Long-Term Debt and Other Short-Term Borrowings
|3 Months Ended|
Mar. 31, 2023
|Long-Term Debt and Other Short-Term Borrowings|
|Long-Term Debt and Other Short-Term Borrowings||
Note 11. Long-Term Debt and Other Short-Term Borrowings
Long term debt and other short-term borrowings consisted of the following at March 31, 2023 and December 31, 2022:
Principal maturities of long-term debt for the next five years and thereafter are as follows:
Bank Credit Facility
Simson-Maxwell has an operating credit facility with TD Bank, secured by accounts receivable and inventory, bearing interest at prime plus 2.25% on Canadian funds up to CAD $5,000,000 and the bank’s US dollar base rate plus 2.25% on US funds, plus a monthly administration fee of CAD 500. The balance outstanding under this credit facility is CAD $4,638,917 ($3,429,485) and CAD $4,139,785 ($3,111,350) as of March 31, 2023 and December 31, 2022, respectively.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef