Subsequent Events

6 Months Ended

Jun. 30, 2018

17.Subsequent Events

On July 23, 2018, the Company and its domestic subsidiaries entered into the Twelfth Amendment to the Loan and Security Agreement with CIBC Bank USA. The amendment, among other things:


	•	Increased IntriCon’s capex loan facility capacity to $10 million from its then current capacity of $2.5 million. The Company at its election, can draw up to $10 million on the loan for qualifying capital expenditures through June 30, 2019, with monthly amortization commencing after such time;

	•	Increased IntriCon’s revolving credit facility capacity to $11.0 million from its then current capacity of $9.0 million;

	•	Raised the inventory cap on the borrowing base from $4.5 million to $5.0 million. Under the revolving credit facility as amended, the availability of funds depends on a borrowing base composed of stated percentages of the Company’s eligible trade receivables and inventory, less a reserve;,

	•	Increased the annual capital expenditures allowed under the facilities from its current limit of $5.5 million to $12.0 million for the fiscal year ending December 31, 2018 and $5.5 million in the aggregate in the fiscal year ending December 31, 2019 or in any fiscal year thereafter; and

	•	Lowered applicable interest rates by 0.25%.