10. Long-term Debt

 

On March 1, 2021, the Company assumed the outstanding long-term debt obligations of an acquired business and issued a seller note to one of the selling stockholders. The assumed debt obligations and seller note are denominated in Euros.

 

Long-term debt consists as follows:

 

  

As of September 30,

 
  

2024

  

2023

 

Term loan payable, accruing interest at 3-Month EURIBOR plus 1.3% per annum, payable in quarterly installments starting in April 2023 and matures in July 2028.

 $325  $385 

Seller’s note payable (“Seller’s note”), due to one of the selling stockholders, accruing interest at a fixed rate of 4.0% per annum. The Seller’s note is payable over 5 installments and matures in September 2025.

  201   317 

Total debt

  526   702 

Less current portion:

  (282)  (267)

Long-term debt, net of current portion

 $244  $435 

   

At September 30, 2024, future maturities of long-term debt are as follows:

 

Fiscal year:

    

2025

 $282 

2026

  81 

2027

  81 

2028

  82 

Total debt

 $526 

 

Historical Timeline

Fiscal YearFiled
2024Dec 26, 2024Showing above
2023Dec 27, 2023
2022Dec 21, 2022
2021Dec 20, 2021
2020Dec 23, 2020
2019Dec 27, 2019
2018Dec 28, 2018

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.