Long‑Term Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long‑Term Debt

Term and Revolving Loans

In March 2018, the Company entered into an Amended and Restated Loan and Security Agreement with Pacific Western Bank (successor in interest to Square 1 Bank). The agreement amends and restates in its entirety the Company's previous Loan and Security Agreement with Pacific Western Bank, dated March 13, 2014. The loan facility provides for up to $25.0 million in aggregate commitments, including a term loan of up to $15.0 million term loan and a revolving loan facility equal to the lesser of (i) $25.0 million minus the unpaid principal amount of the term loan and the amount of any reserves for ancillary banking services, or (ii) a borrowing base equal to 85% of eligible accounts receivable plus the lesser of $5.5 million or 35% of eligible inventory. The principal amount of the term loan will be repaid in thirty-six equal monthly installments beginning on July 14, 2018 with all outstanding principal and interest on the revolving loan due and payable on July 14, 2019.

The term and revolving loans bear interest at a rate equal to the bank’s prime rate plus 0.50% per annum, subject to a floor of 5.00% per annum. Interest is due and payable monthly in arrears.

The Company’s loan with Pacific Western Bank is secured by liens, subject to certain exceptions, on substantially all of the Company’s existing and future assets, including but not limited to accounts receivable, inventory, property and equipment, and intellectual property.

In relation to the Pacific Western Bank loan, the Company is required to comply with, among other covenants, a minimum revenue covenant and to stay below a maximum capital expenditure level. The Company was in compliance with all of its financial covenants as of March 31, 2018 and December 31, 2017.

The term loan balance was $13.5 million at March 31, 2018 and December 31, 2017. The revolving loan balance was $3.7 million at March 31, 2018 and December 31, 2017, respectively.

Long‑term debt at March 31, 2018 and December 31, 2017 consists of the following:

	March 31,			December 31,
(in thousands)	2018			2017
2014 Pacific Western Bank, Term and Revolving Loans	$	17,200		$	17,200
2014 Finland equipment loans, Danske Bank, 3-5 year terms, EURIBOR plus 1.7%	73			80
Capital leases, various	176			191
Total debt	17,449			17,471
Less: current portion of long-term debt	(3,491		)	(2,363		)
Noncurrent portion of long-term debt	$	13,958		$	15,108