Factoring Agreement |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Factoring Agreement [Abstract] | |
| Factoring Agreement |
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 is 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.
The Company's factor expense is recorded as interest expense in the condensed consolidated statement of net income (loss). Factor expense totaled $146 and $332 for the three and six months ended June 30, 2019, respectively, and $179 and $380 for the three and six months ended June 30, 2018, respectively.
The amount of factored receivables outstanding was $1,775 and $2,434 as of June 30, 2019 and December 31, 2018, respectively. There was $1,225 and $566 available for future advances as of June 30, 2019 and December 31, 2018, respectively.
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