XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Line of Credit and Long Term Debt | 3 Months Ended
--- | ---
Mar. 31, 2018
Line of Credit Facility [Abstract] |
Long-term Debt [Text Block] |
9. | Line of Credit and Long Term Debt
Commercial Loan Agreement Facility On June 15, 2017, the Company entered into a Loan and Security Agreement with Access National Bank (the “Loan Agreement”). The Loan Agreement provides for a $5.0 million working capital revolving line of credit. Effective April 30, 2018, the Company entered into a modification agreement (“Modification Agreement”) with Access National Bank to amend the existing Loan Agreement. The Modification Agreement extended the maturity date of the facility through April 30, 2019 and added an additional financial covenant requiring the Company to maintain consolidated minimum adjusted earnings before interest taxes, depreciation and amortization (EBITDA) (as defined in the Modification Agreement) of at least two times interest expense to be measured as of the last day of each quarterly period. The Loan Agreement requires that the Company meet the following financial covenants on a quarterly basis: (i) maintain a minimum adjusted tangible net worth of at least $2.0 million, (ii) maintain minimum consolidated adjusted EBITDA of at least two times interest expense and (iii) maintain a current ratio of 1.10:1. The available amount under the working capital line of credit is subject to a borrowing base, which is equal to the lesser of (i) $5.0 million or (ii) 70% of the net unpaid balance of the Company’s eligible accounts receivable. The interest rate for the working capital line of credit is the Wall Street Journal prime rate plus 1.0%. The facility is secured by a first lien security interest on all of the Company’s personal property, including its accounts receivable, general intangibles, inventory and equipment maintained in the United States. As of March 31, 2018, the Company was eligible to borrow up to $4.1 million under the borrowing base formula. Long-Term Debt Long-term debt consisted of the following:
|  | MARCH 31, 2018 |  | DECEMBER 31, 2017 |
|  | Current |  | Non-Current |  |  |  |  | Current |  | Non-Current |  |  |  |
|  | Portion |  | Portion |  | Total |  | Portion |  | Portion |  | Total |
|  | (Unaudited) |
Capital Lease Obligations (1) |  | $ | 103,172 |  | $ | 207,860 |  | $ | 311,032 |  | $ | 101,591 |  | $ | 232,109 |  | $ | 333,700 |
Total Long Term Debt |  | $ | 103,172 |  | $ | 207,860 |  | $ | 311,032 |  | $ | 101,591 |  | $ | 232,109 |  | $ | 333,700 |
Deferred Rent Liability (2) |  |  | 73,223 |  |  | 65,630 |  |  | 138,853 |  |  | 70,021 |  |  | 78,336 |  |  | 148,357 |
Short term installment borrowings (3) |  |  | 76,446 |  |  | - |  |  | 76,446 |  |  | 133,250 |  |  | - |  |  | 133,250 |
Total Other Term Obligations |  | $ | 149,669 |  | $ | 65,630 |  | $ | 215,299 |  | $ | 203,271 |  | $ | 78,336 |  | $ | 281,607 |
Total Long Term Debt and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term Obligations |  | $ | 252,841 |  | $ | 273,490 |  |  |  |  | $ | 304,862 |  | $ | 310,445 |  |  |  |
(1) As more fully described in Note 7, the Company entered into capital leases to acquire computer hardware and software for its client facing infrastructure and two automobiles that expire between 2020 and 2021. (2) The Company has two significant long term building lease obligations that contain fixed rent escalations and rent abatements. The Company has recognized a deferred rent liability related to the difference between actual cash rent paid and rent recognized for financial reporting purposes. (3) The Company annually finances the cost of its commercial liability insurance premiums for a period of less than 12 months. Capital Lease Obligations Minimum lease payments required under capital leases range from $695 to $8,900, respectively, and these leases expire in March 2020. The following sets forth the Company’s future minimum payment obligations under these capital lease agreements for fiscal years ending March 31 (Unaudited):
2018 |  | $ | 123,747 |
2019 |  |  | 123,747 |
2020 |  |  | 99,600 |
Total principal and interest payments |  |  | 347,094 |
Less: portion representing interest |  |  | 36,062 |
Present value of minimum lease payments under capital lease agreements |  |  | 311,032 |
Less: current portion |  |  | 103,172 |
Capital lease obligations, net of current portion |  | $ | 207,860 |

X
- References No definition available. + Details
Name: | us-gaap_LineOfCreditFacilityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration