| Debt Disclosure [Text Block] |
On July 31, 2018, the Company and its primary lender entered into the Fourth Amendment (the “Fourth Amendment”) to its Credit Agreement, entered into on March 23, 2015 ( as amended, the “Credit Agreement”). The Fourth Amendment allows for, among other things, a loan to the Company for the repurchase of up to approximately 2.8 million shares of capital stock from an individual shareholder, his affiliates, and a second shareholder, in an aggregate amount not to exceed $8.6 million (“Term Loan C”); and allows for capital expenditure financing to the Company for the sole purpose of purchasing medical equipment in an aggregate amount not to exceed $6.4 million (the “Equipment Line”). There were no principal payments due on the Equipment Line until December 31, 2019 at which time it converted to an additional term loan. The Fourth Amendment also made changes to certain financial covenants, specifically, to exclude borrowings used to fund the stock repurchases referenced above from the definition of fixed charges, as defined by the Credit Agreement, and to reduce the minimum required ratio of earnings before depreciation, income taxes and amortization to fixed charges from 1.25:1.0 to 1.15:1.0. In addition, the Amendment eliminates the net worth covenant and the excess cash flow provisions while modifying the quarterly principal payment amounts. Term Loan C matures on December 6, 2021, and the Equipment Line matures on December 31, 2024.
On February 5, 2019, the Company and its primary lender entered into the fifth amendment to its Credit Agreement (the “Fifth Amendment”). Among other things, the Fifth Amendment amended the Credit Agreement to: | | ● | increase our borrowing capacity under the Equipment Line to $8.0 million; | | | ● | revise the definition of earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure, to include additional add-back adjustments for the years ended or ending December 31, 2018 and 2019;
| | | ● | revise the definition of fixed charge coverage ratio for the year ending December 31, 2019 to include an unfinanced portion of capital expenditures of up to $7.0 million for the year ending December 31, 2019;
| | | ● | revise the Credit Agreement’s maximum permitted indebtedness to finance the acquisition, construction or improvement of any fixed or capital assets; and | | | ● | revise the maximum leverage ratio for each of the quarters during December 31, 2018 and December 31, 2019.
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On April 15, 2019, the Company sold for $2.0 million and immediately leased back certain medical equipment in rental service to a third party specializing in such transactions. The leaseback term is 36 months. Because the arrangement contains a purchase option that the Company is reasonably certain to exercise, this transaction did not qualify for the sale-leaseback accounting under ASC 842. The medical equipment remains recorded on the accompanying consolidated balance sheet and the proceeds received have been classified as an Other Financing liability, which is being paid off monthly over the term of the lease. The balance of Other Financing as of December 31, 2019 was $1.6 million. On November 7, 2019, the Company and its primary lender entered into the sixth amendment to the Credit Agreement (the “Sixth Amendment”). The Sixth Amendment amended the Credit Agreement to, among other things: | | ● | provide for a 2019 capital expenditure loan (the “2019 Equipment Line”) commitment of $10.0 million (in addition to the existing Equipment Line of $8.0 million), which may be drawn upon until the earlier of the full commitment being advanced or December 31, 2020, to be used solely to purchase eligible equipment to be used in the Company’s business and in amounts not to exceed 90.0% of the invoiced hard costs of such acquired equipment; | | | ● | increase the commitment for the revolving credit facility (the “Revolver”) under the Credit Agreement to $11.8 million; | | | ● | revise the definition of EBITDA to include the following additional or revised add-back adjustments: (i) one -time charges in an aggregate amount not to exceed $0.3 million and incurred prior to December 31, 2019 relating to the Company’s integration of business previously served by another major provider of electronic oncology pumps; (ii) one -time charges in an aggregate amount not to exceed $0.3 million and incurred prior to December 31, 2019 relating to the Company’s facility move; (iii) lease buyout expenses not to exceed: ( x ) $0.1 million incurred on or prior to December 31, 2018; ( y) $0.2 million incurred after December 31, 2018 but on or prior to March 31, 2019; and (z) $0.2 million incurred after September 30, 2019 but on or prior to December 31, 2020; and (iv) any other non-cash charges for such period (but excluding certain non-cash charges); | | | ● | revise the definition of Fixed Charge Coverage Ratio to mean, for any period, the ratio of (a) EBITDA minus Maintenance Capital Expenditures (defined to mean, for any period, 50.0% of depreciation expense) to (b) Fixed Charges, all calculated for the Company and its subsidiaries on a consolidated basis in accordance with GAAP; | | | ● | revise the definitions of Revolving Credit Maturity Date and Term Maturity Date to mean the date five years after the Sixth Amendment Effective Date and add a definition for the 2019 Equipment Line Maturity Date to provide for the same maturity date; | | | ● | reflect the refinancing of the Term A Loans, Term B Loans and Term C Loan as a single Term Loan on the Sixth Amendment Effective Date and, commencing on the last Business Day of December 2019, the consecutive quarterly principal installment payments will change to approximately $1.2 million; and | | | ● | revise Section 5.01 (e) of the Credit Agreement, which governs the Company’s obligation to deliver financial statements to the lender, to require the Company to provide financial statements ( x ) as soon as possible but in any event within 30 days of the end of each fiscal quarter, or within 30 days of the end of each calendar month if any revolving loans were outstanding in month, (y) in connection with, and prior to, requesting any letter of credit and (z) at such other times as may be requested by the lender. | These debt amendments were accounted for as debt modifications. As of December 31, 2019, the Company was in compliance with all debt-related covenants under the Credit Agreement. The net availability under the Revolver is based upon the Company’s eligible accounts receivable and eligible inventory and was comprised as follows (in thousands): | | | | | | | | | | | | | | | | | Revolver: | | | | | | | | | | Gross Availability | | $ | 11,750 | | | $ | 9,973 | | | Outstanding Draws | | | - | | | | - | | | Letters of Credit | | | (1,750 | ) | | | (750 | ) | | Landlord Reserves | | | (150 | ) | | | (70 | ) | | Availability on Revolver | | $ | 9,850 | | | $ | 9,153 | |
The Company had future maturities of loans as of December 31, 2019 as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | Term Loan A | | $ | 5,768 | | | $ | 4,615 | | | $ | 4,615 | | | $ | 4,615 | | | $ | 8,074 | | | $ | 27,687 | | | Equipment Line | | | 1,600 | | | | 1,600 | | | | 1,600 | | | | 1,600 | | | | 1,200 | | | | 7,600 | | | 2019 Equipment Line | | | 79 | | | | 315 | | | | 315 | | | | 315 | | | | 550 | | | | 1,574 | | | Unamortized value of debt issuance costs | | | (17 | ) | | | (17 | ) | | | (17 | ) | | | (17 | ) | | | (15 | ) | | | (83 | ) | | Other financing | | | 652 | | | | 725 | | | | 222 | | | | - | | | | - | | | | 1,599 | | | Total | | $ | 8,082 | | | $ | 7,238 | | | $ | 6,735 | | | $ | 6,513 | | | $ | 9,809 | | | $ | 38,377 | | The following is a breakdown of the Company’s current and long-term debt as of December 31, 2019 and December 31, 2018 ( in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loan A | | $ | 5,768 | | | $ | 21,919 | | | $ | 27,687 | | | $ | 3,584 | | | $ | 19,727 | | | $ | 23,311 | | | Term Loan C (1) | | | - | | | | - | | | | - | | | | 1,229 | | | | 6,757 | | | | 7,986 | | | Equipment Line | | | 1,600 | | | | 6,000 | | | | 7,600 | | | | 128 | | | | 2,434 | | | | 2,562 | | | 2019 Equipment Line | | | 79 | | | | 1,495 | | | | 1,574 | | | | - | | | | - | | | | - | | | Unamortized value of debt issuance costs | | | (17 | ) | | | (66 | ) | | | (83 | ) | | | (38 | ) | | | (76 | ) | | | (114 | ) | | Other financing | | | 652 | | | | 947 | | | | 1,599 | | | | - | | | | - | | | | - | | | Total | | $ | 8,082 | | | $ | 30,295 | | | $ | 38,377 | | | $ | 4,903 | | | $ | 28,842 | | | $ | 33,745 | | ( 1 ) Pursuant to the Sixth Amendment to the Credit Agreement, entered into on November 7, 2019, Term Loan C was consolidated into Term Loan A. | As of December 31, 2019, interest on the credit facility is payable at the Company’s option as a (i) Eurodollar Loan, which bears interest at a per annum rate equal to the applicable 30 -day London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging from 2.00% to 3.00% or (ii) CB Floating Rate (“CBFR”) Loan, which bears interest at a per annum rate equal to the greater of (a) the lender’s prime rate or (b) LIBOR plus 2.50%, in each case, plus a margin ranging from - 1.00% to 0.25%. The actual Eurodollar Loan rate at December 31, 2019 was 4.25% (LIBOR of 1.75% plus 2.50% ). The actual CBFR Loan rate at December 31, 2019 was 4.25% (lender’s prime rate of 5.50% minus 0.50% ).
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