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15. Subsequent Events
The
Company evaluated subsequent events and transactions that occurred after the balance sheet date through November 13, 2024, the date that
these condensed 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 condensed consolidated financial statements other than the
below:
Credit
Facility
On
November 12, 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 third quarter of 2024; |
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reinstates
the quarterly FCCR testing requirement starting in the fourth 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 fourth quarter is to be determined based on financial
results for the three-months period ending December 31, 2024; FCCR for the first quarter
of 2025 is to be determined based on financial results for the six-months period ending March
31, 2025; FCCR for the second quarter of 2025 is to be determined based on financial results
for the nine-months period ending June 30, 2025; and FCCR for the third 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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extends
the required maintenance of a daily minimum of $3,000,000 in Liquidity from the ending date
of June 29, 2025 (and including) to September 29, 2025 (and including); 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
ended September 30, 2024, the maintenance of a daily minimum Liquidity 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, the Company paid its lender a fee of $12,500.
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