XML 20 R10.htm IDEA: XBRL DOCUMENT v3.25.3
Note 4 - Loans
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 4. Loans

 

Equipment Loans

 

On March 20, 2021, the Company entered into a debt arrangement to finance $165,996 for the purchase of an Output Solutions sorter. The loan was for a period of 36 months with a maturity date of March 20, 2024 and annual interest of 3.95%. Monthly principal and interest payments were required in the amount of $4,902. Principal payments for the three months ended  September 30, 2025 and 2024 were $0. Principal payments for the nine months ended September 30, 2025 and 2024 were $0 and $14,312, respectively, and are reflected on the Company's Condensed Consolidated Statement of Cash Flows. This loan was paid in full on its maturity date.

 

On  October 1, 2023, the Company entered into a debt arrangement to finance $811,819 for the purchase of an Output Solutions folder and inserter. The loan is for a period of 66 months with a maturity date of  April 5, 2029 and annual interest of 6.75%. Monthly principal and interest payments are required in the amount of $16,017, with monthly interest only payments in the amount of $4,744 required for the first six months of the loan term. Total interest and principal payments on this folder and inserter equipment loan were $47,953 for each of the three months ended  September 30, 2025 and  September 30, 2024. Total interest and principal payments on this folder and inserter equipment loan were $143,859 for the nine months ended September 30, 2025 and $98,121 for the nine months ended September 30, 2024. 

 

On  September 19, 2025, the Company entered into a debt arrangement to finance $1,017,954 for the purchase of an Output Solutions printer. The loan is for a period of 66 months with a maturity date of  March 19, 2031 and annual interest of 6.75%. Monthly principal and interest payments are required in the amount of $20,088, with monthly interest only payments in the amount of $5,758 required for the first six months of the loan term beginning in October 2025. As of September 30, 2025, only $226,212 in proceeds have been drawn from the loan and presented on the Company's balance sheet with the remaining commitment of $791,742 still available.

 

As of September 30, 2025, the Company maintained an undrawn line of credit and an outstanding letter of credit, both of which were established in connection with a bond required for the Company's appeal of the court’s decision in the KDHM lawsuit. See "Note 11. Commitments and Contingencies" for further information.

 

Line of Credit

 

The Company has an unsecured revolving line of credit with a maximum borrowing capacity of $475,000. The facility was established on  May 29, 2024 and matures on  June 5, 2026. As of  September 30, 2025, no amounts had been drawn under this line of credit since its origination. This line of credit was obtained to support the bond requirement in the KDHM lawsuit appeal but remains fully available.

 

Letter of Credit

 

The Company has an irrevocable letter of credit in the amount of $474,229, issued on  June 3, 2024, with a maturity date of  June 3, 2026. This letter of credit was obtained as part of the bonding requirement for the KDHM lawsuit appeal and has not been drawn upon since its issuance.

 

These credit facilities were arranged to comply with legal requirements related to the Company’s KDHM lawsuit appeal and provide additional liquidity resources if needed. Management continues to monitor its financial position and believes that existing cash balances, along with these credit facilities, are sufficient to meet operational needs and legal obligations.

 

Future principal payments on current debt arrangements are as follows at September 30, 2025:

 

Year ending December 31,

    
     
  

Amount Due

 

2025 (remainder of the year)

 $37,900 

2026

  289,317 

2027

  263,986 

2028

  180,818 

2029

  64,681 

Total payments

 $836,702