Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 10

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 10
---
,078       2,660  
  Less: current portion of obligations under leases          362            363         725  
  Long-term portion of obligations under leases           $1,220           $715      $1,935  

Note 8. Basic and Diluted Net Income per Share

Basic net income per share attributable to Avalon Holdings Corporation common shareholders is computed by dividing the net income by the weighted average number of common shares outstanding. For both the three and nine months ended September 30, 2025 and 2024, the weighted average number of common shares outstanding was3,899,431.

Diluted net income per share attributable to Avalon Holdings Corporation common shareholders is computed by dividing net income attributable to Avalon Holdings Corporation common shareholders by the weighted average number of common shares outstanding plus any weighted common equivalent shares determined to be outstanding during the period using the treasury method. Weighted common equivalent shares, if any, included in the calculation are related to stock options granted by Avalon where the weighted average market price of Avalon’s common stock for the period presented is greater than the option exercise price of the stock option.

For the both the three and nine months ended September 30, 2025 and 2024 there werenooutstanding options. Therefore, no weighted common equivalent shares are included in the calculation, thus, no dilution.

Note 9. Term Loans and Line of Credit Agreements

2022 Term Loan Agreement

On August 5, 2022, Avalon and certain direct and indirect wholly owned subsidiaries entered into a loan and security agreement (the “2022 Term Loan Agreement”) with Laurel Capital Corporation which provided for a $31.0million term loan. At closing, $20.2million of the proceeds were used to pay off and refinance amounts outstanding and associated interest under our 2019 Term Loan Agreement with Laurel Capital Corporation and $0.4million of the proceeds were utilized to pay transaction costs. The remaining proceeds of approximately $10.4million were deposited into a project fund account for which those proceeds are to fund future costs of renovating and expanding both The Grand Resort and Avalon Field Club at New Castle. The balance of “ Restricted Cash” is $8.7million and $9.0million at September 30, 2025 and December 31, 2024, respectively, and presented in the Consolidated Balance Sheets. The monies are earning nominal interest.

The 2022 Term Loan Agreement is payable in119equal