In December 2010, ICC borrowed $4,600,000 loan from a financial institution. The loan bears interest based on the Wall Street Journal “prime rate” or 4.75% and 4.50% per annum as of March 31, 2018 and December 31, 2017, respectively. The loan is collateralized by one if its shareholders and the medical equipment ICC owns. The loan matures on December 31, 2018. As of March 31, 2018 and December 31, 2017, the balance outstanding was $394,783 and $510,391, respectively, and is classified as current liabilities. As of March 31, 2018 and December 31, 2017, ICC was in compliance with all affirmative and negative covenants contained in the loan agreement.

 

In April 2012, NMM entered into a promissory note agreement with a bank, which was amended on April 9, 2016 and April 7, 2017 (as amended, the “NMM Business Loan Agreement”). The NMM Business Loan Agreement was amended on April 7, 2017 to increase the loan availability from $10,000,000 to $20,000,000. The interest rate is based on the Wall Street Journal “prime rate” plus 0.125% or 4.875% and 4.675% as of March 31, 2018 and December 31, 2017, respectively. As of December 31, 2017, the Company was not in compliance with certain financial debt covenant requirements contained in the loan agreement for which NMM obtained a waiver through March 31, 2018. As of March 31, 2018, NMM was in compliance with such financial debt covenant requirements. The loan is personally guaranteed by 14 former shareholders of NMM, 13 of which are also members of former NMM’s board of directors, and a Trust held by NMM’s CEO, each of which guarantees is capped at $1,000,000. The loan is collateralized by substantially all assets of NMM. In October 2017, NMM borrowed $5,000,000 on this line of credit to provide to Accountable Health Care IPA (see Note 6). The line of credit was amended on April 18, 2018 to extend the maturity date from April 22, 2018 to June 22, 2018. The amount outstanding as of both March 31, 2018 and December 31, 2017 was $5,000,000. As of both March 31, 2018 and December 31, 2017, availability under this line of credit was $8,300,671.

 

In April 2012, APC entered into a promissory note agreement with a bank, which was amended on April 22, 2016 and April 7, 2017 (as amended, the “APC Business Loan Agreement”). The APC Business Loan Agreement modifies certain terms of the promissory note agreement in order to (i) increase the original loan availability amount of $2,000,000 to $10,000,000, (ii) extend the maturity date under the promissory note agreement to April 22, 2018, and (iii) add six additional guarantees. The interest rate is based on the Wall Street Journal “prime rate” plus 0.125% or 4.875% and 4.675% as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018 and December 31, 2017, the Company was not in compliance with certain financial debt covenant requirements contained in the loan agreement for which APC obtained a waiver from the bank through June 30, 2018. The loan is personally guaranteed by 14 shareholders of APC, 13 of which are also members of APC’s board of directors, and a Trust held by NMM’s CEO, each of which guarantees is capped at $1,000,000. The loan is also collateralized by substantially all assets of APC. No amounts were drawn on this line during the three months ended March 31, 2018 and no amounts were outstanding as of March 31, 2018 and December 31, 2017. As of both March 31, 2018 and December 31, 2017, availability under this line of credit was $9,694,984. The line of credit was amended on April 18, 2018 to extend the maturity date from April 22, 2018 to June 22, 2018.

 

 

On March 3, 2017, APAACO established an irrevocable standby letter of credit with a financial institution (through the NMM Business Loan Agreement) for $6,699,329 for the benefit of CMS. The letter of credit expires on December 31, 2018 and deemed automatically extended without amendment for additional one - year periods from the present or any future expiration date, unless notified by the institution to terminate prior to 90 days from any expiration date. APAACO may continue to draw from the letter of credit for one year following the bank’s notification of non-renewal.

APC established irrevocable standby letters of credit with a financial institution for a total of $305,016 for the benefit of certain health plans. The standby letters of credit are automatically extended without amendment for additional one-year periods from the present or any future expiration date, unless notified by the institution in advance of the expiration date that the letter will be terminated.