Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt Convertible Debt

v3.5.0.2
Convertible Debt Convertible Debt
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
CONVERTIBLE DEBT
CONVERTIBLE DEBT
On May 23, 2016, the Company repurchased $1 million of its convertible bonds on the open market. This resulted in the company writing off a small portion of the original underwriter's discount and deferred debt costs, as well as recognizing a gain on extinguishment of debt of $72 thousand which is included in Interest Expense in the Consolidated Statements of Income.
The following is a summary of the impact of Convertible Notes on interest expense for the three and six months ended June 30, 2016 and 2015, respectively:
Convertible Note Interest Expense
 
 
For the Three Months Ended
 
For the Six Months Ended
 
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
7% Convertible Notes
 
$
1,983,528

 
$
44,722

 
$
3,996,028

 
$
44,722

Discount Amortization
 
185,727

 
4,183

 
373,962

 
4,183

Deferred Debt Issuance Amortization
 
12,703

 
197

 
24,958

 
197

Total
 
$
2,181,958

 
$
49,102

 
$
4,394,948

 
$
49,102


The Convertible Notes were initially issued with an underwriters' discount of $3.7 million which is being amortized over the life of the Convertible Notes. Including the impact of the convertible debt discount and related deferred debt issuance costs, the effective interest rate on the Convertible Notes is approximately 7.7 percent, respectively, for the three and six months ended June 30, 2016.