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Long-Term Debt
6 Months Ended
Jun. 30, 2015
Long-Term Debt [Abstract]  
Long-Term Debt

NOTE 6 — LONG-TERM DEBT

 

On October 31, 2014, we renewed our $5.0 million Loan and Security Agreement (the “Revolving Facility”).  The $5.0 million Revolving Facility bears interest at the greater of 2.75% or the U.S.A. Prime Rate minus one half of one percent (0.5%).  Prime Rate was 3.25% as of June 30, 2015.  The Revolving Facility is secured by all assets of Evolving Systems, including a pledge, subject to certain limitations with respect to stock of foreign subsidiaries, of the stock of the existing and future direct subsidiaries of Evolving Systems.  There is no mandated borrowing required against the Revolving Facility.  To take an advance under the Revolving Facility, we must have a balance of $3.0 million in cash on deposit and have quarterly net income and a specified ratio of current assets to current liabilities, as defined in the Revolving Facility.  The Revolving Facility requires us to pay an annual credit facility fee of $10,000.  All accrued interest on outstanding borrowings under the Revolving Facility is paid monthly, with any outstanding balance due with a final maturity of October 22, 2016.  As of June 30, 2015, we are in compliance with the covenants and have $5.0 million available under this Revolving Facility.  We are evaluating the Company’s need and potential uses for the facility, in the course of managing the company’s ongoing liquidity requirements.