Revolving Credit Facility

3 Months Ended

Mar. 31, 2014

8.	Revolving Credit Facility

In September 2010, the Company entered into a revolving credit facility with a financial institution. The agreement, as amended, provides for a maximum borrowing capacity of up to $6.0 million as of March 31, 2014. As of March 31, 2014 and December 31, 2013, there was no balance outstanding on the credit facility.

The credit facility expired on May 1, 2014, is secured by the assets of the Company, and contains a restrictive covenant that requires the Company to maintain a minimum cash and cash equivalents balance of $3.0 million. The terms of this agreement required payment of an unused line fee of 0.25% per quarter of the unused portion and bore interest at LIBOR plus 2.75%. As of March 31, 2014 and December 31, 2013, the Company was compliant with the amended covenant of the credit facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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