Long-term Debt
| | | | | | | | | | | | | | | | | |
| | As of December 31, | |
| | 2021 | | 2020 | |
| | (In thousands) | |
| Commercial loan | | $ | 310 | | | $ | 620 | | |
| | 310 | | | 620 | | |
| | | | | |
| Less: Current portion | | (310) | | | (310) | | |
| Non-current portion | | $ | — | | | $ | 310 | | |
Aggregate maturities of long-term debt as of December 31, 2021 are as follows : | | | | | | | | | | | | | | |
| | (In thousands) | |
| 2022 | | $ | 310 | | |
| | $ | 310 | | |
On June 18, 2020, we financed the purchase of software licenses through a loan totaling approximately $0.9 million. The loan amortizes in three equal annual installments of approximately $0.3 million with the final payment due on October 1,
2022 with 0% interest rate. The loan is secured by a standby letter of credit issued from our financial institution and restricted cash has been recorded for the full loan amount borrowed.
The imputed interest of this loan was immaterial.
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.