Quarterly report pursuant to Section 13 or 15(d)

Line of Credit

Line of Credit
9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Line of Credit

Note 5 - Line of Credit

The Company's prior line of credit (the "Line of Credit") of $3,500,000 was paid off and terminated in January 2022.

On September 28, 2022, the Company entered into an Invoice Purchase and Security Agreement (together with an Inventory Finance Rider thereto, the "PSA") with Alterna Capital Solutions LLC ("ACS"). The ACS line of credit is for a term of 2 years, provides for borrowings of up to $15 million, which may be increased to an amount up to $20 million.

Pursuant to the Inventory Finance Rider to the RSA, the Company may request advances from time to time based upon the value of the Company’s inventory. Such advances bear interest of prime plus 2.25% and are required to be repaid at any time the aggregate outstanding amount of such advances exceed a designated percentage of the value of such inventory. The Company has granted the Lender a security interest in all of their respective personal property to secure their obligations under the PSA; provided that the Lender has a first priority security interest in the Company’s accounts receivable, payment intangibles and inventory. The PSA provides for an initial twenty-four (24) month term, followed by automatic annual renewal terms unless the Company provides written notice pursuant to the PSA prior to the end of any term. The foregoing summary of the PSA and Inventory Finance Rider do not purport to be complete and are qualified in their entirety by reference to the text of the PSA. On September 30, 2022, $271,749 was borrowed under the financing agreement and is shown net of debt issuance costs of $148,558.