Note 5 - Line of Credit

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

5.

  Line of Credit

The Company has a credit agreement with Amegy Bank which provides a

$4.0

million revolving line of credit and previously provided up to a

$3.0

million term loan which could be drawn through

October 24, 2016.

The revolving line of credit is subject to a borrowing base derived from

80%

of eligible accounts receivable (as defined) and the Company’s minimum net worth covenant of

$20.0

million. The revolving line of credit bears interest at prime plus

0.50%

payable monthly. As of

June 30, 2017,

the Company had a

$0.2

million irrevocable standby letter of credit outstanding under the revolving line of credit. The revolving line of credit presently expires on

October 24, 2017.

On

August 16, 2016,

the Company drew

$2.7

million of the term loan and used the proceeds to fund the purchase of shares of its common stock. The term loan bears interest at

4.5%

per annum and is payable in monthly payments of interest only until

November, 2016,

followed by

47

equal monthly payments of principal and interest computed on a

60

-month amortization schedule and a final payment of principal and interest due on

October 24, 2020.

On

May 4, 2017,

the Company entered into a Seventh Amendment to Credit Agreement with ZB, N.A. dba Amegy Bank reducing the Company’s fixed charge coverage ratio through

December 31, 2017.

The Company obtained a waiver from Amegy Bank of its failure to satisfy the fixed coverage ratio for the quarter ended

June 30, 2017.

On

August 1, 2017,

the Company entered into an Eighth Amendment to Credit Agreement with ZB, N.A. dba Amegy Bank eliminating the requirement to test the fixed charge coverage ratio for the quarter ended

September 30, 2017.