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Current Liabilities and Debt Obligations | 6 Months Ended
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Jun. 30, 2014
Current Liabilities and Debt Obligations [Abstract] |
Current Liabilities and Debt Obligations | Note 5. Current Liabilities and Debt Obligations Accounts Payable and Other Accrued Payables As of June 30, 2014 and December 31, 2013, the accounts payable and other accrued payables consisted of $11.6 million and $17.3 million, respectively, in trade account payables and $3.9 million and $6.0 million, respectively, in accrued payables. Senior Revolving Credit Facility On July 31, 2013, we amended our $30 million revolving credit facility (the “Facility”) with Wells Fargo Capital Finance, LLC (“Wells Fargo”) to extend the maturity date to November 13, 2014 from May 17, 2014. On March 27, 2014, we further amended the Facility to extend the maturity date to November 13, 2015. In addition, Wells Fargo issued a waiver of certain existing defaults under the Facility including failure to maintain required EBITDA (as defined in the Facility) covenants. The March 2014 amendment also amends the terms of the Facility with respect to repayment on the term loan component. Since 2010, the principal of the term loan component has been repaid in quarterly installments of $93,750. The amended Facility requires quarterly installment payments of $250,000 beginning July 1, 2014, with a final installment of the unpaid principal amount payable on November 13, 2015, the maturity date of the amended Facility. In consideration for the closing of this amendment, we paid Wells Fargo a fee of $75,000, plus expenses related to the closing. The interest rate on the term loan component is the same as that on the revolving credit component of the Facility, which is the higher of the Wells Fargo Bank “prime rate” plus 1%, the Federal Funds rate plus 1.5%, or the 3-month LIBOR rate plus 2%. In lieu of having interest charged at the foregoing rates, the Company may elect to have the interest on all or a portion of the advances on the revolving credit component be a rate based on the LIBOR Rate (as defined in the Facility) plus 3.75%. As of June 30, 2014, we have not elected the LIBOR Rate option. Borrowings under the Facility are collateralized by substantially all of the Company’s assets including inventory, equipment, and accounts receivable. As of June 30, 2014, the interest rate on the Facility was 4.25%. We incurred interest expense in the amount of $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively, and $0.2 million and $0.4 million for the three and six months ended June 30, 2013, respectively, on the Facility. On June 11, 2013, the Facility was amended to allow for the further redemption of Senior Redeemable Preferred Stock, under certain conditions, at a discount from par value plus accrued dividends of at least 10%, at an aggregate price not to exceed $2.0 million. On June 14, 2013, a portion of the Senior Redeemable Preferred Stock was redeemed (see Note 6 – Redeemable Preferred Stock). The Facility has various covenants that may, among other things, affect our ability to merge with another entity, sell or transfer certain assets, pay dividends and make other distributions beyond certain limitations. On May 13, 2014 and June 26, 2014, Wells Fargo amended the Facility to not measure performance against the EBITDA (as defined in the Facility) covenants for the quarters ending March 31, 2014 and June 30, 2014, pending revision of the covenants to more accurately reflect the Company’s recent operating results and current operating budget. The June 2014 amendment also reduced the recurring revenue covenant under the Facility from $5 million to $4.5 million. At June 30, 2014, we had outstanding borrowings of $13.2 million on the Facility, which included the $6.0 million term loan, of which $1.0 million was short-term. At December 31, 2013, we had outstanding borrowings of $19.8 million on the Facility, which included the $6.2 million term loan, of which $0.7 million was short-term. At June 30, 2014 and December 31, 2013, we had unused borrowing availability on the Facility of $3.7 million and $9.2 million, respectively. The effective weighted average interest rates on the outstanding borrowings under the Facility were 5.6% and 5.4% for the six months ended June 30, 2014 and 2013, respectively. The following are maturities of the Facility presented by year (in thousands):
|  | 2014 |  |  | 2015 |  |  | Total |
Short-term: |  |  |  |  |  |  |  |  |
Term loan |  | $ | 1,000 |  |  | $ | -- |  |  | $ | 1,000 | 1
Long-term: |  |  |  |  |  |  |  |  |  |  |  |
Term loan |  | $ | -- |  |  | $ | 5,000 |  |  | $ | 5,000 | 1
Revolving credit |  |  | -- |  |  |  | 7,218 |  |  |  | 7,218 | 2
Subtotal |  | $ | -- |  |  | $ | 12,218 |  |  | $ | 12,218 |
Total |  | $ | 1,000 |  |  | $ | 12,218 |  |  | $ | 13,218 |
| 1 | The principal will be repaid in quarterly installments of $250,000, with a final installment of the unpaid principal amount payable on November 13, 2015.
| 2 | Balance due represents balance as of June 30, 2014, with fluctuating balances based on working capital requirements of the Company.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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