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Note 5 - Debt
9 Months Ended
May 26, 2013
Disclosure Text Block [Abstract]  
Long-term Debt [Text Block]

5.              DEBT:


During the quarter ended May 26, 2013, the Company entered into a new mortgage agreement with its bank. The mortgage was for $4.2 million, carries an interest rate of 2.843%, requires monthly payments of $22,964 based on a 20 year amortization schedule and matures on May 8, 2018. The new mortgage satisfied the existing mortgage of $1.1 and provided the Company $3.1 million to use toward its building expansion project. The mortgage is secured by all assets of the Company.


Also during the quarter ending May 26, 2013, the Company entered into an Interim Financing Agreement with its bank for $3.15 million. The Agreement expires July 21, 2013 and carries an interest rate based on the 30 day LIBOR rate plus 2%. The Agreement provides financing for eight new pieces of equipment that were delivered to the Company at various points during the fiscal 2013 third quarter. At May 26, 2013, the Interim Funding Agreement had a balance of $1,560,000.


Subsequent to the end of the quarter ending May 26, 2013, the Company entered into a long term debt agreement with its bank to finance the eight pieces of equipment. The agreement is for $3.1 million, carries an interest rate of 3.54%, requires monthly payments of $41,981 based on a seven year amortization schedule and is secured by the equipment. With the closing of this debt agreement, the Company has classified approximately $200,000 of the $1,560,000 balance of the Interim Funding Agreement in current liabilities with the remainder classified as long-term debt.