Notes Payable

12 Months Ended

Dec. 31, 2022

Notes Payable

Notes Payable

2. NOTES PAYABLE

Notes payable consist of the following (in thousands):

	December 31,
	2022			2021
Note payable to Summit Community Bank (the "Bank"), maturing February 2037; with monthly payments of approximately $21 of principal and interest fixed at 4.09%; net of $24 of deferred loan costs; collateralized by the related real property.	$	2,668		$	—
Note payable to the Bank, maturing October 2029; with monthly payments of approximately $22 of principal and interest fixed at 3.64% under a Promissory Notes Rate Conversion Agreement; net of $18 and $21 of deferred loan costs; collateralized by all assets of Smith-Carolina Corporation and guaranteed by the Company.		1,590			1,791
Note payable to the Bank, maturing March 2030; with monthly payments of approximately $27 of principal and interest fixed at 3.99%; net of $25 and $29 of deferred loan costs; net of collateralized by the Company’s property, plant, and buildings.		2,039			2,275
Installment notes, collateralized by certain machinery and equipment maturing at various dates; with monthly payments varying from $0.9 to $3.4 with annual interest rates between 2.90% and 4.50%.		51			76
A revolving line-of-credit evidenced by promissory note with the Bank, with the available amount of $5,000, maturing October 1, 2023, with interest only payments and an initial rate of 3.50% adjustable monthly (3.50% at December 31, 2022). The amount available is based on the lower of the maximum $5,000 or eligible inventory and accounts receivable balances at the financial statement date. The line-of-credit is collateralized by a first lien position on the Company's accounts receivable and inventory and a second lien position on all other business assets.		—			—
Total Notes Payable Outstanding		6,348			4,142
Less current maturities		(618	)		(462	)
	$	5,730		$	3,680

The total notes payable balance is offset by debt issuance costs associated with securing the loans summarized above and are amortized over the term of the related loan. The total unamortized costs as of December 31, 2022 is $68.

In addition to the notes payable discussed above, on April 16, 2020, the Company obtained a loan, evidenced by a promissory note, under the Paycheck Protection Program (the "PPP") from the Bank in the amount of $2,692. The PPP provides for loans to qualifying businesses, the proceeds of which may only be used for payroll costs, rent, utilities, mortgage interest, and interest on other pre-existing indebtedness. The interest rate per the promissory note, dated April 16, 2020 and executed by the Company in favor of the Bank, was fixed at 1.00% per annum, with principal and interest payments starting thirty (30) days after the amount of forgiveness is determined under section 1106 of the CARES Act. The proceeds of the loan were required to be utilized pursuant to the requirements of the PPP, and all or a portion of the loan could be forgiven in accordance with the PPP applicable rules, regulations, and guidelines. On July 9, 2021, the Company received loan forgiveness for the full amount of the loan of $2,692.

The Company's notes payable includes certain restrictive covenants, which require the Company to maintain minimum levels of tangible net worth, places limits on annual capital expenditures, and limits on the payment of cash dividends. At December 31, 2022, the Company was in compliance with all covenants.

The aggregate amounts of notes payable maturing in each of the next five years and thereafter are as follows (in thousands):

Year Ending December 31,
2023	$	618
2024		636
2025		658
2026		671
2027		699
Thereafter		3,066
	$	6,348