Related Party Transactions

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

9. Loan Payable to Related Party

The Company’s bank loan facility, prior to the payoff of this facility in full in October 2013, was held with a financial institution that was a related party. The facility had been used solely for the purchase of land and the construction of the corporate headquarters facility. In August 2011, the Company replaced its expiring bank promissory note agreement with an amended bank loan agreement. The amended loan required semi-annual principal payments of $250 with the remaining amount due at maturity in August 2016. Interest under the loan agreement was payable at a floating rate equal to the 30 day LIBOR rate plus 4.5% or 5.5%, whichever was greater. Interest was payable monthly at the beginning of the following month. At September 30, 2013 and 2012, the interest rate on the loan was 5.5%. In addition, the Company issued warrants to purchase shares of common stock as described in Note 15. All borrowings were collateralized by the land and facility, as the bank would take possession of the premises upon the failure by the Company to make a scheduled payment when due, after consideration of applicable cure periods, or the failure to maintain a debt service coverage ratio, defined as net cash flow from operations to debt service, of 1.1 to 1.0 calculated quarterly. Debt service was defined as the principal and interest payable on the loan during the fiscal year. For the year ended September 30, 2013, the Company was not in compliance with this requirement. The Company had received a waiver related to this covenant until December 31, 2013.

The Company was required to maintain a compensating balance of $1,000 in its operating account during the term of the loan to provide for the payment of interest on the note in the event of a default. The Company has classified the $1,000 compensating balance as restricted cash in the consolidated balance sheets. Dividends or other distributions to preferred or common stockholders was restricted until the outstanding balance of the loan was reduced to $10,360 and positive earnings were demonstrated for six consecutive months. In October 2013, the Company repaid in full the outstanding balance of this loan of $10,216, plus accrued interest of $46. Upon repayment, the restrictions on the $1,000 compensating balance were lifted. As such, the outstanding loan balance was $0 since the end of October 2013.