Note 6 - Long-Term Debt

6 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 6. Long-Term Debt

	(In thousands)
	September 30, 2025		March 31, 2025
RUS Loan	$	3,037		615
Bank Equipment Loans		426		213
Total Outstanding Debt		3,463		828
Less Current Portion		115		69
Total Long-Term Debt	$	3,348	$	759

The scheduled maturities of outstanding debt, excluding the effect of any future drawdowns or interest expense, at  September 30, 2025 are as follows (in thousands):

(In thousands)
Remainder of FY 2026	$	56
FY 2027		120
FY 2028		424
FY 2029		1,000
FY 2030 and thereafter		1,863
Total Outstanding Debt	$	3,463

The Company’s weighted-average interest rate for the outstanding debt agreements was 2.62% and 4.73% for the six months ended September 30, 2025 and fiscal year ended March 31, 2025, respectively. The Company's weighted-average interest rate on only its short-term borrowings outstanding was 7.07% as of   September 30, 2025 and 15.50% for the fiscal year ended March 31, 2025, which is solely inclusive of the bank equipment loans.
 

RUS Loan - On September 23, 2024, Amplex entered into a Reconnect Program Loan and Security Agreement (the “RUS Loan Agreement”) with the United States of America acting through the Administrator of the Rural Electric Services (“RUS”), pursuant to which RUS has extended Amplex a secured loan in the principal amount of up to $21,341,792 (the “RUS Loan”).  The cash received from the RUS Loan is restricted and held in a pledged deposit account, which is presented within “Prepaid expenses and other current assets” within the condensed consolidated balance sheets. The purpose of the RUS Loan is to finance the construction of a broadband infrastructure project to serve rural areas where at least 50% of the households are without sufficient access to broadband.

Amplex has five years to draw funds under the RUS Loan Agreement, which expires on October 31, 2029.  The RUS Loan is secured by all of Amplex’s assets and bears interest at a rate of 2% per annum, calculated by daily accrual.  All monthly payments for accrued interest and principal on advances are able to be deferred for a three-year period ending on October 31, 2027, unless earlier payments are elected to be made by the Company. At the end of the three-year deferral period, all unpaid accrued interest will be capitalized and added to the outstanding principal, and monthly payments will be established in an amount that amortizes the outstanding balance in equal payments over the remaining term of the RUS Loan.  The principal advanced pursuant to the RUS Loan Agreement and remaining unpaid, if any, and interest thereon, shall be due and payable on October 31, 2046.  All, or a portion of the outstanding balance, of any advance made under the RUS Loan Agreement may be prepaid on any payment date without penalty.

The obligation of RUS to advance funds to Amplex under the RUS Loan Agreement is subject to conditions that are customary for loans made by RUS, including the accuracy of Amplex’s representations and warranties, no material adverse effect with respect to Amplex, no event of default, receipt of a financial requirement statement from Amplex, current financial statements, compliance with buildout timelines, material compliance with the RUS Loan Agreement, obtaining specified permits, licenses and franchises and maintenance of on deposit in a pledged deposit account of required matching funds for completion of projects.  Other conditions include Amplex having positive cash flow from operations at the end of the fifth year of an award under the RUS Loan Agreement and providing the specified level of broadband service for the period specified in the RUS Loan Agreement.  The RUS Loan Agreement contains negative covenants of Amplex that are customary for loans made by RUS, including Amplex not merging, consolidating, reorganizing or selling, leasing or transferring a substantial part of its property without RUS’ prior written consent, Amplex not incurring additional debt with specified exceptions, Amplex not changing its principal place or place of business without RUS’ consent and Amplex not issuing preferred stock without RUS’ consent.  RUS may suspend advances if Amplex suffers a material adverse effect or an event of default occurs.

The RUS Loan Agreement contains customary events of default, including materially incorrect representations and warranties, nonpayment of the RUS Loan, improper expenditures, failure to keep adequate records, failure to build in accordance with timelines, bankruptcy, dissolution or liquidation and impairment of business. If an event of default occurs, RUS could restrict Amplex’s ability to obtain additional advances under the RUS Loan Agreement, accelerate all amounts outstanding under the RUS Loan Agreement, enforce RUS’ interest against the collateral pledged under the RUS Loan Agreement or enforce such other rights and remedies as RUS may have under the loan documents or applicable law as secured lenders.

Bank Equipment Loans - In November 2024, June 2025, and August 2025, the Company entered into equipment finance agreements with Huntington National Bank (collectively, the “Bank Equipment Loans”) to provide financing for the purchase of certain equipment fixed assets. The Bank Equipment Loans are secured by the respective pieces of equipment acquired under each agreement and contain customary covenants and events of default, including materially incorrect representations and warranties, nonpayment, and failure to maintain proper registrations, titles, permits, licenses, and insurance policies covering the equipment. Interest under the Bank Equipment Loans accrues at a rate indexed to the "ICE Swap Rate - USD rates SOFR 1100" as published by Intercontinental Exchange, Inc., subject to a maximum of 18% per annum. Payments are due monthly, with the loans maturing in November 2026 and July 2029, respectively.