LONG-TERM DEBT

12 Months Ended

Dec. 31, 2024

LONG-TERM DEBT [Abstract]

LONG-TERM DEBT

5. LONG-TERM DEBT

Long-term debt consists of the following:

	Dollars in Thousands
	December 31, 2024		December 31, 2023
Connecticut Department of Economic and Community Development (DECD)	$	115	$	146
DECD debt issuance costs		(9)		(12)
Financed insurance loan		177		207
Business loan agreement		91		—
Total long-term debt		374		341
Current portion of long-term debt		(297)		(235)
Long-term debt, net of current maturities	$	77	$	106

Department of Economic and Community Development

On January 8, 2018, the Company entered into an agreement with DECD by which the Company received a loan of $300,000 secured by substantially all of the Company’s assets (the “DECD 2018 Loan”). The DECD 2018 Loan is a ten-year loan due on December 31, 2027 and includes interest paid monthly at 3.25%.  The maturity date of the DECD 2018 Loan was extended to May 31, 2028 and the modification did not have a material impact on the Company’s cash flows.

Debt issuance costs associated with the DECD 2018 Loan were approximately $31,000. Amortization of the debt issuance cost was approximately $3,000 and $3,000 for the years ended December 31, 2024 and 2023, respectively. Net debt issuance costs were approximately $9,000 and $12,000 at December 31, 2024 and 2023, respectively, and are presented as a reduction of the related debt in the accompanying consolidated balance sheets. Amortization for each of the next three years is expected to be approximately $3,000.

Financed Insurance Loan.

The Company finances certain of its insurance premiums (the “Financed Insurance Loans”).  In July 2024, the Company financed $0.3 million with a 9.99% interest rate and is obligated to make payments on a monthly basis through June 2025. In July 2023, the Company financed $0.4 million with a 9.99% interest rate, which was paid off in June 2024. As of December 31, 2024 and 2023, the Financed Insurance Loan’s outstanding balance of $0.2 million, respectively, was included in current maturities of long-term debt in the Company’s consolidated balance sheets. A corresponding prepaid asset was included in other current assets.

Business Loan Agreement.

On May 1, 2024, the Company entered into a Business Loan and Security Agreement (the “Loan Agreement”) with Altbanq Lending LLC, pursuant to which the Company obtained a loan in the principal amount of $250,000 (the “Secured Loan”). According to the Loan Agreement, the Company granted the lender a continuing security interest in certain collateral (as defined in the Loan Agreement). Furthermore, the Company’s Chief Executive Officer provided a personal guaranty for the Secured Loan. The Secured Loan has a term of one year and an interest rate of 20%, such that pursuant to the Loan Agreement, the Company is obligated to pay the Lender fifty-two payments of $5,769 on a weekly basis and the total sum of the Secured Loan and interest (not including any fees) shall equal a total repayment amount of $300,000. If the Company defaults on payments then a default fee of $15,000 shall be payable to the lender.

The Company has the right, at its discretion, to request the lender to loan an additional amount of up to $250,000 on the same terms and conditions as set forth in the Loan Agreement, provided that there has been no material change in the Company’s finances.

As of December 31, 2024 and December 31, 2023, the outstanding balance of $0.1 million and zero, respectively, under the Loan Agreement, was included in current maturities of long-term debt in the Company’s consolidated balance sheets.

The aggregate future maturities required on gross long-term debt at December 31, 2024 are as follows:

	2025		2026		2027		2028		Total
DECD loan	$	32	$	33	$	34	$	16	$	115
Financed insurance loan		177		—		—		—		177
Business loan agreement		91		—		—		—		91
	$	300	$	33	$	34	$	16	$	383