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Financing Obligations | 9 Months Ended
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Sep. 30, 2018
Debt Disclosure [Abstract] |
Financing Obligations | Note 5 — Financing Obligations The following table provides details relating to the Company’s financing obligations as of September 30, 2018 and December 31, 2017:
|  | As of |
|  | September 30, 2018 |  |  | December 31, 2017 |
|  | (in thousands) |
Debt and capital lease obligations: |  |  |  |  |  |  |  |
Revolving line of credit |  | $ | 9,000 |  |  | $ | 6,000 |
Capital leases |  |  | 502 |  |  |  | 654 |
|  |  | 9,502 |  |  |  | 6,654 |
Less: Current portion of debt and capital lease obligations |  |  | (9,360 | ) |  |  | (6,299 | )
Long-term portion of debt and capital lease obligations |  | $ | 142 |  |  | $ | 355 |
Revolving Line of credit On September 28, 2018, the Company entered into a Loan Agreement with Heritage Bank. The Loan Agreement provided for, among other things, a Revolving Facility with aggregate commitments of $9,000,000. The maturity date for loans under the Revolving Facility is September 28, 2020. As of September 30, 2018, the Company has drawn down $9.0 million under the Revolving Facility. Loans under the Revolving Facility will bear interest at a rate equal to one half of one percentage point (0.50%) above the variable rate of interest, per annum, that appears in The Wall Street Journal from time to time, whether or not such announced rate is the lowest rate available from Heritage Bank. As of the third quarter ended September 30, 2018, the Company had $9.0 million of revolving debt outstanding with an interest rate of 5.75% per annum. The Line of credit facility with Silicon Valley Bank, which matured on September 24, 2018 was fully paid off in July 2018. Financial covenants of the Revolving Facility require the Company to (i) maintain at all times a balance of unrestricted cash in its pledged account not less than the principal amount of all advances owing to Heritage Bank and (ii) maintain at all times, but subject to periodic reporting as of the last day of each quarter, not less than nine months of Remaining Months Liquidity. For purposes of the Revolving Facility, “Remaining Months Liquidity” means (i) unrestriced cash maintained at Heritage Bank (including cash in the Company’s pledged account) minus the outstanding principal amount of the cash advances under the Revolving Facility, divided by (ii) average trailing three (3) month EBITDA. The Company is in compliance with all loan covenants as of September 30, 2018. Capital Leases In July 2018, the Company leased design software under a three-year capital lease at an imputed interest rate of 7.64% per annum. Terms of the agreement require the Company to make annual payments of approximately $64,000 through July 2020, for a total of $191,000. As of September 30, 2018, $115,000 was outstanding under the capital lease, $56,000 of which was classified as a current liability. In December 2017, the Company leased design software under a three-year capital lease at an imputed interest rate of 6.48% per annum. Terms of the agreement require the Company to make annual payments of approximately $52,000 through December 2019, for a total of $156,000. As of September 30, 2018, $95,000 was outstanding under the capital lease, $46,000 of which was classified as a current liability. In December 2017, the Company leased design software under a two-year capital lease at an imputed interest rate of 6.30% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $34,000 through November 2019, for a total of $273,000. As of September 30, 2018, $163,000 was outstanding under the capital lease, $129,000 of which was classified as a current liability. In May 2017, the Company leased design software under a three-year capital lease at an imputed interest rate of 5.48% per annum. Terms of the agreement require the Company to make annual payments of approximately $92,000 through June 2019, for a total of $276,000. As of September 30, 2018, $87,000 was outstanding under the capital lease, all of which was classified as a current liability. In February 2017, the Company leased design software under a three-year capital lease at an imputed interest rate of 5.57% per annum. Terms of the agreement require the Company to make annual payments of approximately $44,000 through February 2019, for a total of $133,000. As of September 30, 2018, $42,000 was outstanding under the capital lease, all of which was classified as a current liability. In December 2015, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.88% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $23,000 through November 2017, for a total of $182,000. The lease was paid off in November 2017. In July 2015, the Company leased design software under a three-year capital lease at an imputed interest rate of 4.91% per annum. Terms of the agreement require the Company to make annual payments of approximately $67,000 through July 2017, for a total of $202,000. The lease was fully paid off in July 2017.

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- Definition The entire disclosure for debt and capital lease obligations can be reported. 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. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: 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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