Note 13 - Long-term Debt

12 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Debt Disclosure [Text Block]

13. Long-Term Debt

The Company had no long-term debt outstanding at September 30, 2025 or 2024.

On August 29, 2025, the Company amended its credit agreement (“the Agreement”) with Woodforest National Bank.  The Agreement extended the Company’s revolving loan agreement, dated as of July 26, 2023, with Woodforest.  The Agreement is for a three-year term and provides a revolving credit facility with a maximum availability of $25 million.  Interest shall accrue on outstanding borrowings at 30 Day Term SOFR plus a margin equal to 2.75% per annum. The Company is required to make monthly interest payments on borrowed funds. The Agreement is secured by substantially all of the Company's assets, except for certain excluded property. The Agreement requires the Company to maintain (i) a minimum consolidated tangible net worth of $85 million, (ii) minimum liquidity of $10 million, and (iii) a minimum asset coverage ratio of 2.00 to 1.00. The Agreement also requires the Company to maintain a springing minimum interest coverage ratio of at least 1.50 to 1.00, tested quarterly whenever (a) there is an outstanding balance on the revolving credit facility or (b) has letter of credit exposure greater than $1 million.

At September 30, 2025, the Company was in compliance with all covenants under the Agreement.  At September 30, 2025, the Company could borrow approximately $8 million under the Agreement without violating any debt covenants.

Debt issuance costs of $0.4 million were incurred in connection with the Agreement. These costs were capitalized in other non-current assets on the consolidated balance sheet and are being amortized to interest expense over the term of the Agreement.