BORROWINGS
Vendor financing arrangements—The Company has various vendor financing arrangements with extended payment terms on the purchase of software licenses and equipment. In order to determine the present value of the commitments, the Company used an imputed interest rate of 10.0%, which is an estimate based on the Company’s collateralized borrowing rate.
Expected cash flows related to vendor financing arrangements as of December 31, 2025, were as follows (in thousands):
Fiscal year ending December 31,Amount
2026$1,241 
2027500 
Total undiscounted cash flows
1,741 
Less: Imputed interest
(123)
Present value of vendor financing arrangements
$1,618 
Vendor financing arrangements, current
$1,166 
Vendor financing arrangements, noncurrent
452 
$1,618 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Mar 1, 2023
2021Mar 7, 2022

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.