LINE OF CREDIT – FINANCIAL INSTITUTION

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

LINE OF CREDIT – FINANCIAL INSTITUTION

NOTE 6 – LINE OF CREDIT – FINANCIAL INSTITUTION

During February 2023, the Company entered into a $2 million master credit agreement (credit facility) with Bank of America (“LOC”). The LOC accrues interest at a rate determined by the Bloomberg Short-Term Bank Yield Index (“BSBY”) Daily Floating Rate plus 2.05 percentage points (which at June 30, 2024 and December 31, 2023 for the Company was 7.45% and 7.48%, respectively), and is secured by all the assets of the Champion Entities. The LOC expired February 28, 2024. The outstanding amount due on the LOC at June 30, 2024 and December 31, 2023 was, respectively.

	June 30, 2024		December 31, 2023
	(unaudited)		(audited)
Line of credit from a financial institution.	$	1,992,129	$	1,456,929
Total recorded as a current liability	$	1,992,129	$	1,456,929

As of June 30, 2024 and December 31, 2023 the total balance due of $1,992,129 and $1,456,929 is reported as current as the LOC was to be repaid within one year, with subsequent drawdowns as needed by the Company. Upon inception the Company paid a one-time loan fee equal to 0.1% of the LOC amount available. In the likelihood of default, the default interest automatically increases to 6% over the BSBY plus an additional 2.05% rate.

Initially the Company drew down on the LOC in the amount of $1.7 million, with subsequent net payments and draws on the LOC. The Company during the first quarter of 2024 increased the LOC amount beyond its initial drawdown amount.

The maturity date on the LOC was initially extended by Bank of America to April 30, 2024. The balance at the maturity was approximately $1.9 million and access to the line of credit with Bank of America was terminated. The Company, through its wholly-owned subsidiary Champion, and Bank of America have continued meaningful dialogue and the Company is working with Bank of America regarding term loan repayment options for the original LOC.