CALLAN JMB INC. Debt Disclosure
NOTE 5 – DEBT
The Company’s debt is comprised of the following:
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Finance Agreement - insurance premiums | $ | 0 | $ | 98,809 | ||||
During the normal course of business, the Company enters into short-term finance agreements for their insurance premiums. The agreement bears interest at 14.3% per annum for year ending December 31, 2024 and 2023, respectively. Interest expense incurred for the year ended December 31, 2024 and 2023 are $5,372 and $8,131, respectively. The Company did not finance its premiums for 2024.
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.