by the Audit Committee and provided the Company necessary liquidity (see Note 22).

The weighted average interest rate for the Note as of December 31, 2024 and 2023 was 9.2% and 8.7%, respectively. Interest paid on the Note during the years ended December 31, 2024 and 2023 totaled approximately $283,000 and $479,000, respectively.

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 December 31, 2024, the Company had $2,242,000 outstanding under finance lease obligations for both property and machinery and equipment with maturities through 2028 and a weighted average interest rate of 8.7%.

Equipment Financing Obligations

As of December 31, 2024, the Company had $1,333,000 outstanding under equipment financing facilities, with a weighted average interest rate of 6.7% and payments due through 2028. Payments on the Company’s equipment financing obligations are due as follows (in thousands):

Next 12 months	$	557
12 to 24 months		461
24 to 36 months		349
36 to 48 months		110
48 to 60 months		0
Thereafter		0
Total payments		1,477
Less imputed interest		(144	)
Total equipment financing obligations	$	1,333