Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

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Long-Term Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt consisted of the following:
June 30, December 31,
2022 2021
(In thousands)
Revolving credit line $ 3,000  $ 3,000 
Equipment loan 4,022  5,089 
Deferred financing costs (14) (19)
Total $ 7,008  $ 8,070 
Debt – current portion 5,119  5,114 
Long-term debt – less current portion $ 1,889  $ 2,956 
The Company’s banking arrangements include three facilities and a revolving credit line with its primary bank. For a full description of these banking arrangements, see Note 15, Long-Term Debt, in the audited consolidated financial statements included in the 2021 Form 10-K, and Note 16, Subsequent Events, to these condensed consolidated financial statements. These loans contain customary representations and warranties, reporting covenants, events of default and termination provisions. The affirmative covenants include, among other things, that the Company furnish monthly financial statements, a yearly budget, timely files taxes, maintains good standing and government compliance, maintains liability and other insurance and furnishes audited financial statements no later than the date of delivery to the Board of Directors.
The Company amortizes deferred financing costs over the life of the borrowing. As of June 30, 2022 and December 31, 2021, the remaining unamortized balance of deferred financing costs was less than $0.1 million for both periods and was included in Debt — current portion on the balance sheets.
Revolving Credit Line — In May 2021, the Company executed the third amended and restated loan and security agreement and a mezzanine loan and security agreement, which included a $10.0 million revolving credit line and an $8.5 million secured equipment loan facility (see below).
In August 2021, the Company drew $3.0 million on the $10.0 million revolving credit facility, with a variable interest rate of the greater of 5.75% or Prime plus 2.50% and a term of 10 months. The Company has $7.0 million of the revolving credit line undrawn as of June 30, 2022. The effective interest rate was 5.2% and 4.9% for the three and six months ended June 30, 2022, respectively. The loan fees were less than $0.1 million as of June 30, 2022.
Loan Modification Agreements - On May 13, 2022, the Company entered into a first loan modification agreement that made certain modifications to the third amended and restated loan and security agreement. In particular, the first loan modification agreement extended the maturity date of the revolving line of credit from May 14, 2022 to June 13, 2022, and included a limited waiver of a default related to the Company’s failure to maintain revenue of at least $25 million for the six month period ending March 31, 2022. The other material terms of the third amended and restated loan and security agreement remained unchanged.
On June 13, 2022, the Company entered into a second loan modification agreement that made certain modifications to the third amended and restated loan and security agreement, as amended. In particular, the second loan modification agreement extended the maturity date of the revolving line of credit from June 13, 2022 to July 14, 2022. The other material terms of the third amended and restated loan and security agreement remained unchanged.
Subsequent to June 30, 2022, the third amended and restated loan and agreement was further amended on July 11, 2022 pursuant to a third loan modification agreement and on July 25, 2022 pursuant to a joinder and fourth loan modification agreement. Following these further amendments, among other things, the maturity date of the Company’s revolving line of credit has been extended to December 31, 2024. See Note 16, Subsequent Events.
Equipment Loan — On December 17, 2020, the Company executed the second amended and restated loan and security agreement, which included an equipment loan facility for up to $8.5 million secured by the equipment leased to customers. The facility has a variable interest rate of the greater of Prime rate or 3.25%.
During the year ended December 31, 2021, the Company executed seven additional advances on the facility for $5.6 million secured by equipment leased to customers. For the six months ended June 30, 2022, $1.1 million in principal payments were paid. As of June 30, 2022, the outstanding balance was $4.0 million. As of June 30, 2022, the deferred loans fees associated with the debt issuance was less than $0.1 million. The effective interest rate was 3.9% and 3.2% for the three months ended June 30, 2022 and 2021, respectively, and 3.5% and 3.2% for the six months ended June 30, 2022 and 2021, respectively.
The future minimum aggregate payments for the above borrowings are as follows as of June 30, 2022:
(In thousands)
Less than 1 year $ 5,119 
1-3 years 1,889 
$ 7,008 
On July 25, 2022, the Company entered into a joinder and fourth loan modification agreement to the third amended and restated loan and security agreement, which, among other things, established a secured equipment loan facility of up to $15.0 million available through December 31, 2023. See Note 16, Subsequent Events.