Toppoint Holdings Inc. Debt Disclosure
NOTE 7: LOANS PAYABLE
Loans payable is summarized as follows:
| Description | Loan Date | Loan Amount | Interest Rate | Maturity Date | Remaining Principal Balance as of December 31, 2025 | Remaining Principal Balance as of December 31, 2024 | ||||||||||||||
| Maxus Machinery* | October 2025 | $ | 667,964 | 12.00 | % | October 2027 | $ | 592,927 | $ | |||||||||||
| Economic Injury Disaster Loan (“EIDL”)** | May 2020 | $ | 149,900 | 3.75 | % | May 2050 | 149,900 | 149,900 | ||||||||||||
| M&T Term Loan*** | May 2025 | $ | 328,500 | 6.09 | % | May 2030 | 295,011 | |||||||||||||
| 1,037,838 | ||||||||||||||||||||
| Less current maturities | 383,827 | |||||||||||||||||||
| Less unamortized debt issuance cost | 45,833 | |||||||||||||||||||
| $ | 608,178 | $ | 149,900 | |||||||||||||||||
| * | On October 1, 2025, the Company entered into a Truck Loan agreement with a third-party lender Maxus Machinery in the amount of $667,964. The loan bears interest at 12% per annum and is repayable in 24 equal monthly installments, beginning November 1, 2025. Upon execution of the agreement, the Company also paid a non-refundable legal and due diligence fee of $50,000. As security for the loan, the Company granted the lender a security interest in forty (40) adjustable and tandem-axle chassis identified by their respective vehicle identification numbers. In the event of default, the lender may accelerate the loan and take possession of the collateral. |
| ** | The EIDL was entered into during May 2020. Interest accrues at 3.75% per annum. Under the original agreement, principal payments were deferred, and the maturity date is May 2050. |
| *** | On May 8, 2025, the Company entered into a term loan with M&T Bank in the amount of $328,500. The loan bears interest at a rate of 6.09% and has monthly payments of principal and interest. The maturity date is May 2030 and is collateralized by the Company’s equipment. |
Interest expense on loans payable mentioned above amounted to $39,230 and $5,474 for the years ended December 31, 2025 and 2024, respectively. Amortization of debt issuance costs amounted to $4,167 for the year ended December 31, 2025.
At December 31, 2025, combined scheduled maturities of the outstanding debt are as follows:
| For the Periods Endings: | ||||
| 2026 | $ | 383,827 | ||
| 2027 | 333,361 | |||
| 2028 | 68,026 | |||
| 2029 | 72,287 | |||
| 2030 | 30,438 | |||
| Thereafter | 149,900 | |||
| $ | 1,037,838 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
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.