Note 13 – Long-term Debt

On August 22, 2019, the Company and its wholly-owned subsidiary, Screen Media Ventures, LLC, as co-borrowers (“Borrowers”), entered into an amended and restated loan and security agreement (“Amended and Restated Loan Agreement”) with Patriot Bank, N.A. Under the Amended and Restated Loan Agreement, the Borrowers’ outstanding $5,000,000 term loan and $3,500,000 line of credit were consolidated and combined into a term loan in the original principal amount of $16,000,000 (the “Loan”). As a result, the Company recognized a loss on extinguishment of $350,691 during the three and nine months ended September 30, 2019, which consists of fees paid and write-offs of unamortized debt issuance costs.

The Loan is evidenced by a consolidated, amended and restated term promissory note (the “Note”). Subject to the terms of the Note, the Loan bears interest, payable monthly in arrears, at a fixed rate of 5.75% per annum. The outstanding principal amount of the Loan is repayable in consecutive monthly installments in equal amounts of $266,667, commencing on October 1, 2019 and continuing on the same date of each subsequent month thereafter during the term of the Loan. The Loan matures on September 1, 2024.

Pursuant to the Amended and Restated Loan Agreement, at closing the Company paid to Lender an aggregate of approximately $179,000, representing a commitment fee of $85,000, a payment of $25,556 of interest due on the Loan for the 9 days of the month of August 2019 and $68,090 in fees paid to the Lender’s counsel.

Long-term debt for the periods presented was as follows:


	September 30,		December 31,
	2019		2018
Commercial Loan	$	16,000,000	$	4,416,667
Revolving Line of Credit		—		3,500,000
Total Debt		16,000,000		7,916,667
Less: debt issuance costs		188,803		334,554
Less: current portion		3,200,000		1,000,000
Total long-term debt	$	12,611,197	$	6,582,113

The Amended and Restated Loan Agreement includes customary financial covenants, restrictions and interest rate governors including delivery of financial statements, maintaining an account at Patriot Bank, N.A. with an average balance of $2,500,000 in any trailing 90-day period or the interest rate will increase by 0.50% and maintain a minimum debt service coverage ratio of 1.25 to 1.0. The Company was in compliance with all such covenants as of September 30, 2019 and December 31, 2018, respectively.

As of September 30, 2019, the expected aggregate maturities of long-term debt for each of the next five years are as follows:

Future Principal Payments


Year Ended December 31,	Amount
Remainder of 2019	$	800,000
2020		3,200,000
2021		3,200,000
2022		3,200,000
2023		3,200,000
2024		2,400,000
	$	16,000,000