Factoring Agreement |
9 Months Ended |
|---|---|
Sep. 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 operations and comprehensive loss. Factor expense totaled $140 and $472 for the three and nine months ended September 30, 2019, respectively, and $147 and $528 for the three and nine months ended September 30, 2018, respectively.
The amount of factored receivables outstanding was $1,546 and $2,434 as of September 30, 2019 and December 31, 2018, respectively. There was $1,454 and $566 available for future advances as of September 30, 2019 and December 31, 2018, respectively.
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