|3 Months Ended|
Mar. 31, 2018
|Debt Disclosure [Abstract]|
Revolving Credit Facility
The Heritage Bank Loan Agreement contains representations and warranties, covenants, and other provisions customary to transactions of this nature. As of March 31, 2018, the Company was in compliance with all financial covenants. The outstanding principal balance of the Credit Facility bears interest at the Prime Rate plus 3.00%, which was 7.75% at March 31, 2018 and 7.50% at December 31, 2017. The outstanding balance on the Credit Facility was $622,852 and $682,211 at March 31, 2018 and December 31, 2017, respectively. The remaining available borrowing capacity was approximately $429,000 and $202,000 at March 31, 2018 and December 31, 2017, respectively.
On March 31, 2018, an amendment to the revolving credit facility with Heritage Bank was executed to amend certain terms of the Heritage Bank Loan Agreement. Among the terms of the amendment was that if the Company fails to comply with required EBITDA covenants as of any particular quarterly measurement date, the Company will be deemed to be in compliance as of the measurement date if the Company’s unrestricted cash maintained at Heritage Bank is in excess of $5,000,000.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef