IZEA Worldwide, Inc.IZEA

IZEA Worldwide, Inc. Debt Disclosure

10-KFiled Mar 17, 20261 min read
NOTES PAYABLE
Finance Obligation
The Company purchases laptop computer equipment through installment payment arrangements with a third-party vendor, which are accounted for as financing obligations. The related equipment is recorded as fixed assets, and the corresponding liability is recorded at its present value using an imputed interest rate of 12.9%, which approximates the Company’s incremental borrowing rate. Interest expense is recognized over the term of the payment plans.
In connection with a refresh of a portion of its computer inventory, the Company entered into a three-year payment plan with the same vendor during 2022. As of December 31, 2025 and December 31, 2024, the outstanding balance under these financing arrangements was $9,106 and $63,420, respectively. The short-term portion of the obligation, totaling $9,106 and $59,386 as of December 31, 2025 and 2024, respectively, is included in accrued expenses in the consolidated balance sheets.
Interest expense related to these financing arrangements totaled $6,189 and $8,129 for the years ended December 31, 2025 and 2024, respectively, and is included in interest expense in the consolidated statements of operations and comprehensive loss.

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 27, 2025
2023Apr 1, 2024
2022Mar 31, 2023
2021Mar 31, 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.

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