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DEBT

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

10. DEBT

On March 24, 2016, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with BankUnited, N.A. (“BankUnited”) as a lender and the sole arranger, administrative agent and collateral agent and Citizens Bank N.A. (the “BankUnited Facility”). The BankUnited Facility provided for a revolving credit loan commitment of $30 million (the “Revolving Loan”) and a $10 million term loan (“Term Loan”). The Revolving Loan bears interest at a rate based upon a pricing grid, as defined in the agreement.

On June 25, 2019, the Company entered into a Fifth Amendment (the “Fifth Amendment”) to the Credit Agreement. Under the Fifth Amendment, the parties amended the Credit Agreement by extending the maturity date of the Company’s Revolving Loan and Term Loan to June 30, 2021 and making conforming changes to the repayment schedule of the Term Loan. Additionally, in connection with the Fifth Amendment, Citizens Bank, N.A. assigned all of its obligations under the BankUnited Facility to BNB Bank.

As of June 30, 2020, the Company had $26.7 million outstanding under the Revolving Loan bearing interest at 6.25%. As of June 30, 2020, the Revolving Loan had a maturity date of June 30, 2021.

The Term Loan had an initial amount of $10 million, payable in monthly installments, as defined in the agreement, as of June 30, 2020, with a maturity date of June 30, 2021.

The BankUnited Facility was further amended, and certain covenant violations were waived, in August 2020 and the maturity date of the Company’s Revolving Loan and Term Loan were extended to May 2, 2022. See Note 13-Subsequent Events for additional details.

The maturities of long-term debt (excluding unamortized debt issuance costs) are as follows:

Twelve months ending June 30,

2021 $ 4,728,515

2022 2,861,709

2023 156,578

2024 59,705

Total $ 7,806,507

The BankUnited Facility is secured by all of the Company’s assets.

The Company has cumulatively paid approximately $488,000 of total debt issuance costs in connection with the BankUnited Facility, of which approximately $15,000 is included in other assets at June 30, 2020.

On April 10, 2020, the Company entered into a loan with BNB Bank as the lender (“Lender”) in an aggregate principal amount of $4,795,000 (“PPP Loan”) pursuant to the Paycheck Protection Program, part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The PPP Loan is evidenced by a promissory note (“Note”). The PPP Loan has an initial term of two years, and is unsecured and guaranteed by the Small Business Administration. Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1%) per annum, with interest deferred until the Small Business Administration determines whether the PPP Loan will be forgiven. The amount of the PPP Loan which may be forgiven is equal to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the 24-week period beginning on April 10, 2020, calculated in accordance with the terms of the CARES Act, as modified by the Paycheck Protection Flexibility Act. On October 16, 2020, the Company applied to the Lender for full forgiveness of the PPP Loan. On November 2, the Company was notified that the Lender approved the application and submitted it to the SBA for final approval in accordance with the applicable provisions of the CARES Act. We cannot assure you that the PPP Loan will be forgiven in full, or at all. See Risk Factors for more information.

In addition to the Term Loan and PPP Loan, included in long-term debt are financing leases of $414,102 including a current portion of $314,072.