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DEBT (Tables) | 3 Months Ended
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Mar. 31, 2017
Debt Disclosure [Abstract] |
Schedule of debt |
|  | Dollars in Thousands
|  | March 31, 2017 |  | December 31, 2016
Revolving Line of Credit(1) |  | $ | 3,243 |  |  | $ | 3,243 |
Term Loan(2) |  | 4,000 |  |  | 4,000 |
Convertible Promissory Notes (3) |  | 125 |  |  | 571 |
Total debt |  | 7,368 |  |  | 7,814 |
Current portion of long-term debt |  | (7,368 | ) |  | (7,814 | )
Long-term debt, net of current maturities |  | $ | — |  |  | $ | — |
(1) | Revolving Line of Credit. Amounts advanced under the Revolving Line accrue interest at an annual rate equal to the greater of (a) 6.25% or (b) the Wall Street Journal prime rate plus 3%. The current interest rate is 6.75%. As discussed below under Additional Terms, the interest rate is subject to increase if there is a default under the Loan Agreement. Interest is payable on a monthly basis, with the balance payable at the maturity of the Revolving Line. Under the Loan Agreement, we pay the Lenders a commitment fee of $20,000 on each one-year anniversary of March 13, 2013, the Effective Date, during the term of the Revolving Line. In addition, a fee of 0.5% per annum is payable quarterly on the unused portion of the Revolving Line. The Revolving Line matures on November 1, 2017.
(2) | Term Loan. We received $4.0 million under the Term Loan on the Effective Date. Pursuant to the terms of the Loan Agreement, as amended, the maturity date of the Loan Agreement was extended until November 1, 2017 and no principal payments on the Term Loan are due until such date. The current interest rate is 9.1%. As discussed below, the interest rate is subject to increase if there is a default under the Loan Agreement.
We will pay the Lenders an additional final payment of $120,000, at maturity or prepayment of the Term Loan, which has been recorded and is reflected in accrued expenses at March 31, 2017 and December 31, 2016. In addition, if we repay the Term Loan prior to maturity, we will pay the Lenders a prepayment penalty of 1% of the total outstanding balance under the Term Loan. Additional Terms. The Loan Agreement contains affirmative and negative covenants. Under the Loan Agreement, we agreed not to (i) pledge or otherwise encumber our assets other than to the Lenders, (ii) enter into additional borrowings or guarantees, (iii) repurchase our capital stock, or (iv) enter into certain mergers or acquisitions without the Lenders’ consent. Additionally, the Loan Agreement contains a subjective acceleration clause at the discretion of the Lenders. As of March 31, 2017, we were not in compliance with the Loan Agreement, as amended, due to the fact that events of default existed, including our failure to make certain required monthly interest payments. To secure the repayment of any amounts borrowed under the Revolving Line and the Term Loan, we granted the Lenders a security interest in all of our assets. The occurrence of an event of default under the Loan Agreement could result in the acceleration of our obligations under the Loan Agreement, would increase the applicable interest rate under the Revolving Line or Term Loan (or both) by 5% and would permit the Lenders to exercise remedies with respect to the collateral under the Loan Agreement. At March 31, 2017, our applicable interest rates have been increased by 5%. (3) Convertible Promissory Notes. The Notes accrue interest at a rate of 6% per year and matured on December 31, 2016.

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- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
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