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Note 5 - Debt and Line of Credit
6 Months Ended
Feb. 24, 2013
Long-term Debt [Text Block]
5.             DEBT AND LINE OF CREDIT:

During the quarter ended February 24, 2013, the Company renewed and modified its Revolving Line of Credit with its bank.  Under the agreement the Company can borrow up to $3 million through May 31, 2013 at which time the maximum amount that can be borrowed will be reduced to $1 million.  The agreement expires on February 1, 2014, is collateralized by all assets of the Company and carries an interest rate of LIBOR plus 2%.  The agreement also contains restrictive provisions requiring a minimum net worth and current ratio, a maximum debt to tangible net worth ratio as well as a debt service coverage ratio.  At February 24, 2013, the Company was in compliance with these provisions.

As of February 24, 2013 the Company had borrowed $2.5 million against the revolving line of credit.  It is the Company’s anticipation that it will use the line of credit to supplement its own cash while the building addition is in progress and then payoff any balance on the line of credit at the completion of the building addition with a new mortgage that will encompass the existing as well as the new building addition.