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OBLIGATIONS | 12 Months Ended
--- | ---
Dec. 30, 2018
Debt Disclosure [Abstract] |
OBLIGATIONS | NOTE 5-OBLIGATIONS
|  | December 30, 2018 |  |  | December 31, 2017 |
|  | (in thousands) |
Debt and capital software lease obligations: |  |  |  |  |  |  |  |
Revolving line of credit |  | $ | 15,000 |  |  | $ | 6,000 |
Capital software leases |  |  | 424 |  |  |  | 654 |
|  |  | 15,424 |  |  |  | 6,654 |
Current portion of debt and capital software lease obligations |  |  | (15,316 | ) |  |  | (6,299 | )
Long term portion of debt and capital software lease obligations |  | $ | 108 |  |  | $ | 355 |
Revolving Line of Credit On September 28, 2018, the Company entered into a Loan and Security Agreement (the "Loan Agreement") with Heritage Bank. The Loan Agreement provided for, among other things, a revolving credit facility with aggregate commitments of $9,000,000 (the “Revolving Facility”). The maturity date for loans under the Revolving Facility is September 28, 2020. On December 21, 2018, the Company entered into an Amended and Restated Loan and Security Agreement (the "Amended and Restated Loan Agreement") with Heritage Bank to replace in its entirety the Loan Agreement entered on September 28, 2018. The Amended and Restated Loan Agreement increases the revolving credit facility from $9,000,000 to $15,000,000. Further, the Amended and Restated Loan Agreement eliminates the requirement of maintaining at all times Remaining Months Liquidity of nine months and replaces with a new covenant of maintaining at least $3,000,000 in unrestricted cash at Heritage Bank. The Company is in compliance with all loan covenants as of December 30, 2018. The Bank has a first priority security interest in substantially all of the Company’s tangible and intangible assets to secure any outstanding amounts under the Loan Agreement. On September 25, 2015, the Company entered into the Second Amendment to the Third Amended and Restated Loan and Security Agreement dated September 25, 2015 ("the SVB Loan Agreement") with Silicon Valley Bank ("the Bank") to extend the line of credit for two years through September 25, 2017. The Second Amendment to the SVB Loan Agreement provides for committed loan advances of up to $6.0 million, subject to increases at the Company’s election of up to $12.0 million. Upon each advance, the Company can elect a prime rate advance, which is the prime rate plus the prime rate margin, or a LIBOR rate advance, which is LIBOR plus the LIBOR rate margin. On February 10, 2016, the Company entered into a Third Amendment to Third and Restated Loan and Security Agreement to further modify the covenants. On August 31, 2017, the Company entered into a Fourth Amendment to the Third Amended and Restated Loan and Security Agreement with the Bank to extend the line of credit for one year through September 24, 2018 and replaces the financial covenants of third amendment with new financial covenants. This amendment requires the Company to maintain (i) unrestricted cash or cash equivalents at the Bank or at any of its affiliates at all times in an amount of at least $6,000,000; and (ii) a ratio of quick assets to the results of (i) current liabilities minus (ii) the current portion of deferred revenue plus (iii) the long-term portion of the obligations of at least 1.40 to 1.00, tested as of the last day of each month. The Bank has a first priority security interest in substantially all of the Company’s tangible and intangible assets to secure any outstanding amounts under the SVB Loan Agreement. The SVB Loan Agreement also has certain restrictions including, among others, restrictions on the incurrence of other indebtedness, the maintenance of depository accounts, the disposition of assets, mergers, acquisitions, investments, the granting of liens, cash balances with subsidiaries and the payment of dividends. The Company complied with all the financial covenants of the SVB Loan Agreement as of the loan maturity date. The Line of Credit facility with Silicon Valley Bank, which matured on September 24, 2018, was fully paid off in July 2018. Capital Leases Following table summarizes the capital lease liabilities as of December 30, 2018 and December 31, 2017:
|  | 2018 |  |  | 2017 |
|  | (In thousands) |
Three-year design software lease dated July 2018 at an interest of 7.64% |  | $ | 115 |  |  | $ | — |
Three-year design software lease dated December 2017 at an interest of 6.48% |  |  | 49 |  |  |  | 146 |
Two-year design software lease dated December 2017 at an interest of 6.30% |  |  | 131 |  |  |  | 256 |
Three-year design software lease dated May 2017 at an interest of 5.48% |  |  | 87 |  |  |  | 170 |
Three-year design software lease dated February 2017 at an interest of 5.57% |  |  | 42 |  |  |  | 82 |
|  | $ | 424 |  |  | $ | 654 |
Less: current portion |  |  | 316 |  |  |  | 299 |
|  | $ | 108 |  |  | $ | 355 |
Future minimum lease commitments under the Company’s capital leases are as follows:
|  | Capital leases |
|  | (in thousands) |
Fiscal Years |  |  |  |
2019 |  | $ | 316 |
2020 |  |  | 108 |
|  | $ | 424 |

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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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- References No definition available. + Details
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