At December $31,2024,$ Cordova Leather$$s liabilities include the following:

$$15\mathrm{.}8$ million of noncallable $9\%$ notes were issued for $$15\mathrm{.}8$ million on August $31,1994.$ The notes mature on July $31,2025.$ Sufficient cash is expected to be available to retire the notes at maturity.

$$30\mathrm{.}8$ million of $8\%$ notes were issued for $$30\mathrm{.}8$ million on May $31,2014.$ The notes mature on May $31,2027,$ but investors have the option of calling $($demanding payment on$)$ the notes on June $30,2025.$ However, the call option is not expected to be exercised, given prevailing market conditions.

$$18\mathrm{.}8$ million of $10\%$ notes are due on March $31,2026.$ A debt covenant requires Cordova to maintain current assets at least equal to $150\%$ of its current liabilities. On December $31,2024,$ Cordova is in violation of this covenant. Cordova obtained a waiver from Village Bank until June $2025,$ having convinced the bank that the company$$s normal $2$ to $1$ ratio of current assets to current liabilities will be reestablished during the first half of $2025.$