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Note 9 - Debt

9 Months Ended

Sep. 28, 2025

(9)

Debt

Debt outstanding consists of the following (in thousands):

	September 28,		December 31,
	2025		2024
	(Unaudited)
Current:
Finance lease obligation, current portion	$	974	$	1,507
Equipment financing obligations, current portion		464		481
Working capital line of credit		500		500
Note payable – related party, current portion		2,000		0
Current portion of long-term debt and finance lease obligations	$	3,938	$	2,488

Long Term:
Finance lease obligation	$	4,101		$	735
Equipment financing obligations		650			852
Note payable – related party		10,000			9,000
Less unamortized debt issuance and modification costs		(9	)		(14	)
Long-term debt and finance lease obligations net of unamortized debt costs	$	14,742		$	10,573

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 $12,000,000 in principal as of September 28, 2025 and $9,000,000 as of December 31, 2024 (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. As of September 28, 2025, our principal commitment under the Note was $2,000,000 due on April 1, 2026, $2,000,000 on April 1, 2027, $5,000,000 on April 1, 2028 and the balance of $3,000,000 due on April 1, 2029. Interest on the 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, which was 9.25% as of September 28, 2025. The Note allows for a deferral of payment for up to 100% of the interest due on the Note to April 1, 2026. The total amount of interest on the Note deferred as of September 28, 2025 was $1,641,000.

During the first quarter of 2025, the Company amended the Note to increase the principal amount by $3,000,000, which is due on April 1, 2029. The amendment increased the aggregate amount previously loaned by GFCM to the Company from $9,000,000 to $12,000,000. This additional amount loaned to the Company in the first quarter of 2025 was approved by the Audit Committee and provided the Company necessary liquidity.

Obligations under the 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 September 28, 2025, the Company had $5,075,000 outstanding under finance lease obligations for both property and machinery and equipment with maturities through 2036 and a weighted average interest rate of 12.6%.

Equipment Financing Obligations

As of September 28, 2025, the Company had $1,114,000 outstanding under equipment financing facilities, with a weighted average interest rate of 6.9% and payments due through 2030. Payments on the Company’s equipment financing obligations are due as follows (in thousands):

Next 12 months	$	529
12 to 24 months		427
24 to 36 months		227
36 to 48 months		23
48 to 60 months		19
Thereafter		0
Total payments		1,225
Less imputed interest		(111	)
Total equipment financing obligations	$	1,114