Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Debt

The following table sets forth the components of debt as of March 31, 2022 and December 31, 2021:

	March 31, 2022						December 31, 2021
	Principal Outstanding		Unamortized Discount and Issuance Cost		Carrying Amount		Principal Outstanding		Unamortized Discount and Issuance Cost		Carrying Amount
Short term loans, due 2023	$	1,107	$	—	$	1,107	$	810	$	—	$	810
Promissory note, due 2023	10,000		(326)		9,674		—		—		—
CIBC loan, due 2026	6,810		(23)		6,787		7,102		(19)		7,083
Total debt	$	17,917	$	(349)	$	17,568	$	7,912	$	(19)	$	7,893

The outstanding debt as of March 31, 2022 and December 31, 2021 is classified in the condensed consolidated balance sheets as follows:

	March 31, 2022		December 31, 2021
Current liabilities - Current debt obligations	$	12,262	$	2,275
Noncurrent liabilities - Long-term debt, net of current maturities	5,306		5,618
Total debt	$	17,568	$	7,893

PacWest Revolving Line of Credit

The Company entered into a loan and security agreement with Pacific Western Bank (“PacWest”, formerly Square 1 Bank) in January 2015, that provided a term loan of up to $10,000 with a maturity date of September 2020. The term loan bore interest equal to the greater of one percent above the prime rate in effect, or 4.5% on outstanding borrowings. In addition, the loan and security agreement provided for a revolving line of credit. The revolving line of credit bore interest equal to the greater of seventy-five basis points above the prime rate in effect, or 4.25% on outstanding borrowings. The terms of the loan and security agreement have been amended from time to time, and in with the most recent amendment dated November 5, 2021 as described below. The amendments have, among other things, extended the maturity date of the loan and adjusted the financial covenants’ borrowing limits. During 2020, the outstanding balance on the term loan was transferred to the revolving line of credit.

On November 5, 2021, the Company entered into an amendment to the PacWest loan agreement that (i) increased the maximum borrowing capacity under the revolving line of credit to $20,000, (ii) limited the security interests of the bank to the cash collateral set at 102.5% of the drawn amount of the loan, (iii) removed various reporting and restrictive covenants, (iv) extended the maturity date to November 4, 2022 and (iv) reduced the interest rate to 2.1% per annum. In addition, the amendment requires the Company to collateralize a cash balance equal to the total outstanding balance in a cash security account with

PacWest. Upon execution of the amendment, the Company repaid the outstanding balance of $1,675 under the original line of credit to this new arrangement.

As of March 31, 2022 and December 31, 2021, there was no outstanding balance on the revolving line of credit. The Company’s borrowings under the revolving line of credit were subject to an aggregate borrowing limit of $20,000 as of March 31, 2022 and December 31, 2021. Total borrowings at any given time under the revolving line of credit are limited to a percentage of domestic accounts receivables less than 90 days past due and other factors.

The revolving line of credit is subject to debt covenants which, if violated, could result in the outstanding balance becoming immediately due. The Company has complied with or obtained waivers for all such covenants as of the date these financial statements were issued.

TeraXion Revolving Credit

In connection with the acquisition of TeraXion on October 12, 2021, the Company assumed a revolving credit with the Canadian Imperial Bank of Commerce with a credit limit of CAD9,440 bearing interest at prime rate plus 0.25%, repayable in monthly installments of CAD155 plus interest, maturing in October 2026. The repayment of monthly installments reduces the credit limit over time. As of March 31, 2022 and December 31, 2021 the outstanding principal balance and credit limit of the loan was $6,805 and $7,102, or CAD8,512 and CAD8,976, respectively. This loan is secured with an authorized credit facility of CAD7,000 from the bank, bearing interest at prime rate plus 0.25%. This line of credit was unused at December 31, 2021 and March 31, 2022.

Short Term Loans

Wuxi

On November 13, 2019, Wuxi entered into a short-term loan agreement with CITIC Group Corporation Ltd. with aggregate principal balance of CNY2,000, or approximately $285, and bearing interest of 4.785% per annum. The principal balance is denominated in Chinese Yuan and the outstanding balance is adjusted for changes in foreign currency exchange rates at each reporting period. On November 13, 2020, the terms of the agreement were extended for twelve months, and the principal and interest were due on November 15, 2021. On November 19, 2021, the total outstanding balance with CITIC Group Corporation was fully paid off. On January 19, 2022, Wuxi entered into a short-term loan agreement with CITIC Group Corporation Ltd. with aggregate principal balance of CNY2,000, or approximately $315, and bearing interest of 3.90% per annum. The principal balance is denominated in Chinese Yuan and the outstanding balance is adjusted for changes in foreign currency exchange rates at each reporting period. As of March 31, 2022, the total outstanding short-term loan with CITIC Group Corporation Ltd. was CNY2,000, or approximately $315.

On October 15, 2020, Wuxi entered into a short-term loan agreement with Bank of Ningbo (“NBCB”) with aggregate principal balance of CNY1,000 or approximately $151 and bearing interest of 4.785%. On April 29, 2021, Wuxi increased its short-term loan principal with NBCB by CNY1,000 or approximately $155 to a total principal balance of CNY4,000. On October 14, 2021, the borrowing from October 15, 2020 was fully paid off. On October 18, 2021, Wuxi re-entered into a short-term loan agreement with NBCB for CNY1,000, or approximately $150 and bearing interest of 4.785%. As of March 31, 2022, the total outstanding short-term loan with NBCB was CNY2,000, or $315. As of December 31, 2021, the total outstanding short-term loan with NBCB was CNY2,000 or $315.

On November 18, 2021, Wuxi also entered into a short-term loan agreement Bank of Nanjing with aggregate principal balance of CNY3,000, or approximately $453 and bearing interest of 4.00%. As of March 31, 2022, the total outstanding short-term loan with Bank of Nanjing was CNY3,000 or $472. As of December 31, 2021, the total outstanding short-term loan with Bank of Nanjing was CNY3,000 or $472.

TeraXion

In connection with the TeraXion acquisition, on October 12, 2021, the Company assumed a short-term loan with Canada Economic Development. This loan bears an interest rate of 8.00% and is payable monthly with a maturity date of April 1, 2022. As of March 31, 2022 and December 31, 2021, the aggregate outstanding principal balance was $5 and $23, respectively. As of April 1, 2022 this loan has been repaid in full.

Symeo Promissory Note

In connection with the Symeo acquisition on January 4, 2022, the Company issued a short-term interest-free promissory note of $10,000, payable upon its maturity of January 31, 2023. As of March 31, 2022, the outstanding principal balance was $10,000 and the carrying value was $9,674.

The table below sets forth the components of interest expense for the three months ended March 31, 2022 and March 31, 2021:

	Three Months Ended March 31,
	2022		2021
Interest expense on Trinity Term Loan:
Contractual interest	$	—	$	395
Amortization of discount and issuance cost	—		72
	—		467
Interest expense on other debt obligations:
Contractual interest	58		123
Amortization of discount and issuance cost	—		30
	58		153
Total interest expense	$	58	$	620