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Debt (Tables)
12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Outstanding Borrowings
Our outstanding debt consisted of the following:
 
 
December 31,
(in thousands)
 
2017
 
2016
2016 Credit and Security Agreement
 
$
10,015

 
$
3,603

Term Loan
 
8,500

 
3,676

Discount on Term Loan
 
(631
)
 
(1,122
)
Unamortized debt issuance costs related to Term Loan
 
(220
)
 
(336
)
Subordinated Promissory Note, net
 
1,543

 
—

Capital Leases
 
107

 
—

Total debt
 
19,314

 
5,821

Short-term portion
 
(19,314
)
 
(5,821
)
Total long-term debt, net
 
$
—

 
$
—

Schedule of Components of Interest Expense
The following table summarizes the components of interest expense for the years ended December 31, 2017 and 2016:

 
 
December 31,
(in thousands)
 
2017
 
2016
Interest expense on Term Loan (a)
 
$
883

 
$
658

Interest expense on 2013 Loan and Security Agreement
 
—

 
48

Interest expense on 2016 Credit and Security Agreement
 
601

 
311

Interest expense on Seasonal Facility
 
138

 
—

Interest expense on Subordinated Promissory Note
 
101

 
—

Interest expense on Capital Leases
 
8

 
—

Interest expense, other
 
6

 
—

Accretion of termination fees (over term of Term Loan at rate of 8%)
 
441

 
187

Amortization of debt issuance costs
 
351

 
362

Write-off of debt issuance costs related to 2013 Loan and Security Agreement
 
—

 
282

Amortization of debt discount associated with SWK Warrants #1 and #2 (defined below)
 
691

 
1,663

Amortization of Subordinated Debt discount
 
38

 
—

Mark to market of SWK Warrant #2 (defined below)
 
(63
)
 
59

Total
 
$
3,195

 
$
3,570


(a) As of December 31, 2017 and 2016, the effective interest rate was 28% and 15%, respectively.

Schedule of Debt Covenant Compliance
The covenants are summarized in the tables below and are on a pro forma basis as if the Merger with PHS happened as of April 1, 2017:

(in thousands)
Minimum Aggregate Revenue (LTM) as of the end of:
Months Ending
Nine
Twelve
Twelve
Twelve
Twelve
Twelve
Period Ended
December 31, 2017
March 31, 2018
June 30, 2018
September 30, 2018
December 31, 2018
each fiscal quarter
thereafter
 
$53,000
$69,000
$70,000
$71,000
$74,000
$75,000
 
 
 
 
 
 
 
 
Minimum Adjusted EBITDA as of the end of:
Months Ending
Twelve
Twelve
Twelve
Twelve
Twelve
Twelve
Period Ended
December 31, 2017
March 31, 2018
June 30, 2018
September 30, 2018
December 31, 2018
each fiscal quarter
thereafter
 
$3,000
$5,000
$5,200
$6,000
$8,000
$9,000
 
 
 
 
 
 
 
 
Minimum Consolidated Unencumbered Liquid Assets as of:
 
The end of each fiscal quarter
 
 
 
 
 
 
$1,000
 
 
 
 
 
The covenants are summarized in the tables below and are on a pro forma basis as if the Merger with PHS happened as of April 1, 2017:

(in thousands)
Minimum Aggregate Revenue (LTM) as of the end of:
Months Ending
Nine
Twelve
Twelve
Twelve
Twelve
Twelve
Period Ended
December 31, 2017
March 31, 2018
June 30, 2018
September 30, 2018
December 31, 2018
each fiscal quarter
thereafter
 
$53,000
$69,000
$70,000
$71,000
$74,000
$75,000
 
 
 
 
 
 
 
 
Minimum Adjusted EBITDA as of the end of:
Months Ending
Twelve
Twelve
Twelve
Twelve
Twelve
Twelve
Period Ended
December 31, 2017
March 31, 2018
June 30, 2018
September 30, 2018
December 31, 2018
each fiscal quarter
thereafter
 
$3,000
$5,000
$5,200
$6,000
$8,000
$9,000
 
 
 
 
 
 
 
 
Minimum Consolidated Unencumbered Liquid Assets as of:
 
The end of each fiscal quarter
 
 
 
 
 
 
$1,000