|12 Months Ended|
Dec. 31, 2015
|Debt Disclosure [Abstract]|
5. Long-term debt
JP Morgan Chase debt
In November 2014, the Company secured a primary banking relationship that provides access to a $15,000 working capital revolving line of credit, and treasury and cash management services through commercial banking with JP Morgan Chase. This agreement is a three-year working capital revolving line of credit which replaced the previous loan facility the Company maintained with Comerica. The interest rate on outstanding debt balances will be London Interbank Offer Rate (LIBOR) plus 1.25%.
The Company is required to maintain a minimum tangible net worth of $90,000 and EBITDA of $10,000 for any period of four consecutive quarters. Beginning with the second quarter of 2016, the EBITDA requirement will increase to a $12,500 minimum calculation. As of December 31, 2015, the Company had $32,401 in EBITDA and was required to have $10,000. In addition, the Company had a tangible net worth of $133,789 and was required to have $90,000. The revolving line of credit also restricts the Company’s ability to pay dividends. The Company may pay dividends, share repurchases or acquisitions in the aggregrate not to exceed $1,000 in any fiscal year provided that no event of default has occurred. As of December 31, 2015, the Company had no outstanding borrowings under the revolving line of credit.
The contractual obligations schedule below relates to the acquisition of patents which are reflected in intangible assets and were acquired in 2011.
As of December 31, 2015, the minimum aggregate payments due under non-cancelable debt are summarized as follows:
The entire disclosure for long-term debt.
Reference 1: http://www.xbrl.org/2003/role/presentationRef