4. Line of Credit

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Line of Credit

We have a $40.0 million revolving credit facility with a money center bank pursuant to which the lender is obligated to make advances until October 1, 2021. The credit facility is secured by substantially all our inventories, equipment and accounts receivable. Interest under the credit facility is assessed at 30-day, 60-day or 90-day LIBOR, as selected by us, plus one percent (1.42 percent at December 31, 2015) and is payable monthly. We had no outstanding borrowings under the credit facility at December 31, 2015 or 2014.  At any time during the term, we may convert any or all outstanding amounts under the credit facility to a term loan with a maturity of two years. Our ability to borrow funds under the credit facility from time to time is contingent on meeting certain covenants in the loan agreement, the most restrictive of which is the ratio of total debt to earnings before interest, income tax, depreciation and amortization.  At December 31, 2015, we were in compliance with all of those covenants.