51³Ô¹ÏÍø

Note 11. Subsequent 51³Ô¹ÏÍø

Loan Agreement

On November 5, 2018, the Company entered into a loan agreement (the “Loan Agreement”) with the Leon and Toby Cooperman Family Foundation (the “Lender”). The Loan Agreement provides for a $5 million revolving credit facility (the “Facility”) evidenced by a revolving promissory note (the “Note”). Borrowings under the Loan Agreement will bear interest at 12% per annum. The Facility matures on November 4, 2021.

Pursuant to the terms of the Loan Agreement, the Company agreed to pay to the Lender a $100,000 one-time upfront facility fee. The Company also agreed to pay to the Lender a commitment fee, payable quarterly at the rate of 2% per annum on the undrawn portion of the Facility. The Company has not borrowed any sum under the Facility.

The Loan Agreement contains customary representations and warranties, events of default and covenants. Pursuant to the Loan Agreement and the Note, all future or contemporaneous indebtedness incurred by the Company, other than indebtedness expressly permitted by the Loan Agreement and the Note, will be subordinated to the Facility.

Pursuant to the Loan Agreement, on November 5, 2018 the Company issued to the Lender warrants to purchase 92,049 shares of the CompanyÂ’s common stock exercisable for five years from the date of issuance at the exercise price of $5.85 per share.

Payment of Convertible Note

On December 3, 2018, the Company made a scheduled payment of $1,000,000 of principal and $160,000 of accrued interest under the convertible note in the initial principal amount of $2,000,000 issued on December 1, 2017 (See Notes 5 and 8). The remaining $1,000,000 of principal amount outstanding under the Note will mature on December 1, 2019.