4. Factoring Agreement

On June 15, 2016 the Company entered into a factoring agreement with CSNK Working Capital Finance Corp. (d/b/a Bay View Funding) ("Bay View") whereby it sells select accounts receivable with recourse.

Under the terms of the agreement, Bay View may make advances to the Company of amounts representing up to 80% of the net amount of eligible accounts receivable. The factor facility was collateralized by a general security agreement over all the Company's personal property and interests. Fees paid to Bay View for factored receivables are 1.80% for the first 30 days and 0.65% for every ten days thereafter, to a maximum of 90 days total outstanding. The Company bears the risk of credit loss on the receivables. These receivables are accounted for as a secured borrowing arrangement and not as a sale of financial assets.

Factor expense of $186 and $201 for the three months ended March 31, 2019 and 2018 respectively, is recorded as interest expense in other expense in the condensed consolidated statements of operations and comprehensive loss. The amount of factored receivables outstanding was $1,631 and $2,434 as of March 31, 2019 and December 31, 2018, respectively. There was $1,369 and $566 available for future advances as of March 31, 2019 and December 31, 2018, respectively.