Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

18. Subsequent Events

The Company has evaluated events that have occurred subsequent to June 30, 2020 and through August 13, 2020, the date of the filing of this report.

Loan and Security Agreement with East West Bank

As previously reported in a Current Report on Form 8-K filed July 28, 2020, on July 22, 2020, the Company entered into a Loan and Security Agreement (the “Agreement”) with East West Bank. In accordance with the terms of this Agreement, the Company has the ability to borrow term loans in an aggregate principal amount not to exceed $10 million during the two year period after July 22, 2020. The Company’s obligations under the Agreement are secured by a lien on all of the Company’s cash, dividends, stocks and other monies and property from time to time received or receivable in exchange for the Company’s equity interests in and any other rights to payment from the Company’s subsidiaries; any deposit accounts into which the foregoing is deposited and all substitutions, products, proceeds (cash and non-cash) arising out of any of the foregoing.

Term loans made pursuant to the Agreement shall bear interest, at the Company’s option, (i) at the prime rate, as reported by the Wall Street Journal, or (ii) 3.0% above the LIBOR rate, provided that the minimum interest rate on any term loan will not be less than 3.25%. As of the end of July 2020, the Company has drawn down approximately $5.0 million under this agreement.

In addition, the Company’s obligations under the Agreement are guaranteed pursuant to a guarantee agreement by and among, John J. Gebbia, individually and as a co-trustee of the John and Gloria Living Trust, U/D/T December 8, 1994 (the “Trust”) and Gloria E. Gebbia, individually and as a co-trustee of the Trust.

Other than the events described above, there have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of June 30, 2020.