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Subsequent Events
9 Months Ended
Sep. 30, 2015
Subsequent Events  
Subsequent Events

16. Subsequent Events

Line of Credit

In September 2015, the Company entered into the Credit Line with UBS providing for a $50.0 million revolving line of credit which can be drawn in increments at any time. In October 2015, the Company borrowed $32.0 million against the Credit Line, primarily to prepay all outstanding amounts under the Secured Loan Arrangement with ROS. The Credit Line bears interest at 30-day LIBOR plus 0.65%, and presently equals approximately 0.84% per annum. 

Payoff of Secured Loan Agreement

In October 2015, the Company paid off the entire $20.0 million in borrowings under the Secured Loan Arrangement with ROS. The Company made a payment of $28.0 million to ROS, comprising $20.0 million in principal, $2.0 million (10% outstanding principal) in prepayment penalty and $6.0 million in royalty payment applied toward the royalty obligation. This payment released the Company from all future loan payments, royalty payments and all associated liens securing the loan.

Lease Agreement

In October 2015, our subsidiary entered into a one year lease agreement for temporary office space in Austin, Texas.  The property carries a monthly rent of $12,900 per month for the 12 months of the lease and $12,900 per month on a month to month basis following the 12th month.  The terms of the lease include a $12,900 security deposit.

In October 2015, the Company entered into a lease agreement for its corporate headquarters through October 5, 2023. The Company currently occupies its corporate headquarters pursuant to two subleases with the current primary lessees. The Company’s monthly base rent from (i) October 6, 2016 to January 5, 2017 will be $0.2 million; (ii) January 6, 2017 to October 5, 2017 will be $0.3 million; and (iii) October 6, 2017 to October 5, 2018 will be $0.3 million; and will increase each year thereafter to a maximum of $0.4 million in the final year of the initial term of the Lease. The Company is entitled to a tenant improvement allowance of $0.4 million, to be expended prior to April 1, 2018, for costs related to the design and construction of improvements to the facilities. The terms of the lease include a $0.5 million security deposit.