|6 Months Ended
Jun. 30, 2022
|Subsequent Events [Abstract]
Note T – Subsequent Events
On July 1, 2022, the Company’s board of directors approved the grant of up to 959,618 stock options and 1,367,134 shares of restricted stock units to certain officers, managers and other eligible employees pursuant to the Plan. The contractual terms and vesting conditions for these awards are consistent with previous grants described in Note P. Also on July 1, 2022, the board of directors authorized the grant of restricted stock units to the recently appointed director pursuant to the Non-Employee Director Compensation Policy. The fair value of the restricted stock units will be determined based on the closing price per share of common stock as of the grant date, while the fair value of the stock options will be determined on the grant date under the Black-Scholes OPM.
On August 8, 2022, the Company entered into the Fourth Amendment to the Adams Street Capital Credit Agreement. The Fourth Amendment, among other things, suspends the requirement to comply with the consolidated total net leverage ratio, commencing with the quarter ended June 30, 2022 through June 30, 2023, and resuming with the first test period ending September 30, 2023. The Company is required to maintain a minimum liquidity covenant of $5.0 million measured on the last day of each fiscal month commencing with the month ending September 30, 2022 through September 30, 2023. In addition, the Fourth Amendment increased the per annum interest rate with respect to the initial term loans, delayed draw term loans, incremental term loans and revolving loans by 2.00%, which interest shall accrue and be paid in kind, until the Company is in compliance with the consolidated total net leverage ratio.
In connection with the execution of the Fourth Amendment, AE Industrial Partners Fund II, LP and certain of its affiliates (the “AEI Guarantors”), provided a limited guarantee for the payment of outstanding term loans of up to $7.5 million. In the event that the AEI Guarantors are required to make payments to the lenders under the Adams Street Capital Credit Agreement the terms pursuant to the limited guarantee follow the same terms and conditions as those of the guarantee to the Third Amendment described in Note J.
The Company has evaluated subsequent events after the consolidated balance sheet as of June 30, 2022 through the condensed consolidated financial statements issuance date and there were no additional subsequent events that required disclosure.