Debt

3 Months Ended

Mar. 31, 2015

Debt [Text Block]

Note 8 – Debt

		March 31,		December 31,
		2015		2014
Current:
Credit Facility	$	—	$	539
Other third party debt		2,617		—
Counsel Loan		2,053		2,985
		4,670		3,524
Non-current:
Other third party debt		—		2,580
Total debt	$	4,670	$	6,104

     At March 31, 2015 all of the Company’s debt was current, and consisted of a $2,617 loan payable to an unrelated third party (the “Third Party Loan”), and $2,053 of related party debt (the “Counsel Loan”). At December 31, 2014 the Company had current debt of $3,524, consisting of a third party Credit Facility with a balance of $539 and the Counsel Loan with a balance of $2,985. Also, at December 31, 2014, the Third Party Loan was non-current and had a balance of $2,580.

     The Third Party Loan was entered into during the second quarter of 2014, for a principal amount of $2,500. The loan bears interest at 6% and had an original maturity date of January 15, 2015. In December 2014, the maturity date was extended to January 15, 2016 at the same interest rate. The loan is not subject to any covenants or conditions.

     The Counsel Loan was originally entered into during the fourth quarter of 2003, accrued interest at 10% per annum compounded quarterly from the date funds were advanced, and was due on demand. Any outstanding balance under the Counsel Loan was secured by the assets of the Company.

     In the second quarter of 2014, following Counsel’s distribution of its ownership interest in HGI to Counsel shareholders as a dividend in kind, this facility was replaced and the outstanding balance was transferred to a new facility (also the “Counsel Loan”). Under the new facility, payment is due within thirty days following the end of each quarter. Unpaid balances accrue interest at a rate per annum equal to the lesser of the Wall St. Journal ("WSJ")  prime rate + 2.0%, or the maximum rate allowable by law. For 2014 and 2015 the rate was 5.25%. Please see Note 11 for further discussion of transactions with Counsel.

     The Credit Facility that was outstanding at December 31, 2014 was provided to HG LLC by a U.S. bank under the terms and provisions of a certain Loan and Security Agreement (the “Loan Agreement”) originally dated as of June 2, 2009 and most recently amended as of December 1, 2014 (the “Amendment Date”). It was utilized to finance the acquisition of eligible property and equipment for purposes of resale, and bore interest at the greater of the WSJ prime rate + 1.0%, or 4.5%. The maximum borrowing available under the Credit Facility was $15,000. The Credit Facility was repaid in full in March 2015. Subsequent to the repayment of the Credit Facility the Company has not yet obtained equivalent third party financing.