Quarterly report [Sections 13 or 15(d)]

Short-term Debt

v3.25.1
Short-term Debt
3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Short-term Debt

7. Short-term Debt

 

On March 31, 2025 and December 31, 2024, the Company had a line of credit with Wells Fargo and Yamaha Motor Finance for $1,250,000 and $1,000,000, respectively.

 

Interest on the Company’s Wells Fargo line is calculated in two ways: the average daily balance is prime +5%, with a minimum prime at 5.5%, there is also a monthly flat charge of 0.2%, which, is 2.4% annualized. After the 150-day due in full period, the average daily balance rate goes up to prime +8.5% with no monthly flat charge. On March 31, 2025 and December 31, 2024 the interest rate on the line of credit was 12.26% and 11.13%.

 

Interest on the Company’s Yamaha line is calculated on the average daily balance +4%, with a minimum prime at 8.0%. On March 31, 2025 and December 31, 2024, the interest rate was 11.50% and 11.75%, respectively.

 

On March 31, 2025 and December 31, 2024, the outstanding balance with Wells Fargo was $190,330 and $130,690, respectively. On March 31, 2025 and December 31, 2024, the outstanding balance with Yamaha Motor Finance was $140,132 and $255,649, respectively. The outstanding balances are included in account payable on the condensed consolidated balance sheets.