Note E - Debt

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE E - DEBT

On

December 11, 2017,

the Company entered into a loan agreement for a

$7,500,000

revolving line of credit facility (the “Credit Facility”) with Citizens National Bank (the “Bank”). The Credit Facility expires on

December 11, 2018

and is collateralized by the Company’s accounts receivable and inventory. Borrowings under the credit facility bear interest at the Bank’s prime rate minus

0.55%

resulting in an applicable interest rate of

4.45%

as of

June 30, 2018.

Interest payments on amounts advanced are due monthly and principal payments

may

be made at any time without penalty. All outstanding principal and accrued interest is due upon expiration of the Credit Facility. The Credit Facility contains financial covenants that require the Company to

not

permit: (

1

) tangible common shareholders’ equity to be less than

$50.0

million and (

2

) maximum debt to exceed

50%

of tangible common shareholders’ equity. At

June 30, 2018,

the Company had

no

borrowings outstanding under the Credit Facility. Subsequent to quarter-end, the Company borrowed funds under the Credit Facility and as of the filing date of this quarterly report on Form

10

-Q, the balance under the credit facility is

$2,500,000

with the applicable interest rate remaining at

4.45%.