ONE STOP SYSTEMS, INC.OSS

ONE STOP SYSTEMS, INC. Debt Disclosure

10-KFiled Mar 18, 20264 min read

NOTE 9 – DEBT

 

The Company did not have any outstanding debt obligations as of December 31, 2025.

 

As of December 31, 2024, the Company's Bressner subsidiary had outstanding debt obligations of $1,035,050 on two lines of credit. These obligations are included within discontinued operations on the Company's consolidated financial statements for the year ended December 31, 2024.

 

Upon completion of the sale of the Bressner business on December 30, 2025, the buyer assumed all debt obligations of Bressner.

 

Bank Lines of Credit

 

In April 2022, the Company obtained a domestic revolving line of credit of $2,000,000 at Torrey Pines Bank. To access this line of credit, the Company must maintain a minimum cash balance of $2,500,000 with the bank and maintain a maximum debt to tangible net worth of ratio of 1.00. The line of credit is also collateralized by the assets of the Company.

 

On September 16, 2025, the Company borrowed $500,000 on this line of credit, and on September 22, 2025, the Company borrowed an additional $500,000. Interest was accrued at a rate of 7.5% through September 17, 2025 and at a rate of 7.25% beginning on September 18, 2025. On October 1, 2025, the Company repaid all outstanding principal and accrued interest on the line of credit. The maximum balance outstanding on this line of credit during the years ended December 31, 2025 and December 31, 2024 was $1,000,000. Total interest paid related to borrowings on the Torrey Pines line of credit was $2,424.

 

No balance was outstanding on December 31, 2025 or December 31, 2024.

 

As of the date of divestiture, Bressner had three revolving lines of credit with German institutions, including Uni Credit Bank AG, Commerzbank AG, and VR Bank, with total availability of up to €3,200,000 (US $3,767,283) as of December 30, 2025. Borrowings under the lines of credit bear interest at a variable rate of Euribor plus a stated rate. The rates as of December 30, 2025, for the lines of credit ranged from 3.75% to 6.55%, with the balances remaining open indefinitely or until occurrence of a defined change of control event. Bressner had no outstanding lines of credit balances as of December 30, 2025 or December 31, 2024.

 

Foreign Debt Obligations

 

As of the divestiture date of December 30, 2025, Bressner had two term loans outstanding, with an aggregate balance outstanding of €1,000,000 (US$1,177,276) as follows:

•
As of December 31, 2023, Bressner had an outstanding note payable with UniCredit Bank for €500,000 with a maturity date of June 19, 2024 at an interest rate of 5.8%. On June 19, 2024, this note was extended through December 19, 2024, with accrued interest having been paid as current as of June 19, 2024 and the interest rate was reduced to 5.55%. The note was extended again to June 20, 2025 at an interest rate of 4.40%, with accrued interest having been paid current as of June 19, 2024. On June 19, 2025, the note was extended to December 22, 2025 at an interest rate of 3.75%, with accrued interest having been paid as current. On December 22, 2025, the note was further extended to March 23, 2026 at an interest rate of 3.8%, with accrued interest having been paid as current. The balance outstanding on the note as of the date of the divestiture on December 30, 2025 was €500,000 ($588,638). The balance outstanding on the note as of December 31, 2024 was €500,000 ($517,525).
•
As of December 31, 2023, Bressner had an outstanding note payable with Commerzbank AG for €500,000 with a maturity date of March 28, 2024 and an interest rate of 5.75%. On March 28, 2024, this note was extended through September 30, 2024, and the interest rate was reduced to 5.50%, with accrued interest having been paid current as of March 28, 2024. On September 30, 2024, the note was extended to March 31, 2025 at a rate of 4.75%, with the accrued interest having been paid through September 30, 2024. On March 31, 2025, the note was extended through September 30, 2025 and the interest rate was reduced to 3.9%, with accrued interest having been paid as current as of March 31, 2025. On September 30, 2025, the note was further extended through March 31, 2026 and the interest rate was further reduced to 3.5%, with accrued interest having been paid as current. The balance outstanding on the note as of the date of divestiture on December 30, 2025 was €500,000 ($588,638). The balance outstanding on the note as of December 31, 2024 was €500,000 ($517,525).

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Mar 19, 2025
2023Mar 21, 2024
2022Mar 23, 2023
2021Mar 24, 2022
2020Mar 25, 2021
2019Mar 26, 2020
2018Mar 21, 2019

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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