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Item 1.
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Security and Issuer
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This Amendment No. 4 to Schedule 13D (this “Amendment No. 4”) supplements and amends the Schedule 13D originally filed with the
Securities and Exchange Commission (the “SEC”) on July 25, 2019, as amended by Amendment No. 1 thereto, filed with the SEC on January 17, 2020, as amended by Amendment No. 2 thereto, filed with the SEC on
April 23, 2020, and as amened by Amendment No. 3 thereto, filed with the SEC on January 19, 2021 (as so amended, the “Prior Statement” and, as supplemented and amended by this Amendment No. 4, the
“Statement”). Capitalized terms used but not otherwise defined herein have the meanings set forth in the Prior Statement. Except as specifically supplemented and amended by this Amendment No. 4, items in the Prior Statement
remain unchanged.
This Amendment No. 4 is being filed to report that, on May 10, 2021, the Issuer and Ampersand 2018 Limited Partnership, a
Delaware limited partnership (“Ampersand”) entered into an amendment to the Secured Promissory Note, dated January 7, 2021 (the “Note”) and an amendment to the related Security Agreement, dated January 7,
2021 (the “Security Agreement”) as further discussed below under Item 6.
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Item 6.
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Contracts, Arrangements, Understandings or Relationship with Respect to Securities of the Issuer
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Item 6 of the Prior Statement is hereby amended and supplemented to include the following:
The Support Agreement (as defined in the Prior Statement) was terminated on September 30, 2020 pursuant to a termination agreement, dated July 9,
2020, between the Issuer and Ampersand.
On January 7, 2021, the Issuer entered into the Note with Ampersand pursuant to which Ampersand made a loan
to the Issuer in an aggregate principal amount equal to $3,000,000. The rate of interest on the Note is equal to eight percent (8.0%) per annum and its maturity date is the earlier of (a) June 30, 2021 and (b) the date on which all
amounts become due upon the occurrence of any event of default as defined in the Note. No interest payments are due on the Note until its maturity date. On May 10, 2021, the Issuer entered into an amendment to the Note with Ampersand to
increase the aggregate principal amount of the Note to $4,500,000.
Pursuant to the Security Agreement, the Note is secured by a first priority lien and
security interest on substantially all of the assets of the Issuer. Additionally, if a change of control of the Issuer occurs (as defined in the Note) the Issuer is required to make a prepayment of the Note in an amount equal to the unpaid principal
amount, all accrued and unpaid interest, and all other amounts payable under the Note out of the net cash proceeds received by the Issuer from the consummation of the transactions related to such change of control. The Issuer may prepay the Note in
whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment. No prepaid amount may be
re-borrowed.
The Note contains certain negative covenants which prevent the Issuer from issuing any debt
securities pursuant to which the Issuer issues shares, warrants or any other convertible security in the same transaction or a series of related transactions, except that Issuer may incur or enter into any capitalized and operating leases in the
ordinary course of business consistent with past practice, or borrowed money or funded debt in an amount not to exceed $4.5 million (the “Debt Threshold”) that is subordinated to the Note on terms acceptable to Ampersand; provided,
that if the aggregate consolidated revenue recognized by the Issuer as reported on Form 10-K as filed with the SEC for any fiscal year ending after January 10, 2020 exceeds $45 million dollars, the
Debt Threshold for the following fiscal year shall increase to an amount equal to: (x) ten percent (10%); multiplied by (y) the consolidated revenue as reported by the Issuer on Form 10-K as filed
with the SEC for the previous fiscal year.
The foregoing descriptions of the Note, the Security Agreement, the amendment to the Note and the amendment to
the Security Agreement are qualified in their entirety by reference to the full text of the Note, the Security Agreement, the amendment to the Note and the amendment to the Security Agreement, which are filed as Exhibits 2, 3, 4 and 5 to this
Amendment No. 4, respectively, and are incorporated herein by reference in their entirety.