Subsequent events

12 Months Ended

Dec. 31, 2019

Subsequent events [Abstract]

Subsequent events

17. Subsequent events

On February 28, 2020, we entered into an amendment to extend the lease on our facility in Ithaca, New York.  The lease, which was last amended on January 14, 2016, was scheduled to expire on May 31, 2021.  The lease amendment provides for an extension of the lease for four additional years from June 1, 2021 to May 31, 2025. 

On March 13, 2020, we entered into a new $10 million credit facility (the “Siena Credit Facility”) with Siena Lending Group LLC.  The Siena Credit Facility replaced our TD Bank Credit Facility.  The Siena Credit Facility provides for a $10 million revolving credit line expiring on March 13, 2023.  Borrowings under the Siena Credit Facility bear a floating rate of interest equal to the greatest of (i) the prime rate plus 1.75%, (ii) the federal funds rate plus 2.25%, and (iii) 6.50%. We incurred a closing fee of $63 thousand payable 50% on the closing date and 50% on the first anniversary of the closing date.  We also pay a fee of 0.50% on unused borrowings under the facility.  Borrowings under the facility are secured by a lien on substantially all the assets of the Company.  The Siena Credit Facility imposes certain financial covenants on the Company and borrowings are subject to a borrowing base based on (i) 85% of eligible accounts receivable plus the lesser of (a) $5 million and (b) 50% of eligible raw material and 60% of finished good inventory.

On March 13, 2020 we loaned an additional $0.6 million to a third party increasing the total note receivable principal balance to $1.6 million.  Repayment is expected to occur in 12 months or less of original issuance and the terms of the loan are the same as the original loan disclosed in Note 3-Note receivable above.