GENERAL CREDIT AGREEMENT

6 Months Ended

Jun. 30, 2020

GENERAL CREDIT AGREEMENT

GENERAL CREDIT AGREEMENT

4.    GENERAL CREDIT AGREEMENT

The Company has a general credit and security agreement with a financial institution, which provides a revolving credit line up to $8,000,000 and allows for letters of credit in the aggregate amount of up to $2,000,000 to be issued under the credit agreement. As of June 30, 2020, the financial institution had issued a $1,250,000 letter of credit on the Company’s behalf, and therefore, the Company had an available credit line up to $6,750,000. The line of credit is collateralized by all receivables, inventory, equipment, and general intangibles of the Company. This agreement was amended as of September 30, 2019 to extend the maturity date to September 30, 2020. As of June 30, 2020, the outstanding balance on the line of credit was $2,865,320.