Long-Term Debt and Line-of-Credit

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt and Line-of-Credit

Note 8. Long-Term Debt and Line-of-Credit

On July 1, 2020, we entered into a Loan and Security Agreement (as amended, the “UMB Loan Agreement”) with UMB Bank, N.A. (“UMB”). Under the UMB Loan Agreement we obtained a $3,000 term loan, with equal monthly payments fully amortized over three years, and interest at the LIBOR Rate + 4.50% with a floor of 5.50%, and a revolving credit facility, with a maximum commitment of $7,000 with interest at the LIBOR Rate + 3.75%, with a floor of 4.75%. On August 10, 2022, the revolving credit facility was reduced to a maximum commitment of $4,000 with interest at the one month term SOFR rate + 6.83%, with a floor of 7.75%. The revolving credit facility will terminate on July 1, 2023, unless terminated earlier pursuant to the terms of the UMB Loan Agreement. The loans are secured by all of the assets of the Company and all of its subsidiaries.

The UMB Loan Agreement requires compliance with affirmative, negative, and financial covenants, as determined on a monthly basis. The UMB Loan Agreement also contains covenants typical of transactions of this type, including among others, limitations on our ability to: create, incur or assume any indebtedness or lien on our assets; pay dividends or make other distributions; redeem, retire or acquire outstanding common stock, options, warrants or other rights; make fundamental changes to our corporate structure or business; make investments or sell assets; or engage in certain other activities as set forth in the UMB Loan Agreement. The Company was in compliance with the UMB Loan Agreement financial covenants as of September 30, 2022.

As of September 30, 2022, our UMB revolving credit facility and UMB term loan had an outstanding balance of $2,414 and $0, respectively, with an all-in interest rate of 9.87% and 9.13%, respectively. Unamortized loan costs were as $149 of September 30, 2022.

On November 9, 2021, we entered into a loan and security agreement (the “La Plata Loan Agreement”) with La Plata Capital, LLC (“La Plata”). Under the La Plata Loan Agreement, we obtained a $2,000 term loan that bears interest at 14% and a maturity date of November 9, 2023. Interest-only payments are required on a monthly basis beginning in January 2022 and ending on December 1, 2022. Beginning on January 1, 2023, monthly principal payments of $30 are required in addition to accrued and unpaid interest. All remaining unpaid principal and interest are fully due on November 9, 2023.

The La Plata Loan Agreement requires compliance with affirmative, negative, and financial covenants, as determined on a monthly basis beginning in July 2022. The La Plata Loan Agreement is secured by all of the assets of the Company and all of its subsidiaries, subordinate to the security of the UMB Loan Agreement. In conjunction with this agreement, we also entered into an intercreditor and subordination agreement with UMB and La Plata, effective November 9, 2021. The Company was in compliance with the La Plata Loan Agreement as of September 30, 2022.

As of September 30, 2022, our La Plata term loan had an outstanding balance of $1,000. La Plata unamortized loan costs were $26 as of September 30, 2022.

As of September 30, 2022, the total principal payments due on our outstanding debt were as follows:

	Revolving Credit Facility		Term Loan		Total
Remainder of 2022	$	-		-		-
2023		2,414		1,000		3,414
Total minimum principal payments	$	2,414	$	1,000	$	3,414