Debt Obligations

3 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Debt Obligations

On July 14, 2015, we entered into an Amended and Restated Facility Agreement (the “Amended Facility Agreement“) with Conrent Invest S.A. (“Conrent“) to amend certain provisions of the Company’s existing $25.0 million unsecured debt facility. Pursuant to the terms and conditions of the Amended Facility Agreement, effective June 30, 2015, the Company may now borrow an additional $5.4 million of unsecured debt, which, together with the existing $25.0 million of unsecured debt borrowed under the debt facility, will now accrue interest at a rate of 8% per annum and mature on July 31, 2018. The Amended Facility Agreement also provides the Company with a voluntary prepayment option, wherein the Company may pay the amounts borrowed under the debt facility, including all accrued but unpaid interest, prior to the maturity date without any penalty or prepayment fee. In connection with the execution of the Amended Facility Agreement, the Company used the available $5.4 million under the facility agreement to pay to Conrent an arrangement fee of $500,000, as well as $822,222 of accrued but unpaid interest. During the year ended September 30, 2015, the Company received the remaining $4.08 million from this Facility Agreement.

On September 25, 2015, the Company entered into a Loan Agreement (the “Loan Agreement“) with one of the Company’s related parties, Sapinda Asia Limited (“Sapinda“) to provide the Company with a $5.0 million line of credit that accrues interest at a rate of 3% per annum for undrawn funds and 8% per annum for borrowed funds. Pursuant to the terms and conditions of the Loan Agreement, available funds may be drawn down at the Company’s request at any time until the Loan Agreement matures on September 30, 2017 (the “Maturity Date“), when all borrowed funds, plus all accrued but unpaid interest will become due and payable. The Company, however, may elect to satisfy any outstanding obligations under the Loan Agreement prior to the Maturity Date without penalties or fees.

 Debt obligations as of December 31, 2015 and September 30, 2015, respectively, are comprised of the following: 

	December 31,			September 30,
	2015			2015
Unsecured facility agreement of up to $30.4 million bearing interest at a rate of 8% per annum, with all principal and accrued and unpaid interest due on July 31, 2018. An orgination fee was paid, recognized as a debt discount and is being amortized as interest expense over the term of the loan. As of December 31, 2015, the remaining debt discount was $576,014.	$	29,823,986		$	29,768,243
Related party unsecured line of credit whereby the Company can borrow up to $5 million at 8% per annum on borrowed funds maturing on September 30, 2017.		-			-
The Company entered into an agreement whereby the Company was granted a non-exclusive, irrevocable, perpetual and royalty-free license to certain patents with an entity. The Company agreed to pay $4,500,000 over two years or $187,500 per month through February 2016.		375,000			937,500
Capital lease of office equipment maturing in August 2019.		22,679			24,754
Non-interest bearing notes payable to a governmental agency assumed in conjunction with the G2 acquisition.		224,606			254,917
Total debt obligations		30,446,271			30,985,414
Less current portion		(224,506	)		(796,225	)
Long-term portion of related party debt		-			-
Long-term debt, net of current portion	$	30,221,765		$	30,189,189

The following table summarizes the Company’s future maturities of debt obligations, net of the amortization of debt discounts as of December 31, 2015:

Fiscal Year	Total
2016		431,122
2017		65,428
2018		30,452,787
2019		40,125
2020		31,234
Thereafter		1,589
Debt discount		(576,014	)
Total	$	30,446,271

In connection with the TGA Acquisition, as described in Note 8 above, the Company assumed three notes payable to the Atlantic Canada Opportunities Agency (“ACOA“). These notes are non-interest bearing notes and are payable in monthly increments ranging from $3,125 to $4,125, as specified in each of the notes.