Note 5 - Note Payable
|3 Months Ended|
Mar. 31, 2017
|Notes to Financial Statements|
|Debt Disclosure [Text Block]||
2016,we entered into a Loan and Security Agreement, as amended
“2016Loan Agreement”) with Western Alliance Bank (“WAB”), pursuant to which WAB agreed to loan us up to an aggregate of
$2,500,000.The funding conditions for both tranches were satisfied as of the closing date, and therefore, the aggregate principal amount of
$10,000,000was provided to us on
2016.The proceeds received were used to repay the outstanding existing indebtedness and the remaining balance was used for working capital purposes and to fund general business requirements. The borrowings are repayable in interest only payments until
30monthly equal installments of principal and interest. The term loan bears interest on the outstanding obligations under the loan at a floating per annum rate equal to the greater of (i) the Index Rate (i.e., the
30day U.S. LIBOR rate reported in the Wall Street Journal) plus
6.96%,determined as of the last day of each month, and (ii)
7.40%.The interest rate for the note payable with WAB was
In connection with the
2016Loan Agreement, we issued a
10-year warrant to the WAB to purchase a total of
100,402shares of the Company’s common stock at an exercise price of
$4.98per share (See Note
The Company is also required to meet certain financial and other covenants in connection with the
2016Loan Agreement. These covenants include actual performance to plan revenue of not less than
80%which is not required to be complied with if the Company maintains a ratio of unrestricted cash with WAB to indebtedness of at least
1.00.In addition, the Company must at all times maintain unrestricted cash in accounts with WAB in an amount equal to or greater than
$2,000,000,which financial covenant shall no longer apply at such time that the Company achieves a ratio of minimum unrestricted cash in accounts with WAB to indebtedness of at least
2017,the Company was in compliance with all covenants.
In addition to all outstanding principal and accrued interest on the term loan, the Company shall pay a final payment fee equal to
4.00%of the original principal amount of the term loan.
All borrowings under the
2016Loan Agreement are collateralized by substantially all of the Company’s assets, including intellectual property.
2017,future minimum payments under the note payable are as follows (in thousands):
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://www.xbrl.org/2003/role/presentationRef