Debt |
3 Months Ended | ||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||
| Debt |
(6) Debt
Bank Line of Credit
On December 10, 2021, the Company entered into a Securities-Based Line of Credit, Promissory Note, Security, Pledge and Guaranty Agreement (the “Line of Credit”) with City National Bank of Florida. Pursuant to the revolving Line of Credit, the Company may borrow up to the Credit Limit, determined from time to time in the sole discretion of the Bank. The Credit Limit was approximately $1.0 million and $3.0 million at March 31, 2023, and December 31, 2022, respectively. Outstanding borrowings were $1.0 million and $1.0 million as of March 31, 2023, and December 31, 2022, respectively. To secure the repayment of the Credit Limit, the Bank will have a first priority lien and continuing security interest in the securities held in the Company’s investment portfolio with the Bank. The amount outstanding under the Line of Credit shall bear interest equal to the Reference Rate plus the Spread (as defined in the Line of Credit) in effect each day. Interest is due and payable monthly in arrears. The interest rate on the Line of Credit was 6.25% at March 31, 2023, and 5.75% at December 31, 2022. The Bank may, at any time, without notice, and at its sole discretion, demand the repayment of the outstanding.
Vehicle Loans
The Company has entered into various loans for the purchase of vehicles in the ordinary course of business. Each loan is secured by the vehicle that is financed. One of the lenders has provided a commercial line of credit of $4.0 million, under which approximately $2.6 million and $2.4 million remained available as of March 31, 2023 and December 31, 2022, respectively, for the financing of vehicles under retail installment contracts through May 31, 2023. The vehicle loans under the commercial line of credit and from other sources have interest rates that range from 3.5% to 9.0% (primarily 3.5%).
Maturities of debt as of March 31, 2023, are as follows:
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