Stereotaxis
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10-K
STEREOTAXIS, INC. filed this Form 10-K on 03/15/2019
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8. Long-Term Debt and Credit Facilities

 

As of December 31, 2018 and 2017, there were no contractual principal maturities of debt.

 

The revolving line of credit is secured by substantially all of the Company’s assets. The Company is required under the Credit Agreements to maintain its primary operating account and the majority of its cash and investment balances in accounts with the primary lender.

 

Revolving line of credit

 

The Company has had a working capital line of credit with its primary lender, Silicon Valley Bank, since 2004. The revolving line of credit is secured by substantially all of the Company’s assets. The maximum available under the line is $5.0 million subject to the value of collateralized assets. The Company is required under the revolving line of credit to maintain its primary operating account and the majority of its cash and investment balances in accounts with its primary lender.

 

On April 26, 2018, the Company entered into a First Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the maturity of the revolving line of credit to April 25, 2019. The maximum availability under the revolving line of credit remains at $5.0 million, and provides for an interest rate during a “streamline period” equal to the prime rate subject to a floor of 4.5%. A “streamline period” occurs when the Company has, for each consecutive day in the immediately preceding monthly period, maintained a liquidity ratio greater than 1.75:1.00, and continuing so long as the streamline period has been maintained. Upon the termination of a streamline period, the Company must maintain the streamline threshold each consecutive day for one fiscal quarter, prior to entering into a subsequent streamline period. During non-streamline periods, the interest rate is the prime rate plus 1.5%, subject to a floor of 4.5%. In addition, the amendment requires that the liquidity ratio shall at all times include not less than $1.5 million of the Borrower’s unrestricted cash and cash equivalents maintained at the Bank prior to giving effect to any advance.

 

As of December 31, 2018, the Company had no outstanding debt under the revolving line of credit. Draws on the line of credit are made based on the borrowing capacity one week in arrears. As of December 31, 2018 the Company had a borrowing capacity of $3.3 million based on the Company’s collateralized assets. The Company’s total liquidity as of December 31, 2018, was $14.1 million, which included cash and cash equivalents of $10.8 million. As of December 31, 2018, we were in compliance with all financial covenants of this agreement and we anticipate continued compliance throughout the remainder of 2019.

 

9. Lease Obligations

 

The Company leases its facilities under operating leases. For the years ended December 31, 2018 and 2017 rent expense was $718,736 and $588,197, respectively. The rent expense for the years ended December 31, 2018 and 2017 is net of sublease income of $837,949 and $812,660, respectively.

 

The lease for the Company’s principal executive office space and manufacturing facilities expired on December 31, 2018. On January 10, 2019, the company exercised its remaining renewal option to extend the term of the lease by three years. The lease contains an escalating rent provision which the Company has straight-lined over the term of the lease.

 

The future minimum lease payments under non-cancelable leases as of December 31, 2018 are as follows (excluding any potential sublease income):

 

Year  Operating Lease Payments 
2019  $2,334,382 
2020   2,364,408 
2021   2,404,565 
Total minimum lease payments   7,103,355 

 

10. Convertible Preferred Stock and Stockholders’ Equity

 

The holders of common stock are entitled one vote for each share held and to receive dividends whenever funds are legally available and when declared by the Board of Directors subject to the prior rights of holders of all classes of stock having priority rights as dividends and the conditions of the Revolving Credit Agreement. No dividends have been declared or paid as of December 31, 2018.

 

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