Note 2 - Notes Payable and Long-term Debt

6 Months Ended

Jun. 30, 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 d/b/a Bank of Texas (“BOKF”) which provides us with a line of credit facility of up to

$10,000,000

for the purpose of purchasing shares of our common stock pursuant to our stock repurchase program, announced in

August 2015

and subsequently amended, which permits us to repurchase up to

2.2

million shares of our common stock at prevailing market prices through

August 2018.

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 are required to make monthly interest-only payments. At the end of this time period, we expect that the principal balance will be rolled into a

4

-year term note. We are currently working to amend this Promissory Note to extend the drawdown period and conversion date from

August 25, 2017

to

August 25, 2018

to align with our stock buyback program. 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

six

months ended

June 30, 2017.

For the

six

months ended

June 30, 2016,

we drew approximately

$3.7

million on this line which was used to purchase approximately

520,500

shares of our common stock. At

June 30, 2017,

the unused portion of the line of credit was approximately

$7.6

million.

Also, on

September 18, 2015,

we executed a Promissory Note and Business Loan Agreement with 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 require us to 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 on a trailing

four

quarter basis. For the

six

month periods ended

June 30, 2017

and

2016,

there were

no

amounts drawn on this line.

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

1.85%

(

2.860%

and

2.557%

at

June 30, 2017

and

December 31, 2016,

respectively).

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

	6/30/2017		12/31/2016
Line of Credit, as amended, in the maximum principal amount of $15,000,000 with features as more fully described above –matures September 18, 2021	$	7,371,730	$	7,371,730
Line of Credit, as amended, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – matures September 18, 2018		-		-
	$	7,371,730	$	7,371,730
Less current maturities		1,535,778		614,311
	$	5,835,952	$	6,757,419