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Note payable Senior Secured Credit Facilities
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Long-term Debt

Note 10

 

Long-term Debt:

 

On January 6, 2016, PhotoMedex, Inc. received an advance of $4 million, less a $40 financing fee (the “January 2016 Advance”), from CC Funding, a division of Credit Cash NJ, LLC, (the "Lender"), pursuant to a Credit Card Receivables Advance Agreement (the "Advance Agreement"), dated December 21, 2015.  The Company’s domestic subsidiaries, Radiancy, Inc.; PTECH; and Lumiere, Inc., are also parties to the Advance Agreement (collectively with the Company, the “Borrowers”). Each Advance was secured by security interest in defined collateral representing substantially all the assets of the Company. Concurrent with the funding of the loan agreement, the Company established a $500 cash reserve account in favor of the lender to be used to make loan payments in the event that weekly remittances, net of sales return credits and other bank charges or offsets, are insufficient to cover the weekly repayment amount due the lender. The balance in the reserve account was $396 as of June 30, 2016. The advance was paid in full on July 29, 2016 and the security interest in the defined collateral was released from lien.

 

Subject to the terms and conditions of the Advance Agreement, the Lender will make periodic advances to the Company (collectively with the January 2016 Advance and the April 2016 Advance described below, the “Advances”). The proceeds can be used for general corporate purposes.

 

All outstanding Advances will be repaid through the Company’s existing and future credit card receivables and other rights to payment arising out of our acceptance or other use of any credit or charge card (collectively, “Credit Card Receivables”) generated by activities based in the United States.

 

On April 29, 2016 the Company received an additional advance of $1 million, less a $10 financing fee (the “April 2016 Advance”), from the Lender pursuant to the Advance Agreement

 

On June 17, 2016, the Company received an advance of $550, less a $50 financing fee (the “June 2016 Advance”), from the Lender pursuant to the Advance Agreement.

 

The outstanding balance under the Advance Agreement as of June 30, 2016 was $1.1 million, and is included in Notes payable in the accompanying condensed consolidated balance sheet.

 

Additionally the Company gained access to previously restricted cash amounts of $724 that was held in escrow as of the one year anniversary of the sale of the XTRAC and VTRAC business on June 22, 2015 from which $125 was paid to MELA Science. In addition to the $396 reserve account, restricted cash as of June 30, 2016 also includes $119 which reflects amounts collected by the Lender awaiting remittance to the Company which were received after June 30, 2016. Restricted cash also includes $91 reflecting certain commitments connected to our leased office facilities in Israel.

 

On May 12, 2014, the Company entered into an $85 million senior secured credit facilities (“the Facilities”) with JP Morgan Chase as part of its acquisition of LCA-Vision. This loan was paid in full and all liens released on June 23, 2015. See Item 1, The Company, and Note 10, Long-Term Debt, in the Company’s Form 10-K for the year ending December 31, 2015 for further information on this transaction.