NOTE 10 — LONG-TERM BORROWINGS

Long-term borrowings consisted of the following:

  ​ ​ ​

December 31, 

  ​ ​ ​

December 31, 

2025

2024

Small Business Administration(1)

$

456,063

$

468,542

Thread Capital Inc.(2)

 

152,492

 

176,055

Total long-term borrowings

$

608,555

$

644,597

Current portion of long-term borrowings

$

35,902

$

34,577

Non-current portion of long-term borrowings

$

572,653

$

610,020

(1)

On May 24, 2020, the Company entered into a loan agreement with the U.S. Small Business Administration (the “SBA”), an agency of the U.S. Government, to borrow $150,000 for 30 years, with a maturity date of May 23, 2050. Under the terms of the SBA loan, the loan proceeds are used as working capital to alleviate economic injury caused by the COVID-19 pandemic. The loan bears a fixed interest rate of 3.75% per annum. Beginning 12 months from the date of this loan agreement, the Company is required to make a monthly installment payment of $731 within the term of loan, with the last installment to be paid in May 2050. On March 16, 2022, the Company entered into an amended agreement with SBA to borrow an additional $350,000 for 30 years as working capital to alleviate economic injury caused by the COVID-19 pandemic. In the aggregate, the Company’s borrowings amounted to $500,000 with a maturity date of May 23, 2050. The amended loan bears a fixed interest rate of 3.75% per annum. Beginning from

March 2022, 24 months from the date of the original loan agreement, the Company is required to make a new monthly installment payment of $2,485 within the remaining term of loan, with the last installment to be paid in May 2050.

The future maturities of the SBA loan as of December 31, 2025 were as follows:

Fiscal Years

  ​ ​ ​

Future repayment

2026

$

11,474

2027

 

11,942

2028

 

12,429

2029

 

12,937

Thereafter

 

407,281

Total

$

456,063

(2)

On May 15, 2020, the Company entered into a loan agreement with Thread Capital Inc. (“Thread Capital”) to borrow $50,000 as working capital with a maturity date of November 1, 2024. The loan bore a fixed interest rate of 5.50% per annum. This loan agreement was subsequently terminated on May 17, 2021, at which time the Company entered into a new loan agreement with Thread Capital to borrow an additional $171,300 as working capital. In the aggregate, the Company’s borrowings from Thread Capital amounted to $221,300 with a maturity date of May 1, 2031. Interest is payable at a fixed annual interest rate of 0.25% between September 1, 2021 and November 30, 2022. Beginning from December 1, 2022, the loan bears a fixed annual interest rate of 5.5%, and the Company is required to make a monthly installment payment of $2,721 within the remaining term of loan, with the last installment to be paid in May 2031.

The future maturities of the loan from Thread Capital as of December 31, 2025 were as follows:

Fiscal Years

  ​ ​ ​

Future repayment

2026

$

24,881

2027

 

26,285

2028

 

27,768

2029

 

29,334

Thereafter

 

44,224

Total

$

152,492

For the above-mentioned long-term borrowings, the Company recorded interest expenses of $26,436 and $29,462 for the years ended December 31, 2025 and 2024, respectively.

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Historical Timeline

Fiscal YearFiled
2025Mar 20, 2026Showing above
2024Mar 12, 2025
2023Mar 18, 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.