Note 7 - Notes Payable

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

7. Notes Payable

Notes payable consists of the following (in thousands, except percentages) as of:

							December 31,
	Current			Long-term			2018			2017
New Credit Facility with CoBank, ACB; variable interest rate of 6.77% at December 31, 2018, interest is quarterly, paid in arrears on the last business day of each quarter. The New Credit Facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due November 3, 2022.	$	4,350		$	70,212		$	74,562		$	85,912
Debt issuance cost		(446	)		(1,105	)		(1,551	)		(1,963	)
Notes payable, net of debt issuance cost	$	3,904		$	69,107		$	73,011		$	83,949

The Previous Credit Facility was fully repaid on

February 17, 2016.

Associated with the Previous Credit Facility, the Company had

$2.7

million in deferred financing cost. Amortization expense for the deferred financing cost associated with the

third

amendment and restatement of the Previous Credit Facility was

$141

thousand for the year ended

December 31, 2016,

which is included in interest expense. The Company wrote off

$140

thousand of prior deferred financing cost and incurred

$15

thousand in external legal fees during the year ended

December 31, 2016,

as a result of the extinguishment of the Previous Credit Facility, which is included in interest expense.

The Senior Loan Agreement was fully repaid on

November 2, 2017.

Associated with the Senior Loan Agreement, the Company had

$4.9

million in deferred financing cost. Amortization expense for the deferred financing cost associated with the Senior Loan Agreement was

$896

thousand for the year ended

December 31, 2017,

which is included in interest expense. The Company wrote off

$3,070

thousand of prior deferred financing cost and incurred

$14

thousand in external legal fees during the year ended

December 31, 2017,

as a result of the extinguishment of the Senior Loan Agreement, which is included in interest expense.

The Subordinated Loan Agreement was fully repaid on

November 2, 2017.

Associated with the Subordinated Loan Agreement, the Company had

$892

thousand in deferred financing cost. Amortization expense for the deferred financing cost associated with the Subordinated Loan Agreement was

$133

thousand for the year ended

December 31, 2017,

which is included in interest expense. The Company wrote off

$621

thousand of prior deferred financing cost and incurred

$14

thousand in external legal fees during the year ended

December 31, 2017,

as a result of the extinguishment of the Subordinated Loan Agreement, which is included in interest expense.

Associated with the New Credit Facility, the Company has

$2.1

million in deferred financing cost. Amortization expense for the deferred financing cost associated with the New Credit Facility was

$476

thousand and

$75

thousand for the years ended

December 31, 2018,

and

2017,

respectively, which is included in interest expense.

The Company had a revolving credit facility on

December 31, 2016,

of

$5.0

million associated with the Senior Loan Agreement. There was

no

balance outstanding as of

December 31, 2016.

The Senior Loan Agreement was terminated on

November 2, 2017.

The Company paid a monthly fee of

0.75%

per annum on the unused portion of the revolver loan under the Senior Loan Agreement, payable in arrears. The fee expense was

$32

thousand and

$33

thousand for the years ended

December 31, 2017,

and

2016,

respectively.

The revolving credit facility associated with the Company’s New Credit Facility had a maximum borrowing capacity of

$5.0

million on

December 31, 2018.

The revolving credit facility is available until

November 3, 2022.

There was

no

balance outstanding as of

December 31, 2018.

The Company pays a commitment fee, payable quarterly in arrears, on the unused portion of the revolver loan under the New Credit Facility. The rate declined from

0.50%

per annum to

0.38%

per annum on

October 22, 2018.

The commitment fee expense was

$24

thousand and

$4

thousand for the years ended

December 31, 2018,

and

2017,

respectively.

Maturities of notes payable for the next

five

years, assuming

no

annual excess cash flow payments, are as follows (in thousands):

2019	$	4,350
2020		4,350
2021		4,350
2022		61,512
2023		-
Total	$	74,562

A total of

$2.1

million of debt issuance cost is amortized over the life of the loan and is recorded net of the notes payable on the consolidated balance sheets.

The Company’s notes payable agreements are subject to certain financial covenants and restrictions on indebtedness, financial guarantees, business combinations and other related items. As of

December 31, 2018,

the Company was in compliance with all such covenants and restrictions.