DENVER, June 19, 2015 /CNW/ -- ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced that its wholly owned subsidiary Identity Rehab Corporation ("ID Rehab") has paid in full and, thereby, terminated its credit facility (the "Credit Facility") with Costella Kirsch V, L.P. (the "Lender") prior to its scheduled maturity on June 30, 2016 (the "Maturity Date").
On June 19, 2015, ID Rehab repaid all the outstanding principal and interest on the Credit Facility totaling $238,223, as well as a prepayment fee and a financial covenant fee in the amounts of $11,831 and $90,000, respectively. These payments were made from available cash balances. As a result of the early repayment of the Credit Facility, the Company will record a $63,666 write-off of capitalized financing costs in the second quarter of 2015.
The Credit Facility accrued interest at a rate of 13.0% per annum and was secured by all of the assets of ID Rehab.
Jay B. Lewis, Chief Financial Officer of the Company, said, "We're pleased to have the ability to proactively pay off the Credit Facility in advance of its scheduled Maturity Date. Driven by operating income growth and prudent working capital management, our cash balances had increased to $933,054 as of March 31, 2015. With this level of cash, we believe we can comfortably repay and terminate our Credit Facility, significantly reduce our cash interest expense and continue to support our aggressive growth initiatives."
About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ID Watchdog, Inc.
Jay B. Lewis
Chief Financial Officer
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SOURCE ID Watchdog, Inc.