GENERAL CREDIT AGREEMENT

9 Months Ended

Sep. 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 $6.0 million and allows for letters of credit in the aggregate amount of up to $2.0 million to be issued under the credit agreement. As of September 30, 2020, the bank issued a $1,250,000 letter of credit on behalf of the Company and therefore, the Company has an available credit line up to $4,750,000.  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, 2020 to extend the maturity date to December 31, 2020. As of September 30, 2020, the outstanding balance on the line of credit was $0.