DEBT AND INTEREST EXPENSE
|6 Months Ended|
Jun. 30, 2023
|DEBT AND INTEREST EXPENSE|
|DEBT AND INTEREST EXPENSE||
NOTE 13. DEBT AND INTEREST EXPENSE
The Company’s debt obligations at June 30, 2023 and December 31, 2022 were as follows:
East West Bank Line of Credit and Long-Term Debt
In July 2023 the Company voluntarily repaid the entire $10.0 million outstanding term loan principal balance. The repayment satisfied all of the Company’s outstanding debt obligations under the EWB Facility. The Company has no further obligations to EWB.
On May 16, 2023, the Company entered into the 2023 Amendment that effected several changes to the EWB facility. Under the 2023 Amendment, the Company paid down $10.0 million of the term loan upon the closing of the 2023 Amendment. The term loan previously contained an interest-only payment period through January 12, 2024, after which the outstanding balance of the term loan was to have been payable in equal monthly installments of principal, plus all accrued interest, through the term loan maturity date. The 2023 Amendment revised the maturity date of the term loan from January 12, 2026 to July 1, 2024 and provided that the Company was no longer required to make monthly installments of principal of the term loan, and instead, was required to make interest-only payments until the maturity date, at which time all principal and all accrued interest would be due. The Company was permitted to prepay all or any part of the term loan without penalty or premium, but could not re-borrow any amount once repaid. The 2023 Amendment removed
the revolving line of credit from the EWB Facility effective as of the date of the 2023 Amendment. Under the 2023 Amendment, the Company was required to maintain a minimum required cash balance of $8.75 million in deposit accounts with EWB.
Interest expense and financing fees
Interest expense consisted of the following:
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef