Debt |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Debt Disclosure [Abstract] | |
| Debt | Debt Siena Revolver
In March 2023, the Company entered into a Loan and Security Agreement (the “Siena Revolver”) with Siena Lending Group, LLC (“Siena”) which permits the Company to receive funding through a revolving line of credit with an initial commitment of $35.0 million. The Company’s borrowing capacity under the Siena Revolver is subject to certain conditions, including the Company’s eligible inventory and accounts receivable balances among other limitations as specified in the agreement. In connection with this facility the Company incurred $1.1 million of debt issuance costs which have been included in other assets on the Company’s condensed consolidated balance sheet and being amortized through the Siena Revolver’s scheduled maturity date. On July 16, 2024, the Company entered into Amendment No. 1 to Siena Revolver (“Siena Amendment No. 1”). The Siena Amendment modified certain terms related to how the Company’s available borrowing capacity is determined and when appraisals are required. The Siena Amendment No. 1 did not modify any other terms related to the Siena Revolver, including maturity date or maximum borrowing capacity. On November 21, 2024, the Company entered into Amendment No. 2 to Siena Revolver (“Siena Amendment No. 2”, and together with Siena Amendment No. 1, collectively, the “Siena Amendments”). The Siena Amendment No. 2 modified certain terms related to how the Company’s available borrowing capacity is determined, when appraisals are required and conditions that must be satisfied to consummate acquisitions and pay earn-outs. The Siena Amendment No. 2 also eliminated certain contingencies related to the maturity date. The Siena Amendment No. 2 did not modify any other terms related to the Siena Revolver, including maximum borrowing capacity. The Company accounted for the Siena Amendments under debt modification accounting due to the terms being deemed not substantially different. The Company paid $0.3 million of issuance costs related to the Siena Amendments which are included within other assets on the Company’s condensed consolidated balance sheets and being amortized through the Siena Revolver’s scheduled maturity date.
On May 8, 2025, the Company entered into an amendment to the Siena Revolver (the “2025 Siena Amendment”), which among other things, extended the maturity date of the Siena Revolver to April 10, 2028 (See Note 13, Subsequent Events). Due to the 2025 Siena Amendment, the Siena Revolver has been classified as long-term debt on the Company’s consolidated balance sheet as of March 31, 2025. Under the 2025 Amendment, the interest rates applicable to borrowings under the Siena Revolver are based on a fluctuating rate of interest measured by reference to either, at the Company’s option, (i) a Base Rate plus 3.25% or (ii) the term Secured Overnight Financing Rate (“Term SOFR”) then in effect plus 4.25%. The Base Rate is defined as the greatest of: (1) Prime Rate as published in the Wall Street Journal, (2) federal funds rate plus 0.50% and (3) 5.00% per annum.
The Siena Revolver also contains various financial covenants the Company must maintain to avoid an Event of Default, as defined by the agreement. In accordance with the agreement, Siena has been provided with the Company’s periodic financial statements and updated projections to facilitate their ongoing assessment of the Company. As of March 31, 2025, the Company was in compliance with these debt covenants.
The Siena Revolver is collateralized by the Company’s accounts receivable and inventory balance. As of March 31, 2025, the Company has an outstanding principal balance of $7.5 million under the Siena Revolver with an interest rate of 8.17%. As of March 31, 2025, additional borrowing capacity from the Siena Revolver was $4.3 million. Under the 2025 Siena Amendment, additional borrowing capacity from the Siena Revolver was $1.7 million as of May 14, 2025. The Siena Revolver is the Company’s only debt facility as of March 31, 2025 and December 31, 2024.
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