Note 2 - Notes Payable and Long-term Debt

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

2. N OTES PAYABLE AND LONG-TERM DEBT

On

September

18,

2015,

we executed a Promissory Note and Business Loan Agreement with BOKF, NA dba Bank of Texas (“BOKF”), which provides us with a line of credit facility of up to

$6,000,000

and is secured by our inventory. On

August

25,

2016,

this line of credit was amended to extend the maturity from

September

18,

2017

to

September

18,

2018.

The Business Loan Agreement contains covenants that we will maintain a funded debt to EBITDA ratio of no greater than

1.5

to

1

and that we will maintain a Fixed Charge Coverage Ratio greater than or equal to

1.2

to

1.

Both ratios are calculated quarterly and are based on a trailing

four

quarter basis.

Also on

September

18,

2015,

we executed a Promissory Note with BOKF, which provides us with a line of credit facility of up to

$10,000,000

for the purpose of purchasing our common stock. On

August

25,

2016,

this line of credit was amended to increase the availability from

$10,000,000

to

$15,000,000

for the purchase of shares of our common stock through the earlier of

August

25,

2017

or the date on which the entire amount is drawn. During this time period, we will make monthly interest-only payments. At the end of this time period, the principal balance will be rolled into a

4

-year term note. This Promissory Note is secured by a Deed of Trust on the real estate located at

1900

SE Loop

820,

Fort Worth, Texas. There were

no

amounts drawn on this line during the quarter ended

March

31,

2017.

For the quarter ended

March

31,

2016,

we drew approximately

$2.9

million on this line which was used to purchase approximately

404,000

shares of our common stock. At

March

31,

2017,

the unused portion of the line of credit was approximately

$7.6

million.

Amounts drawn under either Promissory Note accrue interest at the London interbank Eurodollar market rate for U.S. dollars (commonly known as “LIBOR”) plus

1.85%

(2.826%

and

2.557%

at

March

31,

2017

and

December

31,

2016,

respectively).

At

March

31,

2017

and

December

31,

2016,

the amount outstanding under the above agreements consisted of the following:

	2017		2016
Business Loan Agreement with BOKF, NA – collateralized by real estate; payable as follows:
Line of Credit Note, as amended, in the maximum principal amount of $15,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2021	$	7,371,729	$	7,371,729
Line of Credit Note, as amended, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2018		-		-
	$	7,371,729	$	7,371,729
Less current maturities		1,075,044		614,311
	$	6,296,685	$	6,757,419