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Note 7 - Debt | 6 Months Ended
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Jun. 30, 2024
Notes to Financial Statements |
Debt Disclosure [Text Block] | NOTE 7: DEBT Debt for the Company consists of the following:
|  |  |  |  |  | June 30, |  |  | December 31, |  |  |  |  |  |  |  |  |
Debt Instrument |  | Issuance Date |  | Maturity Date |  | 2024 |  |  | 2023 |  |  | Warrants |  |  | Interest Rate Information |
Revolving credit facility |  | 5/23/2024 |  | 5/23/2027 |  | $ | 13,819 |  |  | $ | - |  |  | None |  |  | See below |
Acquisition Term Loan |  | 2/17/2022 |  | 2/15/2025 |  |  | - |  |  |  | 10,000 |  |  |  | 833,334 |  |  |  | 8 | %
Consolidation Term Loan |  | 2/17/2022 |  | 2/15/2025 |  |  | - |  |  |  | 5,147 |  |  |  | 898,165 |  |  |  | 10 | %
Total debt, gross |  |  |  | 13,819 |  |  |  | 15,147 |  |  |  |  |  |  |  |  |
Less: Deferred financing costs |  |  | 269 |  |  |  | 1,628 |  |  |  |  |  |  |  |  |
Total debt, net |  |  | 13,550 |  |  |  | 13,519 |  |  |  |  |  |  |  |  |
Less: Current portion |  |  | - |  |  |  | 3,690 |  |  |  |  |  |  |  |  |
Total long-term debt, net |  | $ | 13,550 |  |  | $ | 9,829 |  |  |  |  |  |  |  |  |
On May 23, 2024, the Company entered into a Credit Agreement (the "Credit Agreement") with First Merchants Bank (the "Bank"). The Credit Agreement provides the Company with a $22,100 secured revolving credit facility, with an uncommitted accordion feature that provides for additional borrowing capacity of up to $5,000, subject to the Bank's approval and other customary terms and conditions set forth in the Credit Agreement. The revolving credit facility matures on May 23, 2027, subject to any earlier default under the Credit Agreement. The Credit Agreement requires the Company to pay the entire unpaid principal balance of the revolving credit facility on the maturity date, May 23, 2027, subject to any earlier default under the Credit Agreement. The Credit Agreement includes, among other things, the occurrence of any event which could reasonably be anticipated to cause or result in a “Material Adverse Effect” (as defined in the Credit Agreement) as an event of default under which the outstanding balance could become due and payable to the Bank. The Company has determined that the risk of such event is not probable and therefore has classified the outstanding balance in long-term liabilities in the Condensed Consolidated Balance Sheets based on the maturity date. On May 23, 2024, the Company borrowed $13,667 under the revolving credit facility to repay all obligations owing to its prior lender, Slipstream Communications, LLC, including the outstanding principal balance of $10,000 on the Acquisition Term Loan, the outstanding principal balance of $3,593 on the Consolidation Term Loan and accrued interest expense incurred through the payoff date of $74. The Company recognized a $1,059 loss on extinguishment of debt equal to the unamortized portion of debt discount at May 23, 2024 associated with the Acquisition Term Loan and Consolidation Term Loan. The revolving credit facility accrues interest at a floating rate equal to the 1-month SOFR, plus 0.11%, plus a floating margin ranging from 2.00% to 3.50% that adjusts quarterly, depending upon the Company's Senior Funded Debt to EBITDA Ratio. The floating margin is determined as follows:
Senior Funded Debt to EBITDA Ratio |  | Floating Margin |
< 1.00 to 1 |  |  | 2.00 | %
≥ 1.00 to 1.00 but < 2.00 to 1.00 |  |  | 2.50 | %
≥ 2.00 to 1.00 but < 3.00 to 1.00 |  |  | 3.00 | %
≥ 3.00 to 1.00 |  |  | 3.50 | %
The effective interest rate at June 30, 2024 was 8.93%. The Company shall pay accrued interest monthly on the first day of each successive calendar month, beginning July 1, 2024, and continuing thereafter. The Company incurred $281 of deferred financing costs that were capitalized during the three months ended June 30, 2024 and recorded as other non-current assets within the Condensed Consolidated Balance Sheets. Deferred financing costs will be amortized as interest expense over the respective debt instrument period, 36 months. The Company had $13,819 in outstanding borrowings under the revolving credit facility as of June 30, 2024. Total availability under the revolving facility was $4,281, after accounting for $4,000 reserved under the Credit Agreement until resolution of the Contingent Consideration. As of June 30, 2024, the Company was in compliance with all applicable debt covenants.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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