v3.19.1
Line of Credit
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Line of Credit

NOTE 7—LINE OF CREDIT

In April 2016, the Company obtained a revolving credit facility of $500,000 to finance accounts receivable. The outstanding balances under the credit facility bore interest at the floating WSJ prime rate plus 1%, with a floor of 4.5%, payable monthly in arrears. In addition to other restrictive covenants, a first priority security interest lien on all assets of Cooltech Distribution, a subsidiary of the Company, was pledged to the lender, an international financial institution. This liability was guaranteed personally by two executive officers of the Company. On October 31, 2017, the line was fully repaid and terminated and the lender released its security interest in the Company’s assets.  Interest expense related to the revolving credit facility in the year ended December 31, 2017 was $23,000.