Quarterly report pursuant to Section 13 or 15(d)

11. Borrowings

11. Borrowings
3 Months Ended
Apr. 01, 2017
Debt Disclosure [Abstract]  

Long-term debt, capital lease and other financing obligations as of April 2, 2017, and December 31, 2016, consist of the following:


    April 1,
    December 31,
PNC term loan   $     $ 1,020  
Susquehanna term loans     3,242       3,242  
8.00% notes     582       582  
2.75% note, due in month installments of $3, including interest, due October 2024     278       287  
Capital leases and other financing obligations     470       567  
Debt issuance costs, net     (678 )     (779 )
Total debt obligations     3,894       4,919  
Less current maturities     (1,241 )     (2,093 )
Long-term debt obligations, net of current maturities   $ 2,653     $ 2,826  


On January 24, 2011, we entered into a $2,550 Term Loan (“Term Loan”) with PNC Bank to refinance the mortgage on our California facility.  The Term Loan is payable as follows, subject to acceleration upon the occurrence of an event of default or termination of the Revolving Credit Agreement: 119 consecutive monthly principal payments of $21 plus interest commencing on February 1, 2011, and continuing on the first day of each month thereafter followed by a 120th payment of all unpaid principal, interest and fees on February 1, 2021. The Revolving Credit Agreement requires a balloon payment of $1,020 in principal plus interest and additional fees will be due on January 31, 2017. The Term Loan is collateralized with our California facility located in Compton, California. The Term Loan interest rate is PNC Base Rate plus 2.25% to 3.75%, or 1-, 2- or 3-month PNC LIBOR Rate plus 3.25% to 4.75%, with the rate being dependent on our level of fixed charge coverage. The Term Loan was paid off in full on January 25, 2017.


On March 10, 2011, AAP entered into three separate commercial term loans (“Term Loans”) with Susquehanna Bank, pursuant to the guidelines of the U.S. Small Business Administration 7(a) Loan Program.  The total amount of the Term Loans is $4,750, split into three separate loans for $2,100; $1,400; and $1,250. The Term Loans mature in ten years and bear an interest rate of Prime plus 2.75%.  As of July 2, 2016, and January 2, 2016, the interest rate was 6.00%.  Borrowings under the Term Loans are secured by substantially all of the assets of AAP along with liens on the business assets and certain personal assets of the owners of 4301 Operations, LLC. We are a guarantor of the Term Loans along with 4301 Operations, LLC and its owners. In connection with these Term Loans, Susquehanna Bank also has a security interest in the recycling equipment assets of the Company.


On November 8, 2016, the Company entered into a securities purchase agreement with Energy Efficiency Investments, LLC, pursuant to which the company agreed to issue up to $7,732 principal amount of 3% Original Issue Discount Senior Convertible Promissory Notes of the Company and related common stock purchase warrants. The notes will be issued from time to time, up to such aggregate principal amount, at the request of the Company, subject to certain conditions, or at the option of the Investor. Interest accrues at the rate of eight percent per annum on the principal amount of the notes outstanding from time to time, and is payable at maturity or, if earlier, upon conversion of the notes. The principal amount of the notes outstanding at April 1, 2017 and December 31, 2016, was $100.


Capital leases and other financing obligations:  We acquire certain equipment under capital leases and other financing obligations.  The cost of the equipment was $2,601 and $2,601 as of April 1, 2017, and December 31, 2016, respectively.  Accumulated amortization as of April 1, 2017, and December 31, 2016, was approximately $2,131 and 1,771, respectively.  Depreciation and amortization expense is included in cost of revenues and selling, general and administrative expenses.