Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 12

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 the Presentation of Debt Issuance Costs, these costs are presented in the Condensed Consolidated Balance Sheets as a direct reduction from the carrying amount of the term loan liability

Line of Credit Agreement

On May 31, 2018, Avalon entered into a business loan agreement with Wesbanco Bank (formerly Premier Bank), (the “ Line of Credit Agreement”) which provides for a line of credit of up to $5.0million. On September 24, 2025, the Company amended the Line of Credit Agreement to extend the maturity date to July 31, 2027. Under the Line of Credit Agreement, borrowings in excess of $1.0 million are subject to a borrowing base which is calculated based off a specific level of eligible accounts receivable of the waste management business as defined in the agreement.

At September 30, 2025 and December 31, 2024, approximately $3.2million was outstanding under the Line of Credit Agreement. At September 30, 2025 and December 31, 2024, approximately $1.8million was available under the Line of Credit Agreement. Outstanding borrowings under the Line of Credit Agreement bear interest at Prime Rate plus.25%. At September 30, 2025, the interest rate on the Line of Credit Agreement was7.50%.

Borrowings under the Line of Credit Agreement are secured by certain business assets of the Company including accounts receivable, inventory and equipment. The Line of Credit Agreement contains a Fixed Charge Coverage Ratio requirement of at least1.20tested on an annual basis on December 31 of each year. The Line of Credit Agreement also contains other nonfinancial covenants, customary representations, warranties and events of default. Avalon was in compliance with the Line of Credit Agreements covenants at September 30, 2025 and December 31, 2024.

During the nine months ended September 30, 2025 and 2024, the weighted average interest rate on outstanding borrowings was6.17% and6.26%, respectively.

Obligations under the Company’s debt agreements at September 30, 2025 and December 31, 2024 consist of the following (in thousands):

                            September 30, 2025                                                                              
                            Gross Amount                        Debt Issuance Costs                 Net Amount              
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Term Loan Agreement       $                       29,