Revolving Credit Facility

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Revolving Credit Facility

6. Revolving Credit Facility

In September 2010, the Company entered into a revolving credit facility with a financial institution. The credit facility agreement, as amended, provides for borrowing capacity up to $7.5 million. The credit facility expires on April 1, 2019. As of September 30, 2016 and December 31, 2015, there was no balance outstanding on the credit facility.

The credit facility 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 requires payment of an unused line fee of 0.25% per quarter of the unused portion, standby letter of credit fees of 1% per annum of the stated amount of each letter of credit and bears interest at LIBOR plus 2.75%. As of September 30, 2016, the Company was compliant with the covenant of the credit facility.