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Note 22 - Subsequent Event
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 22 SUBSEQUENT EVENT

 

On October 1, 2021, the Company acquired 100% of the outstanding equity interests of  Ravix Financial, Inc. ("Ravix") for aggregate cash consideration of approximately $11.0 million, less certain escrowed amounts for purposes of indemnification claims and working capital adjustments.  The Company will also pay additional contingent consideration, only to the extent earned, in an aggregate amount of up to $4.5 million, which is subject to certain conditions, including the successful achievement of gross profit for Ravix during the three-year period commencing on the first full calendar month following the acquisition date.  Ravix, based in San Jose, California, provides outsourced financial services and human resources consulting for short or long duration engagements.  Ravix's balance sheet and results of operations will be included in the consolidated financial statements of the Company, beginning with the fourth quarter of 2021.

 

The acquisition was financed with a combination of debt financing provided by Avidbank, and cash on hand.  Ravix Acquisition LLC, a wholly-owned subsidiary of the Company, together with Ravix, borrowed a total of $6.0 million, in the form of a term loan, and established a $1.0 million revolver (together, the "Loan") that was undrawn at close.  The Loan has a variable interest rate, with the initial annual interest rate equal to 3.75%. The Loan requires monthly principal and interest payments and the term loan matures on  October 1, 2027.