Our short-term and long-term liquidity requirements primarily arise from: (i)
interest and principal payments related to our debt obligations, (ii) working
capital requirements, and (iii) capital expenditures, including periodic
While fiscal 2013 had its challenges, we still expect to maintain long-term growth in our hosted revenue offerings; particularly with our new product,
LyrisONEand our existing products, Lyris HQ and List Manager. We expect to increase efficiency and aggressive management within our operating expenses to generate available cash to satisfy our capital needs and debt obligations. To the extent that existing cash and cash equivalents, and cash from operations, are insufficient to fund our future activities, we may need to raise additional funds through public or private equity or debt financing. Additionally, we may enter into agreements or letters of intent with respect to potential investments in, or acquisitions of, complementary businesses, applications or technologies in the future, which could also require us to seek additional equity or debt financing. Revolving Lines of Credit
April 18, 2012, we entered into a Ninth Amendment ("Ninth Amendment") to the Amended and Restated Loan and Security Agreement ("Comerica Agreement") with Comerica Bank. The Ninth Amendment revised the terms of the Comerica Agreement and increased our revolving line of credit ("Comerica Revolving Line") from $2.5 millionto $3.5 million. The Ninth Amendment also extended the maturity of the Comerica Revolving Line and our second revolving line of credit of $2.5 million("Non-Formula Line," and together with the Comerica Revolving Line, the "Comerica Revolving Lines"). Repayment of the Non-Formula Line was secured by a security interest in substantially all of our assets. In addition, Mr. William T. Comfort, III, former Chairman of the Board, guaranteed our repayment of indebtedness under the Non-Formula Line by a limited guaranty ("Guaranty"). On October 17, 2012, we fully repaid and cancelled the Non-Formula Line of $2.5 millionthat William T. Comforthad guaranteed with our proceeds from sale of 2,000,000 shares of our Series A Preferred Stock to Lyr, Ltd., a Bermudacorporation of which Mr. Comfortis Chairman. As a result of the repayment and cancellation, the Guaranty was terminated. As of October 17, 2012, we only had the Comerica Revolving Line outstanding with Comerica Bank. See Note 8 ''Revolving Lines of Credit'' of the Notes to Consolidated Financial Statements. The Comerica Revolving Lines matured on April 30, 2013.