Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.3.0.814
Debt
9 Months Ended
Sep. 30, 2015
Debt [Abstract]  
Debt

Note 11 - Debt

 

Debt as of September 30, 2015 and December 31, 2014 consisted of the following (in thousands):

 

    September 30,
2015
    December 31, 
2014
 
Short-Term Debt            
Advances payable   $ 722     $ 722  
Notes payable     70       423  
Revolving line of credit     4,820       3,898  
Term loan     667       375  
Total Short-Term Debt   $ 6,279     $ 5,418  
                 
Long-Term Debt                
Notes payable   $ 382     $ 100  
Term loan, non-current portion     1,111       --  
Total Long-Term Debt   $ 1,493     $ 100  

 

Advances Payable

 

During the year ended December 31, 2011, a judgment in the amount of $936,000 was levied against Sysorex Arabia LLC in favor of Creative Edge, Inc. in connection with amounts advanced for operations.  Of that amount, $214,000 has been repaid leaving a balance of $722,000 of which $515,000 will be paid through a surety bond and the remaining $207,000 has been accrued as advances payable by Sysorex Arabia as of September 30, 2015 and December 31, 2014.

 

Revolving Line of Credit and Term Loan

 

On May 4, 2015 (effective as of April 29, 2015), the Company and Bridge Bank entered into Amendment 4 to Bridge Bank’s Business Financing Agreement (“BFA”) dated March 15, 2013 to add the Company, Sysorex Federal, AirPatrol and Shoom as borrowers under the agreement, amend certain financial covenants, increase the credit limit to $10.0 million and provide for a second term loan of $2 million which matures on April 29, 2018 of which $167,000 was used to pay off the balance of the initial term loan. The term loan accrues interest at the greater of 5.25% or Bridge Bank's prime rate plus 2%. The Company will make payments of $56,000 on the term loan on the first day of each month commencing on May 1, 2015 until the loan amount is paid in full. The balance due on the term loan is scheduled to be paid in full during the year ending December 31, 2018.

 

On October 7, 2015, the Company, and certain of its wholly-owned subsidiaries (collectively, the “Borrowers”), entered into Amendment 5 (the “Amendment”), effective as of September 30, 2015, to the BFA, with Western Alliance Bank, as successor in interest to Bridge Bank, N.A. Pursuant to Amendment 5, the original lender, Bridge Bank, N.A., was replaced by Western Alliance Bank, as successor in interest to Bridge Bank, N.A. and the lender under the Agreement. The Amendment also amended certain financial covenants of the Borrowers required by the Agreement. All other terms remained the same.