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DUE FROM FACTOR
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
DUE FROM FACTOR

NOTE 6: DUE FROM FACTOR

 

The Company, via its subsidiaries, Bailey, Stateside and Sundry, assigns a portion of its trade accounts receivable to third- party factoring companies, who assumes the credit risk with respect to the collection of non-recourse accounts receivable. The Company may request advances on the net sales factored at any time before their maturity date. The factor charges a commission on the net sales factored for credit and collection1 services. For one factoring company, interest on advances is charged as of the last day of each month at a rate equal to the Term SOFR rate plus 2.5% for Bailey. For Stateside and Sundry, should total commission and fees payable be less than $30,000 in a single year, then the factor shall charge the difference between the actual fees in said year and $30,000 to the Company. Interest on advances is charged as of the last day of each month at a rate equal to the greater of either, (a) the Chase Prime Rate + (2.0)% or (b) (4.0)% per annum. For another factoring company, interest is charged at one-thirty-third (1/33) of one percent per day, such rate to increase or decrease in accordance with changes in the “Prime Rate”, which such prime rate to be deemed to be 4.25% on the date of the agreement.

 

 

Advances are collateralized by a security interest in substantially all of the companies’ assets.

 

Due to/from factor consist of the following:

 

   2025   2024 
   December 31, 
   2025   2024 
Outstanding receivables:          
Without recourse  $283,849   $460,815 
With recourse   13,920    142,914 
Matured funds and deposits   61,838    61,941 
Advances   (86,170)   (275,484)
Credits due customers   -    - 
Due from factor, net  $273,437   $390,186