Quarterly report pursuant to Section 13 or 15(d)

Debt

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Debt
9 Months Ended
Sep. 30, 2018
Debt [Abstract]  
Debt

NOTE 9 – DEBT



Line of Credit

The Company has a $15,000,000 line of credit from Wells Fargo Bank.  The Company had no outstanding borrowings against the line of credit at September 30, 2018 and December 31, 2017. Due to the revolving nature of loans under our credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. The total amount available for borrowings under our credit facility at September 30, 2018 was $8,126,000, based on the borrowing base calculation. Interest on borrowings on the credit line is at LIBOR plus 2.0%  (4.3% at September 30, 2018). The credit agreement expires August 12, 2021 and is secured by assets of the Company.  Our credit agreement contains financial covenants including a minimum liquidity balance of $10,000,000. Liquidity is calculated as the sum of unrestricted cash, marketable securities and the availability on the line of credit. The Company was in compliance with its financial covenants at September 30, 2018.