Absolutely, and I appreciate the question.
This is not unique to EarthFresh Farms Inc.. When you have an operating facility for working capital purposes, a bank will lend and allow you to margin against your receivables, but they take security over your receivables. With that, when you do your calculation, they say, “Okay, back out your priority payables.” As I noted before, priority payables are payroll, withholding tax and pension costs, really minor costs that get deducted because businesses pay weekly or biweekly. This would create a situation that all the payables become a priority payable. It would fully get deducted off their operating base calculation and, for a lot of the businesses that focus on fresh fruits and vegetables, they would get ground down to zero.
As I mentioned, there are other sources of financing, unsecured sources of financing, but that's at a higher interest cost. We need to get full clarity from the banking industry as to how they would interpret it. It would be the situation throughout the entire value chain, the processor, the wholesaler, and potentially the retailer and food service. That's why we need full clarity on how they would calculate it and how they would interpret it from a borrowing base calculation.
It is such a material issue that we just need to bring it out in the open. I'm taking the time here to say let's get it right. It's a great opportunity. This bill can offer a lot of security and make the industry stronger, but let's just do it right and take our time.