TERM LOAN AND REVOLVER	9 Months Ended
Sep. 30, 2012
TERM LOAN AND REVOLVER	6. TERM LOAN AND REVOLVER The Company has a loan and security agreement with Silicon Valley Bank and JPMorgan Chase Bank which provided for a term loan of up to $52.5 million and currently provides a $50.0 million revolving line of credit. On March 30, 2012, the Company paid off the balance of the term loan in advance of the July 1, 2012 maturity date. The term loan was payable in 20 quarterly installments of principal and the payments commenced on October 1, 2007. Interest was paid monthly and was based upon the Company’s choice of the prime rate of interest plus 0.5% or the LIBOR rate plus 3.25%. The term loan was secured by certain of the Company’s assets, a pledge of the Company’s membership interests in the Company’s wholly-owned subsidiary GAIN Holdings, LLC and a guarantee by GAIN Holdings, LLC. The terms of the revolving line of credit are substantially the same as those of the term loan. As of September 30, 2012 and December 31, 2011, there were no amounts outstanding under the revolving line of credit. In accordance with the provisions of the loan and security agreement, the Company is required to adhere to various financial, regulatory, operational and reporting covenants. As of September 30, 2012 and during the entire term of the loan and security agreement, the Company was and has been in compliance with such covenants. Loan fees were capitalized to deferred finance costs and were being amortized over the life of the term loan. In connection with paying off the balance of the term loan, the Company expensed the remaining deferred financing costs during the nine months ended September 30, 2012. Deferred financing costs amortized to interest expense were immaterial for the three months and nine months ended September 30, 2012 and 2011, respectively. The Company had deferred financing costs, recorded in Other assets on the Condensed Consolidated Balance Sheets, of $0.05 million at December 31, 2011.

TERM LOAN AND REVOLVER

9 Months Ended

Sep. 30, 2012

6. TERM LOAN AND REVOLVER

The Company has a loan and security agreement with Silicon Valley Bank and JPMorgan Chase Bank which provided for a term loan of up to $52.5 million and currently provides a $50.0 million revolving line of credit. On March 30, 2012, the Company paid off the balance of the term loan in advance of the July 1, 2012 maturity date. The term loan was payable in 20 quarterly installments of principal and the payments commenced on October 1, 2007. Interest was paid monthly and was based upon the Company’s choice of the prime rate of interest plus 0.5% or the LIBOR rate plus 3.25%. The term loan was secured by certain of the Company’s assets, a pledge of the Company’s membership interests in the Company’s wholly-owned subsidiary GAIN Holdings, LLC and a guarantee by GAIN Holdings, LLC. The terms of the revolving line of credit are substantially the same as those of the term loan.

As of September 30, 2012 and December 31, 2011, there were no amounts outstanding under the revolving line of credit.

In accordance with the provisions of the loan and security agreement, the Company is required to adhere to various financial, regulatory, operational and reporting covenants. As of September 30, 2012 and during the entire term of the loan and security agreement, the Company was and has been in compliance with such covenants.

Loan fees were capitalized to deferred finance costs and were being amortized over the life of the term loan. In connection with paying off the balance of the term loan, the Company expensed the remaining deferred financing costs during the nine months ended September 30, 2012. Deferred financing costs amortized to interest expense were immaterial for the three months and nine months ended September 30, 2012 and 2011, respectively. The Company had deferred financing costs, recorded in Other assets on the Condensed Consolidated Balance Sheets, of $0.05 million at December 31, 2011.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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