GENERAL CREDIT AGREEMENT

12 Months Ended

Dec. 31, 2019

GENERAL CREDIT AGREEMENT

GENERAL CREDIT AGREEMENT

7.    GENERAL CREDIT AGREEMENT

The Company has a general credit and security agreement with a financial institution, which provides a revolving credit line of up to $8,000,000 and allows for a letter of credit in the aggregate amount of up to $2,000,000 to be issued under the credit agreement. This agreement was amended as of September 30, 2019 to extend the maturity date to September 30, 2020. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. The Company had borrowings of $5,933,000 under the credit line during the year ended December 31, 2019. As of December 31, 2019, the outstanding balance on the line of credit was $0. The credit agreement contains covenants requiring the Company to maintain certain financial ratios. The Company was in compliance with these requirements as of December 31, 2019.