Subsequent Events |
3 Months Ended |
|---|---|
Mar. 31, 2018 | |
| Subsequent Events [Abstract] | |
| Subsequent Events |
Subsequent Events
On May 4, 2018 ("Closing Date") the Company, and its wholly owned subsidiaries, American DG Energy Inc. and TTcogen LLC (collectively, the "Borrowers"), entered into a Credit Agreement with Webster Business Credit Corporation that provides Borrowers a line of credit of up to $10 million on a revolving and secured basis, with availability based on certain accounts receivables, raw materials, and finished goods. Funds borrowed under the Agreement are payable on May 4, 2021.
Borrowings under the Credit Agreement bear interest at a rate equal to, at the Borrower's option, either (1) One Month LIBOR, plus 3.00%, or (2) Lender’s Base Rate, plus 1.5%. Lender’s Base Rate is the highest of (a) the Federal Funds rate plus 0.5%, (b) Lender’s Prime Rate as adjusted by Lender from time to time, and (c) One Month LIBOR, plus 2.75%.
Upon Closing, the Company borrowed funds under the Credit Agreement to repay the balance due to Mr. John N. Hatsopoulos, a director of the Company, under a $3 million Revolving Line of Credit in favor of ADGE dated December 22, 2016 (the “Revolving Line”) that the Company assumed on May 18, 2017 when it acquired ADGE.
The Revolving Line was terminated on February 27, 2017, and the Company and Mr. Hatsopoulos agreed that the maturity date for the then outstanding indebtedness under the Revolving Line would be on or before May 25, 2018. ADGE had previously borrowed $850,000 under the Revolving Line, with interest at the rate of 6% per year. The payoff of the Revolving Line, including accrued interest through the Closing Date, was $919,590.
The Company has evaluated subsequent events through the date of this filing and determined that no additional subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.
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