Note 12 - Subsequent Event

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 12: SUBSEQUENT EVENT

On

August 5, 2019,

the Company entered into a Mortgage Modification Agreement, a Reaffirmation of Unlimited Continuing Guaranty, and a Note Modification Agreement with HSBC Bank USA.The Mortgage Modification Agreement amended the original Mortgage by removing the fixed charge coverage financial ratio financial covenant and replacing it with a minimum liquid Assets covenant as follows:

CVD Equipment Corporation and its consolidated subsidiaries shall own and maintain minimum Liquid Assets of (i) at least

$3,000,000

at all times for the balance of the calendar year ending

December 31, 2019 (

ii)

$3,250,000

as of

March 31, 2020, (

iii)

$3,500,000

as of

September 30, 2020, (

iv)

$3,750,000

as of

March 31, 2021, (

v)

$4,000,000

as of

September 30, 2021,

and (vi)

$4,000,000

as of each quarter end thereafter as determined by the Mortgagee. As used herein, the term "Liquid Assets" shall be deemed to mean assets of the following types and nature so long as such are

not

pledged, encumbered, hypothecated, subject to rights of offset or otherwise restricted:

In addition, the agreements provide for a cross default between the Company’s

two

existing HSBC Notes.