Line of Credit	6 Months Ended
Jun. 30, 2020
Line of Credit
Line of Credit	7. Line of Credit We have a $20.0 million revolving line of credit with a financial institution that can be used to borrow for working capital and general business requirements and issue letters of credit. Amounts borrowed accrue interest at a floating per annum rate equal to (a) the greater of the prime rate or 3.25% plus 0.25% or (b) LIBOR plus 3 percent. A default interest rate shall apply during an event of default at a rate per annum equal to 5% above the otherwise applicable interest rate. The line of credit is collateralized by substantially all of our assets, except intellectual property, and requires us to comply with working capital covenants, including limitations on indebtedness and restrictions on dividend distributions, among others, but does allow for the repurchase of a limited amount of our common stock. We are required to maintain an adjusted quick ratio (defined as the ratio of eligible cash and cash equivalents plus accounts receivable to current liabilities minus deferred revenue and customer arrangements with termination rights) of at least 1.25. In May 2015, we issued a letter of credit for $1.5 million as a security deposit for a new lease for office space in a building in Mountain View, California, and in November 2017 we issued a bank guarantee to a customer of approximately $3.0 million that can be drawn if we become insolvent or bankrupt. The issuances of the letter of credit and bank guarantee reduced the borrowing capacity under our line of credit to approximately $15.5 million. In June 2020, we amended our revolving line of credit and extended its maturity date to June 2023. There were no other outstanding amounts under the line of credit at June 30, 2020 or December 31, 2019 and we were in compliance with all financial and non-financial covenants.

Line of Credit

6 Months Ended

Jun. 30, 2020

7. Line of Credit

We have a $20.0 million revolving line of credit with a financial institution that can be used to borrow for working capital and general business requirements and issue letters of credit. Amounts borrowed accrue interest at a floating per annum rate equal to (a) the greater of the prime rate or 3.25% plus 0.25% or (b) LIBOR plus 3 percent. A default interest rate shall apply during an event of default at a rate per annum equal to 5% above the otherwise applicable interest rate. The line of credit is collateralized by substantially all of our assets, except intellectual property, and requires us to comply with working capital covenants, including limitations on indebtedness and restrictions on dividend distributions, among others, but does allow for the repurchase of a limited amount of our common stock. We are required to maintain an adjusted quick ratio (defined as the ratio of eligible cash and cash equivalents plus accounts receivable to current liabilities minus deferred revenue and customer arrangements with termination rights) of at least 1.25.

In May 2015, we issued a letter of credit for $1.5 million as a security deposit for a new lease for office space in a building in Mountain View, California, and in November 2017 we issued a bank guarantee to a customer of approximately $3.0 million that can be drawn if we become insolvent or bankrupt. The issuances of the letter of credit and bank guarantee reduced the borrowing capacity under our line of credit to approximately $15.5 million.

In June 2020, we amended our revolving line of credit and extended its maturity date to June 2023.

There were no other outstanding amounts under the line of credit at June 30, 2020 or December 31, 2019 and we were in compliance with all financial and non-financial covenants.