XML 23 R11.htm IDEA: XBRL DOCUMENT v3.4.0.3
Debt
3 Months Ended
Apr. 30, 2016
Debt Disclosure [Abstract]  
Debt

5. Debt

In April 2012 and December 2012 the Company entered into a secured debt agreement (“Term Debt”) and the line of credit (“the Revolver”) with its current lender with original maturity of September 2015 and July 2016, respectively. In July 2015, the Company repaid the outstanding debt of $5.3 million under these agreements using a portion of the IPO proceeds.

In January 2015, the Company entered into an amended line of credit under a loan and security agreement with its current lender which increased the amount available under the Revolver to $12.0 million and added a new line of credit of up to $10.0 million. The original maturity date of the line of credit was January 2018. The Company repaid the outstanding debt of $5.0 million under the line of credit in July 2015 using a portion of the IPO proceeds. In connection with the agreement, the Company issued warrants to purchase 76,630 shares of the Company’s common stock with an exercise price of $6.04 per share that are exercisable until January 2025. As of April 30, 2016, these warrants remained outstanding.

As of April 30, 2016, the amount available under the Revolver agreement was $12.0 million. The interest rate on the Revolver is 2.75% above the prime rate (3.5% at April 30, 2016). The Revolver includes a financial covenant that the Company is required to have a certain number of subscribers at the end of each quarter. The Revolver matures in July 2016.

The Company has certain non-financial covenants in connection with the borrowings.  As of April 30, 2016 and January 31, 2016, the Company was in compliance with all the covenants under the Revolver agreement.

Total interest expense recognized was $18,000 and $0.3 million for the three months ended April 30, 2016 and 2015, respectively. Total amortization of debt issuance costs recognized was $0 and $44,000 for the three months ended April 30, 2016 and 2015, respectively.

As of January 31, 2016, $0.6 million of the debt on the consolidated balance sheet related to equipment acquired under capital lease was repaid by the Company in April 2016.