SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2020

Subsequent Events

Subsequent Events

12.          Subsequent Events

Subsequent to March 31, 2020, and through May 20, 2020, the Company made net borrowings of $7.0 million on its Revolving Credit Facility.  As of May 20, 2020, the Company is fully drawn down under its Revolving Credit Facility.

On May 18, 2020, the Company received loan proceeds of $769,295.00 from a promissory note issued by Bank of America, N.A., under the Paycheck Protection Program (“PPP”) which was established under the CARES Act and is administered by the U.S. Small Business Administration. The term on the loan is two years and the annual interest rate is 1.00%.  Payments of principal and interest are deferred for the first six months of the loan.  The Company received consent from its lenders under the Amended Wilmington Credit Agreement.  Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loans granted under PPP.  Such forgiveness will be determined based on the use of the loan proceeds for payroll costs, rent and utility expenses and the maintenance of workforce and compensation levels with certain limitations.  There is uncertainty around the standards and operation of the PPP, and no assurance is provided that the Company will obtain forgiveness in whole or in part.