On the Company and its subsidiary, Interpace LLC, entered into an agreement to acquire RedPath (the “Transaction”). In connection with the Transaction, the Company entered into a the RedPath Note. This RedPath Note was subsequently exchanged on See note Subsequent Events. Accordingly, the RedPath Note has been classified as long-term debt on the balance sheet with no current portion due.

 

Originally, the RedPath Note was million, interest-free and payable in equal consecutive quarterly installments beginning   On the Company and the RedPath Equityholder Representative amended the RedPath Note to extend the due date of the installment to Effective the Company and the RedPath Equityholder Representative amended the RedPath Note to further extend the due date of the installment to On the Company and the RedPath Equityholder Representative amended the RedPath Note to extend the due date of the installment to to add as an event of default the failure of the Company to maintain a minimum net cash balance from operations of no less than excluding proceeds from borrowed money, at the end of every week and to add a reporting requirement for the Company to provide to the RedPath Equityholder Representative, on a weekly basis, a -week cash flow forecast commencing On the Company made the installment payment under the amended agreement of approximately million. Subsequent payments on the RedPath Note were to be made on the day of each fiscal quarter, beginning on    See Note Subsequent Events for updates to the RedPath Note.

In the quarter of the final working capital adjustment was made, reducing the balance of the RedPath Note to approximately million. In pursuant to the sale of substantially all of the CSO business, the RedPath Note was amended so that the CSO sales proceeds would not have to be applied against the RedPath Note payable balance.

 

The obligations of the Company under the RedPath Note were guaranteed by the Company and its subsidiaries pursuant to a Guarantee and Collateral Agreement (the “Subordinated Guarantee”) in favor of the RedPath Equityholder Representative. Pursuant to the Subordinated Guarantee, the Company and its subsidiaries also granted a security interest in substantially all of their assets, including intellectual property, to secure their obligations to the RedPath Equityholder Representative. Based on the Company's incremental borrowing rate under its Credit Agreement, the fair value of the RedPath Note at the date of issuance was million. During the years ended and the Company accreted approximately million

and million into interest expense, respectively, for each period. As of the balance of the Note was approximately million and the unamortized discount was million.

 

In addition, the Company entered into the Credit Agreement with SWK Funding LLC (the “Agent”) and the lenders party thereto in connection with the Transaction in the aggregate principal amount of million (the “SWK Loan”). The maturity date of the SWK Loan was   The Company received net proceeds of approximately million following payment of certain fees and expenses in connection with the Credit Agreement.

 

Upon the sale of substantially all of the CSO business on the Company used a portion of the net proceeds from the transaction to pay the balance of the outstanding SWK Loan in the aggregate principal amount of million, and an exit fee and expenses of approximately million. In connection with the termination of the Credit Agreement, the Guarantee and Collateral Agreement, dated by the Company and certain of its subsidiaries in favor of the Agent was also terminated on