2. Liquidity	3 Months Ended
Mar. 31, 2018
Notes to Financial Statements
Liquidity	On March 31, 2018 the Company had approximately $51 thousand in bank debt for a $3.0 million asset-based credit line, approximately $423 thousand in cash and cash equivalents, and working capital of approximately $3.2 million. The Company’s credit line has a maturity date of November 2018, and automatically renews from year to year unless cancelled under the terms of agreement. Major uses of cash during the first quarter of 2018 were increases of approximately $487 thousand in prepaid expenses, approximately $178 thousand in inventory, and approximately $606 thousand in accounts receivable. Major contributors to cash were $921 thousand in accounts payable and accrued expenses, net income of approximately $359 thousand, and approximately $152 thousand from stock option exercises. The Company continues to experience significant sales growth, and had operating profits for Q3 2017 and Q1 2018, though reported an operating loss for Q4 2017. The Company expects to maintain acceptable levels of liquidity to meet its obligations as they become due for at least twelve months from the date of issuance of the Company’s Quarterly filing of this Form 10-Q with the Securities Exchange Commission.

2. Liquidity

3 Months Ended

Mar. 31, 2018

On March 31, 2018 the Company had approximately $51 thousand in bank debt for a $3.0 million asset-based credit line, approximately $423 thousand in cash and cash equivalents, and working capital of approximately $3.2 million. The Company’s credit line has a maturity date of November 2018, and automatically renews from year to year unless cancelled under the terms of agreement.

Major uses of cash during the first quarter of 2018 were increases of approximately $487 thousand in prepaid expenses, approximately $178 thousand in inventory, and approximately $606 thousand in accounts receivable. Major contributors to cash were $921 thousand in accounts payable and accrued expenses, net income of approximately $359 thousand, and approximately $152 thousand from stock option exercises.

The Company continues to experience significant sales growth, and had operating profits for Q3 2017 and Q1 2018, though reported an operating loss for Q4 2017. The Company expects to maintain acceptable levels of liquidity to meet its obligations as they become due for at least twelve months from the date of issuance of the Company’s Quarterly filing of this Form 10-Q with the Securities Exchange Commission.