Note 4 - Debt

6 Months Ended

Jun. 28, 2013

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

4.  Debt 

Notes payable consist of:

	June 28, 2013			December 28, 2012
5-year Term Loan related to purchase of warehouse	$	2,268,600		$	2,328,300
$3.0 million Senior Credit Facility, two year revolving line of credit		1,600,000			520,000
Total		3,868,600			2,848,300
Current portion		(1,719,400	)		(119,400	)
Long-term portion of notes payable	$	2,149,200		$	2,728,900

On June 25, 2012, the Company purchased its previously leased warehouse facility for $3.0 million. The purchase was financed with a $2.388 million 5-year term loan (the “Term Loan”) amortized over 20 years. Principal and interest are due monthly. Concurrent with the Term Loan, the Company entered into an interest rate swap agreement that expires in June 2017 concurrent with the maturity of the Company's Term Loan. The interest rate swap agreement has an initial notional amount of $2.388 million and provides for the Company to pay interest at a fixed rate of 1.43% while receiving interest for the same period at the one-month LIBOR rate on the same notional principal amount. The Company entered into the interest rate swap agreement to hedge against LIBOR movements on current variable rate indebtedness totaling $2.388 million at one-month LIBOR plus 2.50%, thereby fixing the Company's effective rate on the notional amount at 3.93%. One-month LIBOR was 0.19% as of June 28, 2013. The swap agreement qualifies as an “effective” hedge under U.S. GAAP. As of June 28, 2013, the fair market value of the interest rate swap included in other accrued expenses is approximately $33,900.

On March 23, 2012, the Company entered into the senior credit facility (the “Facility”) with Fifth Third Bank. The Facility provides for a revolving line of credit with a maturity of two years and a maximum borrowing capacity of $3.0 million. The proceeds of the Facility were used to repay all outstanding indebtedness and fees under the Moriah loan. The Facility is available for general corporate purposes. The Facility is secured by a first priority lien on substantially all of the Company’s assets. The Facility contains customary events of default and covenants including among other things, covenants that restrict but do not prevent the Company from incurring certain additional indebtedness, creating or permitting liens on assets, paying dividends and repurchasing stock, engaging in mergers or acquisitions and make investments and loans.

On March 22, 2013, the Company amended the Facility to reduce the interest rate to an applicable margin of LIBOR plus 2.50%. Prior to this Amendment, borrowings under the Facility bore interest at a rate equal to an applicable margin of LIBOR plus 3.00%. In addition to paying monthly interest on outstanding principal under the Facility, the Company is required to pay a quarterly unutilized 0.25% commitment fee to the lender, based on the daily unused balance of the Facility. The Company may voluntarily repay outstanding loans under the Facility at any time without premium or penalty. The amount available for borrowing under the Facility was $1,400,000 and $2,480,000 as of June 28, 2013 and December 28, 2012, respectively. As of June 28, 2013, the current portion of notes payable includes all amounts due under the Facility.