Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

Note 5 – Debt

On October 25, 2019, the Company entered into a Loan and Security Agreement (All Assets) (the "Loan Agreement") with MidCap Business Credit LLC ("MidCap"). The Loan Agreement provides the Company with a credit facility comprising a $5,000 revolving line of credit (the "MidCap Facility"). The MidCap Facility matures following the third anniversary of the Loan Agreement. Interest on the amounts outstanding under the Loan Agreement is variable, based upon the three-month LIBOR rate plus a margin of 4.75%, subject to re-set each month. All outstanding indebtedness under the Loan Agreement is secured by all of the assets of the Company and its subsidiaries.

The Loan Agreement contains customary covenants, including restrictions on the incurrence of additional indebtedness, the payment of cash dividends or similar distributions, the repayment of any subordinated indebtedness and the encumbrance, sale or other disposition of assets. In addition, the Company was initially required to maintain minimum availability of $500, with the minimum availability to be reduced to $400 upon the deliverance of an inventory appraisal satisfactory to MidCap, which occurred during the fourth quarter 2019.

The MidCap Facility replaces the Sterling Facility and the Sterling Agreement, which has been terminated.

On December 28, 2016, the Company entered into a Loan and Security Agreement (the "Sterling Agreement") with Sterling National Bank ("Sterling"). The Sterling Agreement provided the Company with a credit facility in an aggregate amount of $8,500 (the "Sterling Facility") consisting of a $5,000 asset-based revolving line of credit (the "Revolver") and a $3,500 amortizing term loan (the "Term Loan"). The Sterling Facility would have matured in December 2019. Interest on the Revolver was variable, based upon the 30-day LIBOR rate (2.52% at December 31, 2018 ) plus a margin of 4.00%. Interest on the Term Loan also was variable, based upon the 30-day LIBOR rate (2.52% at December 31, 2018 ) plus a margin of 4.50%. The Term Loan amortized at the rate of $19 per month. On March 29, 2019, the Company and Sterling entered into a certain Second Amendment to Loan and Security Agreement (the "Second Amendment"), which replaced the existing fixed charge coverage ratio covenant with a minimum liquidity covenant. That covenant obligated the Company to not permit the sum of its unrestricted cash (as described in the Second Amendment) plus availability under the Revolver to drop below $2,000,000 at any time.

In connection with the completion of the sale of the Old Bridge Facility (see Note 4) and entry into the Lease, the Company, R. L. Drake Holdings, LLC, a wholly-owned subsidiary of the Company ("Drake") and Blonder Tongue Far East, LLC, a wholly-owned subsidiary of the Company ("Far East," and together with the Company and RLD, collectively the "Credit Parties") entered into a Consent Under Loan and Security Agreement (the "Consent") with Sterling National Bank (as lender and as administrative agent, "Sterling"). The Consent relates to the Loan and Security Agreement (the "Loan Agreement") entered into by the Credit Parties and Sterling on December 28, 2016. Under the terms of the Loan Agreement, Sterling's consent was required in order for the Company to complete the sale of the Old Bridge Facility. In addition to providing Sterling's consent to the sale, the Consent requires Sterling to execute and deliver a Discharge of Mortgage and Assignment of Leases and Rents (the "Discharge") to effect the discharge of Sterling's interests in the Property (as defined in the Consent) originally granted to Sterling in the Mortgage, Assignment of Leases and Rents, Security Agreement, Fixture Filing and Financing Statement entered into in connection with the Loan Agreement. The Company paid approximately $3,014 to pay off the Term Loan in connection with the Discharge. In addition, the Company paid off the outstanding balance under the Revolver of approximately $2,086.

Long-term debt consists of the following:

	December 31,
	2019			2018
Term loan - repaid in full on February1, 2019	$	-		$	3,053
Financing leases (Note 7)		80			54
		80			3,107
Less:  Current portion		(33	)		(3,075	)
	$	47		$	32

Annual maturities of long term debt at December 31, 2019 are $33 in 2020, $24 in 2021, $11 in 2022, $8 in 2023 and $4 in 2024.