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NOTES PAYABLE | 6 Months Ended
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Jun. 30, 2020
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] | NOTE 5 – NOTES PAYABLE The following table summarizes our outstanding debt as of the dates indicated:
| Maturity |  | Stated Interest Rate |  |  | June 30, 2020 |  |  | December 31, 2019 |
Subordinated Notes Payable – acquisitions | 1/1/2021 – 7/1/2021 |  |  | 2.00% - 3.00 | % |  | $ | 5,276 |  |  | $ | 7,185 |
Term Loan – Pinnacle | 4/15/2022 |  |  | 1.00 | % |  |  | 8,856 |  |  |  | - |
Term Loan – Wells Fargo Syndicate Partner | 12/31/2024 |  |  | 4.42 | % |  |  | 19,750 |  |  |  | 20,000 |
Total Notes Payable |  |  |  |  |  | $ | 33,882 |  |  | $ | 27,185 |
Short-term Notes Payable |  |  |  |  |  |  | 15,894 |  |  |  | 2,696 |
Long-term Notes Payable |  |  |  |  |  | $ | 17,988 |  |  | $ | 24,489 |
The following table summarizes the debt issuance costs as of the dates indicated based:
|  | June 30, 2020 |
|  | Gross Notes Payable |  |  | Debt Issuance Costs and Debt Discount |  |  | Net Notes Payable |
Notes payable, current portion |  | $ | 15,894 |  |  | $ | (199 | ) |  | $ | 15,695 |
Notes payable, net of current portion |  |  | 17,988 |  |  |  | (128 | ) |  |  | 17,860 |
Total |  | $ | 33,882 |  |  | $ | (327 | ) |  | $ | 33,555 |
|  | December 31, 2019 |
|  | Gross Notes Payable |  |  | Debt Issuance Costs and Debt Discount |  |  | Net Notes Payable |
Notes payable, current portion |  | $ | 2,696 |  |  | $ | (125 | ) |  | $ | 2,571 |
Notes payable, net of current portion |  |  | 24,489 |  |  |  | (347 | ) |  |  | 24,142 |
Total |  | $ | 27,185 |  |  | $ | (472 | ) |  | $ | 26,713 |
The following table summarizes the future principal payments related to our outstanding debt as of June 30, 2020:
Year Ending |  | Amount |
2020 |  | $ | 10,813 |
2021 |  |  | 11,455 |
2022 |  |  | 2,489 |
2023 |  |  | 500 |
2024 |  |  | 8,625 |
Total |  | $ | 33,882 |
Term Loan - Wells Fargo In March 2014, we entered into a credit agreement (the “Credit Agreement”) with Wells Fargo, as administrative agent, and the lenders that are party thereto. The Credit Agreement contains customary events of default, including, among others, payment defaults, covenant defaults, judgment defaults, bankruptcy and insolvency events, cross defaults to certain indebtedness, incorrect representations or warranties, and change of control. In some cases, the defaults are subject to customary notice and grace period provisions. In March 2014 and in connection with the Credit Agreement, we and our wholly owned active subsidiaries entered into a Guaranty and Security Agreement with Wells Fargo Bank. Under the Guaranty and Security Agreement, we and each of our wholly owned active subsidiaries have guaranteed all obligations under the Credit Agreement and granted a security interest in substantially all of our and our subsidiaries’ assets. In December 2019, we entered into a third amended and restated credit agreement (the “Third Restated Credit Agreement”) with Wells Fargo Bank, as agent and lender, amending and restating the terms of the Second Amended and Restated Credit Agreement dated as of March 2018. The Third Restated Credit Agreement provided for $20,000 in term loans and a $10,000 revolver. It also amended the applicable margin rates for determining the interest payable on loans and amended certain of our financial covenants, including adding a covenant based on achieving EBITDA of at least $3,750 for the three months ended March 31, 2020, $4,850 for the six months ended June 30, 2020 and $5,950 for the nine months ended September 30, 2020, which covenant was in lieu of a leverage covenant calculated at March 31, 2020, June 30, 2020 and September 30, 2020 See Note 12 - Subsequent Events for information regarding amendments that Wells Fargo Bank and we have made to the Third Restated Credit Agreement after June 30, 2020. PPP Loan In April 2020, Asure entered into a Promissory Note (the “PPP Note”) with Pinnacle Bank as the lender (the “Lender”), pursuant to which the Lender agreed to give us a loan under the Paycheck Protection Program (the "PPP Loan") offered by the U.S. Small Business Administration (the “SBA”) in a principal amount of $8,856 pursuant to Title 1 of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). The PPP Loan proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves. Under the Cares Act, the PPP loan may be forgiven if certain criteria are satisfied. The amount that will be forgiven will be calculated in part with reference to the Company’s full time headcount during the twenty-four week period following the funding of the PPP Loan. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loans granted under the Cares Act. The PPP Loan is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health benefits, and certain rent, utility, and mortgage interest expenses (collectively, “Qualifying Expenses”), pursuant to the terms and limitations of the Cares Act. The Company intends to use a significant majority of the PPP Loan amount for Qualifying Expenses. However, no assurances is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. The interest rate on the PPP Note is a fixed rate of 1% per annum. To the extent that the amounts owed under the PPP Loan, or a portion of them, are not forgiven, the Company will be required to make principal and interest payments in monthly installments beginning seven months from April 2020. The PPP Note matures in two years. The PPP Note includes events of default. Upon the occurrence of an event of default, the Lender will have the right to exercise remedies against the Company, including the right to require immediate payment of all amounts due under the PPP Note. Revolving Credit Facility As of June 30, 2020 and December 31, 2019, no amount was outstanding and $9,500 and $10,000, respectively, was available for borrowing under the revolver. Due to the effects of Covid-19 on our business, we were not in compliance with our minimum EBITDA financial covenant as of March 31, 2020 and June 30, 2020 and do not expect to be in compliance with the minimum EBITDA financial covenants as set forth in the Third Restated Credit Agreement in future quarters. These covenants were set in December 31, 2019, before the Covid-19 pandemic and its possible effects on our business were known to our senior lender or us. See Note 12 – Subsequent Events for information about the amendment we entered with our senior lender resetting these financial covenants and expectations regarding cash available for future business needs and our ability to comply with our financial covenants in future quarters.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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