| Schedule of Components of Debt |
The components of the Company’s debt are as follows:
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Effective Interest Rate |
Maturity Date |
September 30, 2026 (unaudited) |
|
December 31, 2025 |
| Principal amounts: |
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|
|
|
|
2026 Term Loan |
16% |
March 2029 |
$ |
160,000 |
|
|
$ |
— |
|
| Second Lien Notes |
n/a |
n/a |
— |
|
|
86,194 |
|
2024 Term Loan |
n/a |
n/a |
— |
|
|
46,075 |
|
| Acquisition-related promissory notes payable |
8% - 13% |
April 2027 |
23,514 |
|
|
28,337 |
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| Mortgage loans |
6% - 9% |
January 2027 - September 2030 |
32,096 |
|
|
32,470 |
|
| Total debt subject to scheduled repayments |
|
|
215,610 |
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|
193,076 |
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Promissory notes payable to Sammartino (1)
|
10% |
September 2024 - September 2026 |
21,500 |
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|
21,500 |
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| Total debt |
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|
237,110 |
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|
214,576 |
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| Less: debt issuance costs and original issue discounts |
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|
(10,271) |
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|
(8,742) |
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| Total debt, net |
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|
$ |
226,839 |
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|
$ |
205,834 |
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Debt, net - current portion (2)
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|
$ |
32,373 |
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|
$ |
6,639 |
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| Debt, net - non-current portion |
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$ |
194,466 |
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$ |
199,195 |
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(1)This amount is related to the promissory notes issued to Sammartino Investments LLC (“Sammartino”) in connection with the acquisition of Nature's Remedy of Massachusetts, Inc. (“Nature's Remedy”) in September 2021. The Company currently has no obligation to pay the principal and interest. See further discussion of the Sammartino Matter in Note 16 - Commitments and Contingencies for more information.
(2)The Company expects to satisfy its upcoming maturities through some combination of extensions, refinancing and/or capital market transactions, which could include the sale or other issuance of equity securities. Based on current discussions with existing lenders, financing sources and the Company’s historical ability to obtain capital, management believes the Company will be able to meet these upcoming maturities as they become due.
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| Schedule of Future Contractual Debt Maturities |
As of September 30, 2026, aggregate future scheduled repayments of the Company’s debt were as follows:
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Remainder of the year |
2027 |
2028 |
2029 |
2030 |
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Total |
2026 Term Loan |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
160,000 |
|
$ |
— |
|
|
$ |
160,000 |
|
| Acquisition-related promissory notes payable |
— |
|
23,514 |
|
— |
|
— |
|
— |
|
|
23,514 |
|
| Mortgage loans |
131 |
|
9,308 |
|
383 |
|
418 |
|
21,856 |
|
|
32,096 |
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| Total debt subject to scheduled repayments |
$ |
131 |
|
$ |
32,822 |
|
$ |
383 |
|
$ |
160,418 |
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$ |
21,856 |
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|
$ |
215,610 |
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| Schedule of Interest Expense |
Interest expense, net is comprised of the following:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
| Interest expense |
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| Interest and accretion - Second Lien Notes |
$ |
— |
|
|
$ |
3,421 |
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|
$ |
3,382 |
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|
$ |
9,914 |
|
Interest and accretion - 2024 Term Loan |
— |
|
|
2,981 |
|
|
2,814 |
|
|
9,101 |
|
Interest and accretion - 2026 Term Loan |
6,222 |
|
|
— |
|
|
12,623 |
|
|
— |
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| Interest and accretion - Finance lease liabilities |
2,853 |
|
|
2,602 |
|
|
7,957 |
|
|
7,600 |
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Interest and accretion - Promissory notes |
815 |
|
|
911 |
|
|
2,688 |
|
|
2,646 |
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| Interest and accretion - Mortgage loans and other financing activities |
628 |
|
|
618 |
|
|
1,871 |
|
|
1,825 |
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| Capitalized interest |
(115) |
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|
(149) |
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|
(361) |
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|
(254) |
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| Total interest expense |
10,403 |
|
|
10,384 |
|
|
30,974 |
|
|
30,832 |
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| Interest income |
(171) |
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|
(117) |
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|
(468) |
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|
(346) |
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| Total interest expense, net |
$ |
10,232 |
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|
$ |
10,267 |
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|
$ |
30,506 |
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|
$ |
30,486 |
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