Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Pursuant to the Sixth Amendment to A&R Credit Agreement dated as of August 9, 2018 (the “Sixth Amendment”), SWK agreed to lend an additional $0.8 million (the “Sixth Amendment Term Loan”) to the Company under the same payment terms and subject to the same conditions as the Fifth Amendment. All principal and accrued interest on the Sixth Amendment Term Loan, the Fifth Amendment Term Loan with a principal balance of $5.0 million, the August 2017 Term Loan with a principal balance of $1.75 million, and the May 2018 Term Loan with a principal balance of $1.5 million will be due and payable on September 4, 2018. The other terms and conditions of the Sixth Amendment Term Loan, the Fifth Amendment Term Loan, the May 2018 Term Loan, and the August 2017 Term Loan are the same as those applicable to the primary term loan advanced by SWK to the Company under the Credit Agreement.

In 2016, the Company filed a lawsuit against a channel partner for breach of contract alleging lost profit damages. The partner filed a counterclaim against the Company for failure to pay for services rendered. On August 1, 2018, the court ruled that the contract was breached but awarded only nominal damages due to a limitation provision in the contract. The court also ruled in favor of the partner’s counterclaim awarding them the value of the outstanding invoices plus interest. The liability for services has been previously recorded in accounts payable, however the Company will also be required to pay interest in the amount of $111,000 which has been accrued for at June 30, 2018. The Company is still considering its options with respect to this ruling.