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Short-Term Debt
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Short-Term Debt

Note Five — Short-Term Debt

On March 25, 2016, the Company amended its credit facility with Silicon Valley Bank. The amended credit facility provides for, among other things, a revolving line of credit to the Company with a maximum credit limit of $15 million and a $6 million term loan. The amended credit facility replaces the existing financial covenants with a requirement that (a) the Company achieve specified free cash flow targets, as defined under the amended credit facility, measured quarterly commencing in the quarter ending March 31, 2016, and (b) the Company maintain unrestricted cash on deposit with Silicon Valley Bank that, when added to the unused availability under the revolving line of credit, equals or exceeds $17.0 million. The maximum available amount under the revolving line of credit is the lesser of $15.0 million or three times the most recent month’s monthly recurring revenue. The revolving line of credit has a term through March 31, 2018 and an interest rate of the prime rate plus 1.25%. In respect of the revolving line of credit, the amended credit facility additionally provides for an annual commitment fee of $0.1 million and an early termination fee of 1.0% of the outstanding principal amount of the revolving line of credit in the first year of its term and 0.25% of the outstanding principal amount of the revolving line of credit thereafter, prior to maturity. There was less than $0.1 million of interest expense in respect of the revolving line of credit for the three months ended March 31, 2016 and March 31, 2015. The interest rate for the revolving line of credit for the three months ended March 31, 2016 was 4.75%. The Company has $9.2 million outstanding on the revolving line of credit as of March 31, 2016. The Company was in compliance with all of its debt covenants under the amended credit facility as of March 31, 2016.