Note 2

3 Months Ended

May. 31, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 2 – At May 31, 2015, the rate in effect under our previous agreement was 4.00%.  The revolving credit agreement was collateralized by substantially all of our assets.

We had $1,700,000 in borrowings outstanding on the revolving credit agreement at May 31, 2015 and $1,400,000 in borrowings at February 28, 2015. Available credit under the previous revolving credit agreement was $1,500,000 at May 31, 2015.

Effective July 7, 2015, we signed a Nineteenth Amendment to the Credit and Security Agreement with Arvest Bank (the Bank) which provides a $4,000,000 line of credit through June 30, 2016.  Interest is payable monthly at the prime rate.

This agreement also contains a provision for our use of the Bank’s letters of credit. The Bank agrees to issue, or obtain issuance of commercial or stand-by letters of credit provided that no letters of credit will have an expiry date later than June 30, 2016 and that the sum of the line of credit plus the letters of credit would not exceed the borrowing base in effect at the time. The agreement contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibit mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures and leasing transactions. For the quarter ended May 31, 2015, we had no letters of credit outstanding.