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Note 15 - Subsequent Events
6 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Subsequent Events [Text Block]

Note 15. Subsequent Events

 

The Company has determined that there are no material subsequent events exist other than the following:

 

Loan and Security Agreement

 

On July 9, 2020, the Company and Silicon Valley Bank entered into a Loan and Security Agreement. The agreement provides for a four-year secured revolving loan facility in an aggregate principal amount of up to $30.0 million. In order to draw on the full amount, the Company must satisfy certain liquidity ratios. If the Company is unable to meet these liquidity ratios, then availability under the revolving line is calculated as 80% of the Company’s qualifying accounts receivable. The Company must also meet certain quarterly revenue   targets on a trailing twelve-month basis as part of the financial covenants. This clause is subject to renegotiation at the beginning of each fiscal year. The proceeds of the revolving loans may be used for general corporate purposes. The Company’s obligations under the Loan Agreement are secured by substantially all of the assets of the Company. On the same day, the Company terminated its undrawn revolving line of credit with Wells Fargo Bank, N.A. (as referenced in Note 13).

 

Headquarters Office Lease Amendment

 

On July 9, 2020, the Company amended its lease agreement for its headquarters building located at 3420 Bayshore Boulevard, Brisbane, California. The amendment provides for the following:

 

 

the extension of the lease term, with the extended term to begin on February 1, 2023 and continue until January 31, 2028;

 

the abatement of the monthly base rent for the four month period beginning September 1, 2020 and ending December 31, 2020;

 

the amendment of monthly base rent for the current term and the extension term to approximately $0.2 million for January 2021 with annual increases of 3.5% thereafter; and

 

the waiver by the Company of its early termination right in the lease.