Debt and Stockholders' Equity

3 Months Ended

Mar. 31, 2026

Debt [Abstract]

Debt and Stockholders' Equity

4. Debt and Stockholders’ Equity

Long-term debt consists of (i) borrowings under the Company’s revolving loan agreement with HSBC Bank USA, N.A. (“HSBC”) and (ii) amounts outstanding under the fixed rate mortgage on the Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA. Effective as of June 26, 2025, the Company entered into Amendment No. 11 to the Revolving Loan Agreement dated as of April 5, 2012, as amended (the ”Loan Agreement”), between the Company and HSBC. Amendment No. 11 extended the scheduled maturity of the $65 million dollar secured revolving credit facility under the Loan Agreement to May 31, 2027. The terms of the Loan Agreement otherwise remain unchanged. The Loan Agreement provides for borrowings of up to $65 million at an interest rate of Secured Overnight Financing Rate (“SOFR”) plus a margin of +1.75%; interest is payable monthly. The Company must pay a facility fee, payable quarterly, in an amount equal to one eighth of one percent (.125%) per annum of the average daily unused portion of the revolving credit line. The facility is intended to provide liquidity for operating activities, growth, acquisitions, dividends, share repurchases and other business activities. Under the Loan Agreement, the Company is required to maintain a specific ratio of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year. As of March 31, 2026, the Company was in compliance with the covenants under the Loan Agreement as then in effect.

As of March 31, 2026 and December 31, 2025, the Company had outstanding borrowings under the Loan Agreement of $33,034,000 and $11,863,000, excluding deferred financing costs of $4,000 and $10,299, respectively.

The Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA were financed by a mortgage with HSBC at a fixed interest rate of 3.8%. The Company entered into the agreement on December 1, 2021. Commencing on January 1, 2022, payments of principal and interest are due monthly, with all amounts outstanding due on maturity on December 1, 2031. As of March 31, 2026 and December 31, 2025, long-term debt related to the mortgage consisted of the following (amounts in ‘000’s):

	March 31, 2026			December 31, 2025
Mortgage payable - HSBC Bank N.A.	$	9,906		$	9,976
Less debt issuance costs		(86	)		(90	)
		9,820			9,886
Less current maturities		458			454
Long-term mortgage payable less current maturities	$	9,362		$	9,432

During the three months ended March 31, 2026, the Company issued a total of 2,876 shares of common stock and received aggregate proceeds of $97,000 upon exercise of employee stock options. During the three months ended March 31, 2026, the Company paid approximately $1,462,000 to optionees who had elected (subject to the approval of the Company) a net cash settlement of certain of their respective options. In addition, during the three months ended March 31, 2026, the Company issued a total of 759 shares of common stock to optionees who had elected (subject to the approval of the Company) a net share settlement of certain of their respective options.