Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt Notes Payable
In December 2023, the Company entered into a secured notes payable agreement with Cemen Tech Capital, LLC bearing an interest rate of 8.75% per year (the "Cemen Note"). During the first quarter of fiscal 2023, the Company entered into a secured notes payable agreement with Ford Motor Credit bearing an interest rate of 6.96% per year (the "Ford Note"). The Cemen Note and the Ford Note (collectively, the "Notes") are secured by the vehicles financed. Monthly principal and interest payments are to be made commencing from the issuance date of the Cemen Note and the Ford Note through January 2030 and April 2026, respectively. The outstanding balance as of September 30, 2024 and December 31, 2023 related to the Notes was $0.3 million and $0.3 million, respectively. The difference of approximately $0.1 million for both September 30, 2024 and December 31, 2023, in the condensed consolidated balance sheets relates to several smaller notes, which are individually immaterial.
In August 2024, the Company entered into a secured notes payable agreement with Skyline Sales Inc., facilitated by Ford Motor Credit, for financing a vehicle with a total sale price of $0.1 million, of which $46,000 was financed (the "Skyline Note"). This agreement bears no annual percentage rate or finance charge, and monthly principal payments of $1,345 began on September 29, 2024, and will continue through August 29, 2027. The Skyline Note is secured by the vehicle purchased. As of September 30, 2024, the remaining balance of the Skyline Note was $31,000.
As of September 30, 2024, the expected future minimum principal payments under the Company’s notes payable are as follows (in thousands):
Lines of Credit
In May 2024, the Company entered into a line of credit ("LOC") agreement for up to $0.6 million with Mobilization Funding II, LLC (the “Mobilization LOC”) bearing an interest rate of 3% per month. The Mobilization LOC was collateralized by two construction agreements entered with two third parties, Glass Roots Construction, LLC and Fatbeam, LLC. During the quarter ended June 30, 2024 the Company drew $0.6 million on the Mobilization LOC. As of September 30, 2024, the Company has fully repaid the Mobilization LOC and no further amounts were borrowable. In May 2024, the Company entered into a Corporate Guaranty agreement (the “Guaranty”) with Mobilization Funding II, LLC (the “Mobilization II LOC”), thereby establishing a LOC of up to $0.6 million. During the second quarter of fiscal year 2024, the Fiber Optics division borrowed approximately $0.6 million under the Mobilization II LOC. The Mobilization II LOC bears an effective interest at a rate of 57.0% per annum, calculated on a 360-day year basis, with interest payable upon maturity. The principal and accrued interest were due on October 31, 2024. As of September 30, 2024, the Company has fully repaid the Mobilization II LOC and no further amounts were borrowable.
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