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15. Subsequent Events
The
Company evaluated subsequent events and transactions that occurred after the balance sheet date through May 9, 2024, the date that these
consolidated financial statements were available to be issued. Based upon this review, the Company did not identify any subsequent events
that would have required adjustment or disclosure in the consolidated financial statements other than the below.
Credit
Facility
On
May 8, 2024, the Company entered into an amendment to its Loan Agreement, as amended, with its lender which provided the following, among
other things:
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removes
the quarterly FCCR testing requirement for the first and second quarters of 2024; |
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reinstates
the quarterly FCCR testing requirement starting in the third quarter of 2024 and revises the methodology to be used in calculating
the FCCR as follows (with no change to the minimum 1.15:1 ratio requirement): FCCR for the third quarter is to be determined based
on financial results for the three-months period ending September 30, 2024; FCCR for the fourth quarter is to be determined based
on financial results for the six-months period ending December 31, 2024; FCCR for the first quarter of 2025 is to be determined based
on financial results for the nine-months period ending March 31, 2025; and FCCR for the second quarter of 2025 and each fiscal quarter
thereafter is to be determined based on financial results for a trailing twelve-months period ending basis; |
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requires
maintenance of a daily minimum $2,250,000 in borrowing availability under the revolving credit through June 29, 2024, and a minimum
of $3,000,000 in borrowing availability starting June 30, 2024, through June 29, 2025; and |
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in
the event the Company is able to achieve its minimum quarterly FCCR requirement utilizing its financial results based on a trailing
twelve-months period starting with the quarter ending June 30, 2024, the maintenance of a daily minimum borrowing availability requirement
of $3,000,000 as discussed above will be removed. Any subsequent fiscal quarter testing of the FCCR will revert back to a trailing
twelve-months period method. |
In
connection with the amendment, we paid our lender a fee of $25,000.
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