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Note 3 - Long-Term Debt Financing | 6 Months Ended
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Jun. 30, 2023
Notes to Financial Statements |
Long-Term Debt [Text Block] | Note 3. Long-Term Debt Financing On April 9, 2021 the Company along with certain of its domestic subsidiaries (collectively, the “Loan Parties”) entered into a five year $22,000,000 credit agreement with Fifth Third Bank, N.A. (the “Credit Agreement”). The Credit Agreement includes three loan facilities. The first loan facility is a $9,500,000 term loan (the “Term Loan”) which was used to refinance the domestic Gamma Knife debt and finance leases, and associated closing costs. The second loan facility of $5,500,000 is a delayed draw term loan (the “DDTL”) which was used to refinance the Company’s PBRT finance leases and associated closing costs, as well as to provide additional working capital. The third loan facility provides for a $7,000,000 revolving line of credit (the “Revolving Line”) available for future projects and general corporate purposes. The facilities have a five-year maturity and carry a floating interest of LIBOR plus 3.0% and are secured by a lien on substantially all of the assets of the Loan Parties and guaranteed by ASHS. The long-term debt on the condensed consolidated balance sheets related to the Term Loan and DDTL was $11,575,000 and $12,624,000 as of June 30, 2023 and December 31, 2022, respectively. As of December 31, 2021, LIBOR will no longer be used to price new loans, but 1-month, 3-month, and 6-month maturities will continue to be published using a synthetic methodology until September 30, 2024. The Company is working with Fifth Third Bank, N.A. to transition its loan pricing to be based on the Secured Overnight Financing Rate (SOFR) rather than LIBOR. Any credit extended by Fifth Third Bank, N. A. after July 1, 2023 will be a SOFR based loan. The Revolving Line is charged an unused line fee of 0.25% per annum. The Term Loan and DDTL have interest and principal payments due quarterly. Principal amortization on an annual basis for the Term Loan and DDTL equates to 48% of the original principal loan commitments in years one through five and an end of term payment of the remaining principal balance. The Credit Agreement contains customary covenants and representations, including without limitation, a minimum fixed charge coverage ratio of 1.25 and maximum funded debt to EBITDA ratio of 3.0 to 1.0 (tested on a trailing twelve-month basis at the end of each fiscal quarter), reporting obligations, limitations on dispositions, changes in ownership, mergers and acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and capital expenditures. The Loan Parties are in compliance with the Credit Agreement covenants as of June 30, 2023. The loan entered into with United States International Development Finance Corporation (“DFC”) in connection with the acquisition of GKCE in June 2020 (the “DFC Loan”) was obtained through the Company’s wholly-owned subsidiary, HoldCo and is guaranteed by GKF. The DFC Loan is secured by a lien on GKCE’s assets. The amount outstanding under the DFC Loan is payable in 17 quarterly installments with a fixed interest rate of 3.67%. The DFC Loan also contains customary covenants and representations, which the Company is in compliance with as of June 30, 2023. The long-term debt on the condensed consolidated balance sheets related to the DFC loan was $931,000 and $1,041,000 as of June 30, 2023 and December 31, 2022, respectively. The Company capitalized debt issuance costs of $9,000 as of December 31, 2022, related to maintenance and administrative fees on the DFC Loan. There were no costs capitalized related to the DFC Loan in the six-month period ended June 30, 2023. The accretion of debt issuance costs for the three and six-month periods ended June 30, 2023 and 2022 was $19,000 and $37,000, respectively. As of June 30, 2023 and December 31, 2022, the unamortized deferred issuance costs on the consolidated balance sheets were $162,000 and $198,000, respectively. As of June 30, 2023, long-term debt on the condensed consolidated balance sheets was $12,344,000. The following are contractual maturities of long-term debt as of June 30, 2023, excluding deferred issuance costs of $162,000:
Year ending December 31, |  | Principal |
2023 (excluding the six-months ended June 30, 2023) |  | $ | 485,000 |
2024 |  |  | 2,094,000 |
2025 |  |  | 2,469,000 |
2026 |  |  | 7,294,000 |
2027 |  |  | 164,000 |
|  | $ | 12,506,000 |

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