Byrna Technologies Inc. Debt Disclosure
| 12. | LINES OF CREDIT |
On January 19, 2021, the Company entered into a $5.0 million revolving line of credit with a bank. The revolving line of credit bore interest at a rate equal to the Wall Street Journal Prime Rate plus 0.50%, subject to a floor of 4.00%. The revolving line of credit was secured by the Company’s accounts receivable and inventory. The line of credit was subject to an unused fee of 0.25% paid once annually. The line of credit expired on January 19, 2024.
Also on January 19, 2021, the Company entered into a $1.5 million equipment financing line of credit with a bank. The line of credit bore interest at a rate equal to the Wall Street Journal Prime Rate plus 0.50%, subject to a floor of 4.00%. The line of credit was secured by the Company’s equipment. The line of credit was subject to an unused fee of 0.25% paid once annually. The line of credit expired on January 19, 2024.
As of November 30, 2024 there was no line of credit in place. As of November 30, 2023, there was no outstanding balance on the revolving line of credit and the Company had not drawn on the equipment financing line of credit. Debt issuance costs related to the lines of credit were $0.1 million. Debt issuance costs of $0.1 million were amortized over the term of the debt and are presented as part of Other Assets in the Consolidated Balance Sheets. Amortization of less than $0.01 million and $0.03 million for the years ended November 30, 2024 and 2023 is included in Interest income, net in the Consolidated Statements of Operations and Comprehensive Income (Loss).
The revolving line of credit and equipment financing line of credit were terminated on January 19, 2024 and not renewed.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 7, 2025 | Showing above |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | May 18, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Feb 29, 2016 | |
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.