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Line of Credit
3 Months Ended
Mar. 31, 2017
Line of Credit [Abstract]  
Line of Credit
Note 5. Line of Credit

We have a loan agreement with Venture Bank, a Minnesota banking corporation, providing us with a $7.0 million secured revolving credit facility (the “Facility”), subject to eligible accounts receivable and inventory, and secured by substantially all of our assets.  The Facility was amended in March 2017.  Under the amended Facility, the Facility will expire on September 18, 2018.
 
Under the Facility, we may borrow the lesser of:  (a) the sum of (i) eighty percent (80%) of the value of eligible accounts receivable; and (ii) forty percent (40%) of the value of eligible inventory capped at $2.5 million; or (b) $7 million.  As of March 31, 2017, based on eligible receivables and inventory, our total available borrowing base was approximately $6,068,000.  We did not have any borrowings under the facility as of March 31, 2017.
 
Loans under the Facility bear interest at a rate per annum equal to the Wall Street Journal Prime Rate plus 1.25%, provided that in no case will the interest charged be less than 5.25%.  In the event that there is an event of default under the Facility, the interest rate will be increased by 6.0% for the entire period that an event of default exists.  In addition, the Borrowers will pay a non-usage fee of 0.15% based on the average unused and available portion of the Facility on a monthly basis.