Long-Term Debt

Long-term debt consists of the following (in thousands):



	December 31,
	2014			2013
Line of credit	$	18,166		$	18,162
Short-term financing	4,343			2,641
Various notes payable	2,431			4,521
Total long-term debt	24,940			25,324
Less current portion of long-term debt and short-term financing	(5,352		)	(22,566		)
Long-term debt and line of credit, net of current portion	$	19,588		$	2,758

(a) Line of Credit

The Company is party to an amended loan agreement with a bank under which it may make periodic borrowings under a revolving line of credit (the Line of Credit). The Line of Credit contains various restrictive covenants, including limitations on the Company’s ability to pay dividends, enter into a merger or acquisition and the amount of capital expenditures the Company may make in any given fiscal year. In May 2014, the Company entered into an amendment, effective in April 2014, to the Line of Credit that, among other things: (1) increased the revolving line of credit from $19.0 million to $25.0 million, (2) amended the interest rate from the bank’s prime rate plus 2.0% to the bank’s prime rate plus 0.25% or, if the Company’s trailing four-quarter EBITDA exceeds $5.0 million, LIBOR plus 2.5%, (3) eliminated a requirement that the Company maintain a minimum cash balance with the bank, (4) replaced the $12.5 million minimum net worth covenant with a $50.0 million tangible net worth covenant (unless the Company maintains a minimum cash balance of $20.0 million, in which case the covenant is waived) and (5) extended the maturity date from April 25, 2014 to April 29, 2016. The bank has the right to reset the tangible net worth covenant annually, beginning February 28, 2015.

As of December 31, 2014 and 2013, the Company was in compliance with all covenants under the Line of Credit. The Company’s interest rate on borrowings under the Line of Credit was 3.5% and 5.25% at December 31, 2014 and 2013, respectively.

In connection with the initial Line of Credit, the Company issued warrants to purchase an aggregate of 154,506 shares of Holding’s Series C preferred stock to the bank, which were immediately vested and exercisable. The warrants were valued at $155,000 based on the fair value of the Company’s Series C preferred stock on the issuance date of $1.165 per share using the Black Scholes model with the following assumptions: risk free interest rate of 3.0%; dividend yield of 0%; weighted average expected life of the warrant of seven years; and a 75% volatility factor. The warrants were recorded as a debt discount and an increase in additional paid in capital and were being amortized over the term of the Line of Credit. Upon the closing of the Company’s IPO in October 2013, these warrants were net exercised for 10,889 shares of common stock.

(b) Short-Term Financing

Médical borrows funds from various financial institutions in France on a short-term basis with variable interest rates based on Euribor one-month rates. The funds are typically repaid within 90 days and are collateralized by certain assets of Médical, including accounts receivable. The weighted average interest rate for the short-term balances outstanding at December 31, 2014 and 2013 was 2.3% and 4.8%, respectively.

Médical has loan agreements with five and six different entities as of December 31, 2014 and 2013, respectively. The amounts of the outstanding loans vary from approximately $55,000 to $729,000 at December 31, 2014 and $109,000 to $1.1 million at December 31, 2013, and bear interest at rates varying between 2.53% and 4.65% at December 31, 2014 and 2013. Maturity dates for these loans vary from 2015 to 2019, and the loans are secured by certain assets of Médical.

(d) Future Minimum Principal Payments

Future minimum principal payments of long-term debt by year as of December 31, 2014 are as follows (in thousands):



2015	$	5,352
2016	18,835
2017	474
2018	194
2019	85
Thereafter	—
	$	24,940