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Subsequent Events
6 Months Ended
Dec. 31, 2011
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Subsequent Events
Amendments to Silicon Valley Bank Loan Agreements
On February 6, 2012, Adept entered into amendments to its Loan and Security Agreement, dated May 1, 2009 (as previously amended), and its Loan and Security Agreement (EX-IM Loan Facility), dated March 25, 2011, for its revolving line of credit with Silicon Valley Bank (“SVB”). The revolving line of credit and recent amendments are also described in this quarterly report on Form 10-Q under the section entitled “Liquidity and Capital Resources”.
The amendments modified the financial covenants Adept must meet during the term of the Revolving Line. As modified, Adept must maintain (a) liquidity (domestic cash plus the available domestic borrowing base) of at least $3.5 million, and (b) minimum aggregate quarterly EBITDA (measured at the end of each fiscal quarter) equal to or exceeding specified amounts (which are lower than the amounts applicable prior to the February 2012 amendments) for each fiscal quarter beginning December 2011. The quarterly EBITDA amounts in the Loan and Security Agreement are minimum amounts for financial covenant purposes only, and do not represent projections of Adept's financial results.
The amendments extend the maturity date of the portion of the revolving line that is guaranteed by the Export-Import Bank of the United States, for borrowings against certain foreign accounts receivable and export-related inventory (the “EX-IM Line), from March 24, 2012 to March 25, 2013. This portion of the amendment will become effective on March 25, 2012, subject to Adept's satisfaction of certain conditions precedent. The maturity date for the domestic portion of the revolving line remains March 25, 2013. On or prior to March 25, 2012, Adept will pay a $50,000 facility fee in connection with the renewal of the EX-IM Line. Adept will also pay certain bank expenses in connection with entry into the amendments.
The Loan and Security Agreement requires Adept to cause its U.S. customers to transmit payments on accounts receivable to a lockbox account at SVB. Under the February 2012 amendments, SVB applies all collections (regardless of Adept's Adjusted Quick Ratio of unrestricted cash, cash equivalents and accounts receivable to current liabilities) from this lockbox account toward repayment of Adept's obligations to SVB, and transfers any excess to Adept's designated deposit account with SVB. Adept will pay the collateral monitoring fee of $850 per month if there is any principal or interest outstanding under the revolving line of credit during such month, regardless of Adept's Adjusted Quick ratio. Adept may re-borrow funds under the revolving line if there is available borrowing base to do so, and Adept meets the other conditions precedent for borrowing set forth in the loan documents. As SVB has dominion over domestic cash receipts, the revolving line is classified as a current liability in the financial statements.