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Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
Subsequent to March 31, 2020, certain subsidiaries applied for and received loans from Key Bank, N.A., Comerica Bank and Centennial Bank under the Paycheck Protection Program (“PPP”) which was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). All funds borrowed under the PPP were returned on or before May 7, 2020.
On May 15, 2020, the Company and its Chief Executive Officer, Mr. Monty J. Bennett, entered into a letter agreement pursuant to which, effective as of May 15, 2020 and continuing through and including the Company’s last payroll period in 2020, Mr. Monty J. Bennett will accept payment of his base salary (as previously reduced by mutual agreement of the Company and Mr. Monty J. Bennett) in the form of common stock of the Company, issued pursuant to the Company’s 2014 Incentive Plan, as amended. The Board and Mr. Bennett agreed to effectuate this change to preserve Company liquidity as the Company navigates the effects of the novel coronavirus (COVID-19).
On May 6, 2020, the Company executed the Second Amendment to the Asset Purchase Agreement in which we agreed to immediately pay $1.5 million in cash and modified certain contingent consideration and stock consideration collar payment terms related to the acquisition of BAV to extend remaining payments of cash or stock on various payment dates through March 2021. Pursuant to the agreement, we paid $1.5 million cash to the BAV sellers on May 7, 2020.
Effective June 23, 2020, the Company and Bank of America N.A. executed the Fifth Amendment to the Term Loan Agreement. The Fifth Amendment (a) establishes a 0.50% LIBOR floor, (b) eliminates the consolidated net worth financial covenant, and (c) waives the violation of the consolidated net worth financial covenant that occurred on March 31, 2020. See notes 1 and 6.
On June 24, 2020, the Company declared the remaining 50% or approximately $4.0 million of cumulative preferred dividends due with respect to its Series D Convertible Preferred Stock for the first quarter of 2020. As of the date of this filing, the Company has declared no cumulative preferred dividends with respect to its Series D Convertible Preferred Stock for the second quarter of 2020. As a result of declaring less than the full stated amount of dividend payments due on the Series D Convertible Preferred Stock commencing with the first quarter of 2020 dividend period, the Company had aggregate undeclared preferred stock dividends of approximately $3.9 million as of March 31, 2020 which will be paid in full on July 14, 2020 and the Company expects to have aggregate undeclared preferred stock dividends of approximately $7.9 million as of June 30, 2020 which relates to the second quarter of 2020.