| NOTE 20 – HEDGE ACCOUNTING As of December 31, 2025 the Company held interest rate derivatives in the total notional amount $32.2 million (AU$50.0 million). As of December 31, 2024, the Company held interest rate derivatives in the total notional amount $33.0 million (AU$50.0 million). The derivatives are recorded on the balance sheet at fair value and are included in the following line items. We have no derivatives in asset positions: | | | | | | | | | | | | | Liability Derivatives | | | December 31, | | | 2025 | | 2024 | (Dollars in thousands) | | Balance sheet location | | Fair value | | Balance sheet location | | Fair value | Interest rate contracts | | Derivative financial instruments - current portion | | $ | 56 | | Derivative financial instruments - current portion | | $ | — | | | Derivative financial instruments - non-current portion | | | — | | Derivative financial instruments - non-current portion | | | 137 | Total derivatives designated as hedging instruments | | | | $ | 56 | | | | $ | 137 | Total derivatives | | | | $ | 56 | | | | $ | 137 |
The changes in fair value are recorded in Other Comprehensive Income and released into interest expense in the same period(s) in which the hedged transactions affect earnings. In 2025 and 2024, the derivative instruments affected Comprehensive Income as follows: | | | | | | | | | (Dollars in thousands) | | Location of Loss Recognized in Income on Derivatives | | Amount of Loss Recognized in Income on Derivatives | | | | | | 2025 | | | 2024 | Interest rate contracts | | Interest expense, net | | $ | 72 | | $ | — | Total | | | | $ | 72 | | $ | — |
| | | | | | | | | | | | | | | | | | | | | | | | | Loss Recognized in OCI on Derivatives (Effective Portion) | | Loss Reclassified from OCI into Income (Effective Portion) | | Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (Dollars in thousands) | | Amount | | Line Item | | Amount | | Line Item | | Amount | | | 2025 | | 2024 | | | | 2025 | | 2024 | | | | 2025 | | 2024 | Interest rate contracts | | $ | (18) | | $ | 137 | | Interest expense, net | | $ | (71) | | $ | — | | Interest expense, net | | $ | — | | $ | — | Total | | $ | (18) | | $ | 137 | | | | $ | (71) | | $ | — | | | | $ | — | | $ | — |
As of December 31, 2025, we expect to release $54,000 to earnings.
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