Note 4 - Cash, Cash Equivalents and Restricted Cash

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

Note

4

.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments with a maturity of

three

months or less when purchased to be cash equivalents for purposes of the Condensed Consolidated Balance Sheets. Avalon maintains its cash balances in various financial institutions. These balances

may,

at times, exceed federal insured limits. Avalon has

not

experienced any losses in such accounts and believes it is

not

exposed to any significant credit risk relating to its cash and cash equivalents.

Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in restricted cash on the Condensed Consolidated Balance Sheets. Restricted cash consists of loan proceeds deposited into a project fund account to fund costs associated with the renovation and expansion of The Avalon Inn in accordance with the provisions of the loan and security agreement (See Note

9

).

In the

first

quarter of

2018,

in accordance with our Term Loan Agreement, the Company withdrew

$1.5

million from the restricted cash account for reimbursement for capital expenditures incurred in

2017

related to The Avalon Inn funded with operating cash. The Company utilized approximately

$1.3

million of those proceeds to fund the acquisition of The Boardman Tennis Center facility (See Note

16

).   

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows. Cash, cash equivalents and restricted cash consist of the following at

June 30, 2018

and

December 31, 2017 (

in thousands):

	June 30,		December 31,
	2018		2017
Cash and cash equivalents	$	2,409	$	1,025
Restricted cash		1,326		2,826
Cash, cash equivalents and restricted cash	$	3,735	$	3,851