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Bank Debt and Other Debt
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Bank Debt and Other Debt

NOTE 11—BANK DEBT AND OTHER DEBT

 

(a) Lines of credit

 

The Company's DSIT subsidiary has lines-of-credit of approximately $1,180 from two Israeli banks (approximately $540 at one bank and $640 at the second), $979 of which was being used at December 31, 2015.  The lines-of-credit are subject to certain financial covenants. DSIT was in compliance with its financial covenants at December 31, 2015. The line-of-credit at one bank expires in June 2016 and the line at the second bank expires in February 2017. The lines-of-credit are denominated in NIS and bear interest at a weighted average rate of 3.1% per annum. The interest rate of one of the lines is linked to the Israeli prime rate. The Israeli prime rate as of December 31, 2015 was 1.60% (December 31, 2014, 1.75%).

 

With respect to DSIT’s lines-of-credit, liens in favor of the Israeli banks were placed on DSIT’s assets. In addition, Acorn has guaranteed DSIT’s line-of-credit.

 

In addition, to the above lines-of-credit, in December 2014, DSIT entered in an agreement with another bank to allow DSIT to borrow against certain accounts receivable balances at an interest equal to the Israeli prime rate plus 1.8%. At December 31, 2015, DSIT had borrowed $862 against certain accounts receivable balances.

 

The Company's GridSense subsidiary has a working agreement with its bank to allow GridSense to borrow against 80% of certain accounts receivable balances up to $750 for a period of one year (to July 16, 2016) at an interest equal to 1.25% per month. At December 31, 2015, GridSense was utilizing approximately $138 of its accounts receivable line.

 

GridSense has granted a lien to its bank on substantially all of its assets other than intellectual property. GridSense has further promised not to grant a lien on their intellectual property to any other party, nor commit to any such party to abstain from giving a lien.

 

(b) Bank Debt

 

In July 2014, DSIT took a loan from one of its banks. The loan was for NIS 1,000 (approximately $292 at the then exchange rate) and is to be repaid over a period of two years with monthly payments of approximately $11. The loan principal is linked to the Israeli CPI and bears interest at 1.0% per annum. Total amounts due with respect to the loan are $75 and $205 at December 31, 2015 and 2014, respectively.

 

(c) Summary

 

    As of December 31,  
    2014     2015  
DSIT line-of-credit   $ 2,169     $ 979  
DSIT borrowings against receivables     262       862  
GridSense line-of-credit     1,480       —  
GridSense borrowings against receivables     379       138  
DSIT term loan     205       75  
Total bank debt and borrowings against receivables     4,495       2,054  
Less non-current portion     76       —  
Short-term bank credit and current maturities of long-term debt   $ 4,419     $ 2,054