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SUBSEQUENT EVENTS
6 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events through the filing date and noted no subsequent events, other than those disclosed below, that are reasonably likely to impact the financial statements.

 

Corporate Office Lease

 

On January 4, 2019, the Company reached an agreement to lease office space of approximately 9,800 square feet at 5288 Commerce Drive, Suite D-292, Murray, UT 84107. The Company will relocate its corporate headquarters from a downtown high-rise in Salt Lake City to a more reasonably priced location. Rent commences on March 1, 2019. Rent is $10,200 per month. The initial term is for three years with two additional three year option renewals.

 

Stand-Alone Revolving Note Amendment

 

On January 9, 2019, the Company and U.S. Bank N.A. (the “Bank”) entered into an amendment to the outstanding Stand-Alone Revolving Note dated February 12, 2018. Pursuant to the Amendment, the parties agreed to (i) extend the maturity date to December 31, 2019; (ii) increase the maximum borrowing amount to $6.0 million; (iii) increase the interest rate to 1.75% per annum plus the greater of zero percent or one-month LIBOR, (iv) convert the Note from a secured instrument to an unsecured instrument; provided, however, that the Company must maintain liquid assets equal to the outstanding balance of the Note, and (v) to add a provision requiring the Company to maintain a Senior Funded Debt to EBITDA Ratio of not more than 2:1.

 

Master Lease Agreement

 

On January 9, 2019, the Company also entered into a Master Lease Agreement with the Bank, pursuant to which the parties agreed that the Bank will finance up to $1.0 million of equipment and services related to the Company’s information technology expenditures and build-out of its new corporate facility, which it will then lease back to the Company. Specific terms related to future purchases shall be set forth in various schedules, which shall be entered into by the parties from time to time, and which shall incorporate the terms of the Master Lease Agreement.