5.	NOTES PAYABLE

The Company’s long term debt consists of the following:

	September 30, 2018			December 31, 2017
Term Loans	$	38,897		$	1,067
Less: current portion		(3,623	)		(1,067	)
Less: unamortized debt issuance costs		(165	)		—
Notes payable, net of current portion	$	35,109		$	—

The balance on the Company’s former term note with US Bank was paid in full in

March 2018.

April 18, 2018,

in connection with the Recapitalization, the Company entered into a credit agreement (the “Credit Agreement”) with FNB providing for (i) a

$15,000,000

revolving credit facility (the “Line of Credit”), (ii) a

$40,000,000

term loan (the “Term Loan”) and (iii) a

$15,000,000

delayed draw-dawn term facility (the “Delayed Draw Term Loan” and, together with the Line of Credit and the Term Loan, the “Credit Facilities”). The Company used the Term Loan to fund, in part, the cash portion paid to holders of the Company’s then-existing class B common stock in connection with the Recapitalization and the accompanying exchange of outstanding equity awards tied to the class B common stock, as well as for the costs of the Recapitalization. The Delayed Draw Term Loan

may

be used to fund any permitted future business acquisitions or repurchasing of the Company’s Common Stock and the Line of Credit will be used to fund ongoing working capital needs and other general corporate purposes, including to pay the fees and expenses incurred in connection with the Recapitalization and the Credit Agreement.

The Term Loan is payable in monthly installments of

$462,988

through

April 2020

and

$526,362

thereafter, with a balloon payment due at maturity in

April 2023.

The Term Loan bears interest at a fixed rate of

5%.

Borrowings under the Line of Credit and the Delayed Draw Term Loan, if any, bear interest at a floating rate equal to the

-day London Interbank Offered Rate plus

225

basis points (

4.36%

September 30, 2018).

Interest on the Line of Credit accrues and is payable monthly. Principal amounts outstanding under the Line of Credit are due and payable in full at maturity, in

April 2021.

As of

September 30, 2018,

the Line of Credit did

not

have a balance. The weighted average borrowings on the Line of Credit for the

three

and

nine

months ended

September 30, 2018

was

$587,000

and

$486,000

respectively. The weighted average interest on borrowings on the Line of Credit for the

three

and

nine

months ended

September 30, 2018

was

4.35%

and

4.25%,

respectively. There have been

borrowings on the Delayed Draw Term Loan since origination.

The Company paid a

one

-time fee equal to

0.25%

of the amount borrowed under the Term Loan at the closing of the Credit Facilities. The Company is also obligated to pay ongoing unused commitment fees quarterly in arrears pursuant to the Line of Credit and the Delayed Draw Term Loan facility at a rate of

0.20%

per annum based on the actual daily unused portions of the Line of Credit and the Delayed Draw Term Loan facility, respectively.

The Credit Agreement is collateralized by substantially all of the Company’s assets and contains customary representations, warranties, affirmative and negative covenants (including financial covenants) and events of default. The negative covenants include, among other things, restrictions regarding the incurrence of indebtedness and liens, repurchases of the Company’s Common Stock and acquisitions, subject in each case to certain exceptions. The Credit Agreement also contains certain financial covenants with respect to a minimum fixed charge coverage ratio of

1.10x

and a maximum cash flow leverage ratio of

3.00x

or less. As of

September 30, 2018,

the Company was in compliance with its financial covenants.

Scheduled maturities of notes payable at

September 30, 2018

are as follows:

Remainder of 2018	$	901
2019		3,715
2020		4,418
2021		4,916
2022		5,171
Thereafter		19,776