2015 Q3 Form 10-Q Financial Statement

#000114420415064117 Filed on November 10, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q4 2014 Q3
Revenue $21.68M $8.060M $15.30M
YoY Change 41.75% 67.22% 0.82%
Cost Of Revenue $17.30M $7.110M $13.80M
YoY Change 25.34% 52.9% 5.48%
Gross Profit $4.384M $950.0K $1.495M
YoY Change 193.24% 458.82% -111.85%
Gross Profit Margin 20.22% 11.79% 9.77%
Selling, General & Admin $2.482M $2.930M $1.622M
YoY Change 53.02% 22.59% -11.51%
% of Gross Profit 56.61% 308.42% 108.49%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $540.0K $350.0K $220.0K
YoY Change 145.45% 66.67% 4.76%
% of Gross Profit 12.32% 36.84% 14.72%
Operating Expenses $2.482M $2.930M $1.622M
YoY Change 53.02% 22.59% -11.51%
Operating Profit $1.902M -$1.980M -$127.0K
YoY Change -1597.64% -10.81% -99.12%
Interest Expense $157.0K -$150.0K $99.00K
YoY Change 58.59% -40.0% -59.92%
% of Operating Profit 8.25%
Other Income/Expense, Net -$157.0K -$99.00K
YoY Change 58.59% -59.92%
Pretax Income $1.745M -$2.130M -$226.0K
YoY Change -872.12% -13.41% -98.46%
Income Tax $663.0K -$1.050M -$118.0K
% Of Pretax Income 37.99%
Net Earnings $1.082M -$1.080M -$108.0K
YoY Change -1101.85% -29.41% -98.82%
Net Earnings / Revenue 4.99% -13.4% -0.71%
Basic Earnings Per Share $0.03 $0.00
Diluted Earnings Per Share $0.03 -$33.80K $0.00
COMMON SHARES
Basic Shares Outstanding 32.64M shares 32.03M shares 32.03M shares
Diluted Shares Outstanding 33.86M shares 32.03M shares

Balance Sheet

Concept 2015 Q3 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.000M $900.0K $1.200M
YoY Change -16.67% 28.57% -69.23%
Cash & Equivalents $1.040M $935.0K $1.173M
Short-Term Investments
Other Short-Term Assets $5.900M $1.400M $5.000M
YoY Change 18.0% 75.0% -5.66%
Inventory $48.96M $37.02M $27.65M
Prepaid Expenses
Receivables $9.614M $3.968M $9.036M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $65.50M $43.33M $42.91M
YoY Change 52.65% 3.49% -11.71%
LONG-TERM ASSETS
Property, Plant & Equipment $7.518M $7.887M $4.462M
YoY Change 68.49% 73.88% -5.06%
Goodwill $2.603M $265.0K
YoY Change
Intangibles $3.379M $2.322M $48.00K
YoY Change 6939.58% 3973.68%
Long-Term Investments $400.0K
YoY Change -60.0%
Other Assets $83.00K $102.0K $150.0K
YoY Change -44.67% -3.77% -97.12%
Total Long-Term Assets $16.19M $16.61M $10.21M
YoY Change 58.62% 58.13% -7.2%
TOTAL ASSETS
Total Short-Term Assets $65.50M $43.33M $42.91M
Total Long-Term Assets $16.19M $16.61M $10.21M
Total Assets $81.69M $59.94M $53.12M
YoY Change 53.8% 14.45% -10.88%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.30M $4.500M $7.800M
YoY Change 32.05% 12.5% 25.81%
Accrued Expenses $200.0K $400.0K $400.0K
YoY Change -50.0% 33.33% 0.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $15.00M $264.0K $300.0K
YoY Change 4900.0% -8.01% -98.34%
Total Short-Term Liabilities $25.48M $11.21M $8.543M
YoY Change 198.27% -42.82% -65.45%
LONG-TERM LIABILITIES
Long-Term Debt $4.377M $4.389M $458.0K
YoY Change 855.68% -6.04% -90.35%
Other Long-Term Liabilities $1.502M $333.0K
YoY Change
Total Long-Term Liabilities $5.879M $4.722M $458.0K
YoY Change 1183.62% 1.09% -90.35%
TOTAL LIABILITIES
Total Short-Term Liabilities $25.48M $11.21M $8.543M
Total Long-Term Liabilities $5.879M $4.722M $458.0K
Total Liabilities $31.36M $15.94M $9.001M
YoY Change 248.41% -34.37% -70.01%
SHAREHOLDERS EQUITY
Retained Earnings -$12.04M -$17.83M -$16.75M
YoY Change -28.1% 4.21%
Common Stock $327.0K $323.0K $320.0K
YoY Change 2.19% 28.69% 27.49%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $50.33M $44.00M $44.11M
YoY Change
Total Liabilities & Shareholders Equity $81.69M $59.94M $53.12M
YoY Change 53.8% 14.45% -10.88%

Cashflow Statement

Concept 2015 Q3 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income $1.082M -$1.080M -$108.0K
YoY Change -1101.85% -29.41% -98.82%
Depreciation, Depletion And Amortization $540.0K $350.0K $220.0K
YoY Change 145.45% 66.67% 4.76%
Cash From Operating Activities -$5.000M -$2.950M -$390.0K
YoY Change 1182.05% 321.43% -104.81%
INVESTING ACTIVITIES
Capital Expenditures -$100.0K -$190.0K -$260.0K
YoY Change -61.54% 420.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$7.370M $0.00
YoY Change -3609.52% -100.0%
Cash From Investing Activities -$110.0K -$7.550M -$260.0K
YoY Change -57.69% -3695.24% 271.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.660M 10.27M -80.00K
YoY Change -5925.0% -468.1% -98.76%
NET CHANGE
Cash From Operating Activities -5.000M -2.950M -390.0K
Cash From Investing Activities -110.0K -7.550M -260.0K
Cash From Financing Activities 4.660M 10.27M -80.00K
Net Change In Cash -450.0K -230.0K -730.0K
YoY Change -38.36% -92.99% -146.5%
FREE CASH FLOW
Cash From Operating Activities -$5.000M -$2.950M -$390.0K
Capital Expenditures -$100.0K -$190.0K -$260.0K
Free Cash Flow -$4.900M -$2.760M -$130.0K
YoY Change 3669.23% 294.29% -101.59%

Facts In Submission

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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0169 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.59 pure
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
793000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
69032000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
44011000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
3390000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
3744000 USD
CY2015Q1 hdsn Number Of Employees
NumberOfEmployees
3 pure
CY2015Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Property Plant And Equipment
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment
1606000 USD
CY2015Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangibles
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles
1500000 USD
CY2015Q1 us-gaap Business Acquisition Purchase Price Allocation Goodwill Expected Tax Deductible Amount
BusinessAcquisitionPurchasePriceAllocationGoodwillExpectedTaxDeductibleAmount
2338000 USD
CY2015Q1 us-gaap Finite Lived Intangible Asset Useful Life
FiniteLivedIntangibleAssetUsefulLife
P6Y
CY2015Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
3000000 USD
CY2013Q1 us-gaap Line Of Credit Facility Maximum Borrowing Capacity
LineOfCreditFacilityMaximumBorrowingCapacity
40000000 USD
CY2013Q1 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
44000 USD
CY2015Q3 us-gaap Line Of Credit
LineOfCredit
18600000 USD
CY2015Q3 us-gaap Line Of Credit Facility Current Borrowing Capacity
LineOfCreditFacilityCurrentBorrowingCapacity
14200000 USD
CY2015Q3 us-gaap Line Of Credit Facility Interest Rate At Period End
LineOfCreditFacilityInterestRateAtPeriodEnd
0.0375 pure
us-gaap Debt Instrument Maturity Date
DebtInstrumentMaturityDate
2018-06-30
dei Document Type
DocumentType
10-Q
dei Amendment Flag
AmendmentFlag
false
dei Document Period End Date
DocumentPeriodEndDate
2015-09-30
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Entity Registrant Name
EntityRegistrantName
HUDSON TECHNOLOGIES INC /NY
dei Entity Central Index Key
EntityCentralIndexKey
0000925528
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
dei Trading Symbol
TradingSymbol
HDSN
CY2015Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
32686196 shares
us-gaap Use Of Estimates
UseOfEstimates
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Actual results could differ from these estimates.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company utilizes both internal and external sources to evaluate potential current and future liabilities for various commitments and contingencies. In the event that the assumptions or conditions change in the future, the estimates could differ from the original estimates.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Several of the Company's accounting policies involve significant judgments, uncertainties and estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. To the extent that actual results differ from management's judgments and estimates, there could be a material adverse effect on the Company. On a continuous basis, the Company evaluates its estimates, including, but not limited to, those estimates related to its allowance for doubtful accounts, inventory reserves, and valuation allowance for the deferred tax assets relating to its NOLs and commitments and contingencies. With respect to accounts receivable, the Company estimates the necessary allowance for doubtful accounts based on both historical and anticipated trends of payment history and the ability of the customer to fulfill its obligations. For inventory, the Company evaluates both current and anticipated sales prices of its products to determine if a write down of inventory to net realizable value is necessary. In determining the Company&#8217;s valuation allowance for its deferred tax assets, the Company assesses its ability to generate taxable income in the future.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company participates in an industry that is highly regulated, and changes in the regulations affecting its business could affect its operating results. 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As a result of litigation, the federal regulations implementing the January 2010 phase down schedule were vacated, and in April 2013, the Environmental Protection Agency (&#8220;EPA&#8221;) published a final rule providing for the production or importation of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 63</font> million and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">51</font> million pounds of HCFC-22 in 2013 and 2014, respectively. On October 16, 2014, the Administrator of the EPA signed a final rule providing further reductions in the production and consumption allowances for virgin HCFC refrigerants for the years 2015 through 2019 (the &#8220;Final Rule&#8221;). 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The Company assesses the merit and potential liability associated with each of these proceedings. In addition, the Company estimates potential liability, if any, related to these matters. To the extent that these estimates are not accurate, or circumstances change in the future, the Company could realize liabilities, which could have a material adverse effect on its operating results and its financial position.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><strong><font style="FONT-SIZE: 10pt">Credit Risk</font></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of temporary cash investments and trade accounts receivable. The Company maintains its temporary cash investments in highly-rated financial institutions and, at times, the balances exceed FDIC insurance coverage. The Company's trade accounts receivable are primarily due from companies throughout the United States. The Company reviews each customer's credit history before extending credit.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company establishes an allowance for doubtful accounts based on factors associated with the credit risk of specific accounts, historical trends, and other information. The carrying value of the Company&#8217;s accounts receivable is reduced by the established allowance for doubtful accounts. The allowance for doubtful accounts includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve for the remaining accounts receivable balances. The Company adjusts its reserves based on factors that affect the collectability of the accounts receivable balances.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <font style="FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">For the nine month period ended September 30, 2015, <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">two customers each accounted for 10% or more of the Company&#8217;s revenues</font> and, in the aggregate these two customers accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 34</font>% of the Company&#8217;s revenues. At September 30, 2015, there were $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,100,000</font> in outstanding receivables from these customers.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">For the nine month period ended September 30, 2014, two customers each accounted for 10% or more of the Company&#8217;s revenues and, in the aggregate these two customers accounted for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 26</font>% of the Company&#8217;s revenues. At September 30, 2014, there were $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2,004,000</font> in outstanding receivables from these customers.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The loss of a principal customer or a decline in the economic prospects of and/or a reduction in purchases of the Company's products or services by any such customer could have a material adverse effect on the Company's operating results and financial position.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
us-gaap Concentration Risk Customer
ConcentrationRiskCustomer
two customers each accounted for 10% or more of the Companys revenues
hdsn Production And Importation Permission Description
ProductionAndImportationPermissionDescription
22 million pounds in 2015 and reduces by approximately 4.5 million pounds each year and ends at zero in 2020.
CY2015Q3 us-gaap Common Stock Value
CommonStockValue
327000 USD
CY2014Q4 us-gaap Common Stock Value
CommonStockValue
323000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
7000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
10000 USD
CY2015Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2014Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2015Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2014Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2015Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
32676196 shares
CY2015Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
32676196 shares
CY2014Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
32312276 shares
CY2014Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
32312276 shares
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
3026000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P3Y
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P2Y
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
9827 shares
CY2015Q1 hdsn Business Acquisition Purchase Price Allocation Description
BusinessAcquisitionPurchasePriceAllocationDescription
The purchase price for this acquisition was $2,424,000 cash paid at closing and the assumption of a liability of $20,000, plus a maximum of an additional $3,000,000 earn out, of which approximately $331,000 has been paid out as of September 30, 2015. The remaining balance of $2,669,000 is accrued on the consolidated balance sheet as of September 30, 2015
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
9827 shares
CY2014Q4 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
us-gaap Concentration Risk Customer
ConcentrationRiskCustomer
two customers each accounted for 10% or more of the Company&#8217;s revenues
us-gaap Operating Loss Carryforwards Limitations On Use
OperatingLossCarryforwardsLimitationsOnUse
Approximately $6,700,000 of the Company&#8217;s $7,600,000 of NOLs are subject to annual limitations of $1,300,000
CY2013 hdsn Production Or Importation Of Hcfc
ProductionOrImportationOfHcfc
63000000 lb
CY2014 hdsn Production Or Importation Of Hcfc
ProductionOrImportationOfHcfc
51000000 lb
us-gaap Line Of Credit Facility Interest Rate Description
LineOfCreditFacilityInterestRateDescription
Interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to Domestic Rate Loans (as defined in the PNC Facility), the sum of the Alternate Base Rate (as defined in the PNC Facility) plus one half of one percent (.50%) and (B) with respect to Eurodollar Rate Loans, the sum of the Eurodollar Rate plus two and one quarter of one percent( 2.25%).

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