Subsequent Event

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

Fourth amendment agreement to the 2018 Credit and Security Agreement

On April 13, 2020 (the “Amendment Date”), the Company entered into a fourth amendment agreement (the “Fourth Amendment Agreement”) with KeyBank, Zions Bancorporation, N.A. dba Zions First National Bank, and MUFG Union Bank, N.A. as the lenders, and KeyBank as the administrative agent to amend the 2018 Credit and Security Agreement, as amended by the First Amendment Agreement, the Second Amendment Agreement, and the Third Amendment Agreement, to temporarily increase the revolving credit amount from $125,000 to $144,800 from the Amendment Date through March 31, 2021. Under the Fourth Amendment Agreement, interest rates have been revised to add an additional 50 basis points to the prior rates set forth in the 2018 Credit and Security Agreement, and the applicable interest rate is based on the Company's leverage ratio as defined in the Fourth Amendment Agreement.

In connection with the Fourth Amendment Agreement, the Company paid approximately $257 in debt issuance costs.

Small Business Administration loan under the CARES Act

On April 13, 2020, the Company entered into a loan agreement with KeyBank as the lender under the Paycheck Protection Program of the CARES Act administered by Small Business Administration, and on April 17, 2020 (the “Disbursement Date”), received a loan in the amount of $9,444 (the “PPP Loan”) to help sustain its employee payroll costs, rent, and utilities due to the impact of the recent COVID-19 pandemic. The interest rate for the PPP Loan is 1% per annum, and all required payments are deferred for six months from the PPP Loan Disbursement Date (the interest will continue to accrue over this six-month deferral period). Once the deferral period is over, the Company must pay $525 of the principal every month, as well as accumulated interest, until the PPP Loan's maturity date of two years from the PPP Loan Disbursement Date. The Company may also potentially obtain loan forgiveness for the PPP Loan if the Company meets certain requirements, as defined by the CARES Act. There can be no assurance that the Company will obtain forgiveness of the PPP Loan.

Company's operational response to COVID-19

In December 2019, a mutated strain of coronavirus was reported to have surfaced in Wuhan, China. The outbreak, which had previously been concentrated in China, has largely spread through the world, including the United States. The pandemic has resulted in federal, state, and local restrictions, requiring or recommending social distancing, travel bans, quarantines and other restrictions. Additionally, concerns regarding the spread and ultimate human and economic impacts have caused significant downturns in global economic activity. In response to such conditions, in addition to the increase in the borrowing capacity under the 2018 Credit and Security Agreement and the funds received from the PPP Loan discussed above, the Company took the following additional proactive measures after March 31, 2020 to provide enhanced financial flexibility:

•Implemented furloughs or lay-offs of approximately 20% of U.S. employees and reduced our Europe and Asia Pacific staff, excluding China, by approximately 20%. Employees on furlough retain their health insurance coverage throughout the furlough;

•Temporarily reduced salaries, including a 15% reduction for its Chief Executive Officer, 10% reductions for the rest of the executive team and 5% reductions for senior management;

•Temporarily reduced the cash portion of the Board of Directors’ compensation by 15% and replaced such compensation with stock-based compensation;

•Significantly reduced marketing spend throughout the remainder of 2020;

•Deferred or cancelled spending on all non-essential projects;

•Delayed or cancelled certain purchase orders to align with our adjusted demand forecast; and

•Limited travel of employees internationally and domestically throughout the remainder of 2020