Debt |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Debt Disclosure [Abstract] | |
| Debt | Debt Siena Revolver
The Company entered into a Loan and Security Agreement, and subsequent amendments, 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 “Siena Revolver”). The Company’s borrowing capacity under the Siena Revolver is subject to certain conditions, including the Company’s eligible inventory, accounts receivable and certain qualifying cash balances held with third-party payment processors, in each case subject to specified eligibility criteria and other limitations as specified in the agreement. If at any time the amount of outstanding borrowings under the Siena Revolver exceed the borrowing capacity, the Company is required to prepay borrowings sufficient to eliminate the excess. Any such expected prepayments to be made within 12 months have been classified as a current liability on the Company’s balance sheet. The Siena Revolver matures on April 10, 2028. Aggregate debt issuance costs incurred in connection with the Siena Revolver, including its amendments, were $1.6 million.
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.
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.
The Siena Revolver is collateralized by the Company’s accounts receivable, inventory balances and qualifying cash balances held with third-party payment processors. As of March 31, 2026, the Company has an outstanding principal balance of $7.5 million under the Siena Revolver with an interest rate of 8.12%. As of March 31, 2026, additional borrowing capacity from the Siena Revolver was $1.7 million. As of March 31, 2026, the Company had $0.5 million of unamortized debt issuance costs related to the Siena Revolver which are included within other long-term assets on the Company’s condensed consolidated balance sheets and are being amortized through the Siena Revolver’s scheduled maturity date. The Siena Revolver is the Company’s only debt facility as of March 31, 2026 and December 31, 2025.
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