Note 3 - Debt

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

3.

            Debt

We have

a secured

$6.0

million revolving credit facility with Wells Fargo Bank, National Association with an excess availability requirement of

$2.0

million resulting in maximum borrowings of

$4.0

million under the facility, subject to borrowing base eligibility requirements.  The credit facility matures in

October 2018

and is secured by our accounts receivable, inventory and certain other assets. Borrowings under the credit facility bear interest at a variable per annum rate equal to the daily

three

-month London Bank Interbank Offered Rate plus

3.5%.

The credit facility contains covenants that, among other things, limit our ability to incur certain types of debt or liens, pay dividends, enter into mergers and consolidations or use proceeds of borrowing for other than permitted uses.

  The credit facility also includes a covenant requiring us to maintain a minimum fixed charge ratio of

not

less than

1.1

to

1.0

measured annually on a trailing

twelve

months with an initial compliance date at

December 31, 2017.  

We obtained a waiver on

November 9, 2017

for compliance with this covenant as of

December 31, 2017

,

as long as the aggregate principal outstanding under the credit facility is

not

greater than

$250,000

on

December 31, 2017.

.

At

September 30, 2017,

and

December 31, 2016,

no

borrowings were outstanding under this revolving credit facility.