When does Gold Star's first line of credit mature?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
and | No Registration | | Minnesota | No Registration | | New York | No Registration | | North Dakota | No Registration | | Rhode Island | No Registration | | South Dakota | No Registration | | Virginia | No Registration | | Washington | No Registration | | Wisconsin | No Registration | Amortization of these costs was $13,492, $13,146, and $12,973 for the years ended December 31, 2024, 2023, and 2022, respectively. Estimated amortization for the subsequent five years and thereafter is as follows:
| 2025 | $ 13,493 | |------------------------------|--------------| | 2026 | 13,493 | | 2027 | 13,493 | | 2028 | 13,493 | | 2029 | 13,493 | | Thereafter | 8,993 | | | $ 76,458 | In accordance with Accounting Standards Update (ASU) 2015-03 Subtopic 835-30, these costs are now shown on the consolidated balance sheets as a reduction of the loans to which they apply.
NOTE 10 - LINES OF CREDIT
The Company has a $1,750,000 line of credit with a bank. This line of credit is collateralized by a blanket lien on all of the Company's general business assets and charges interest at the Term Secured Overnight Financing Rate (SOFR) plus 2.20% (the Term SOFR was 4.49% at December 31, 2024). The amount utilized was $-0-, $92,581, and $
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company has a $1,750,000 line of credit with a bank. This line of credit is secured by a blanket lien on Gold Star's general business assets and accrues interest at the Term Secured Overnight Financing Rate (SOFR) plus 2.20%. As of December 31, 2024, the Term SOFR was 4.49%.
The amount utilized from this line of credit was $-0- at December 31, 2024, $92,581 at December 31, 2023, and $1,681,630 at December 31, 2022. This particular line of credit matures in August 2025. The line of credit is subject to certain financial covenants, all of which were either waived or met at December 31, 2024.
Gold Star also has another draw line of credit with the same bank, specifically for capital expenditures. This line is also collateralized by a blanket lien on the company's general business assets and carries an interest rate of Term SOFR plus 2.35% (Term SOFR at 4.49% as of December 31, 2024). The amount utilized was $1,500,000, $802,996, and $-0- at December 31, 2024, 2023, and 2022, respectively. Principal payments of $8,334 are due monthly beginning in January 2025, with a balloon payment due upon maturity in August 2028. This second line of credit is also subject to certain financial covenants, all of which were either waived or met at December 31, 2024.