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Note 3 - Notes Payable
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Debt Disclosure [Text Block]
Note
3.
  Notes Payable
 
The Company has a credit agreement with Amegy Bank which provides a
$4.0
million revolving line of credit and previously provided up to a
$3.0
million term loan which could be drawn through
October 24, 2016.
The revolving line of credit is subject to a borrowing base derived from
80%
of eligible accounts receivable (as defined) and the Company’s minimum net worth covenant of
$20.0
million. The revolving line of credit bears interest at prime plus
0.50%
payable monthly. As of
December 31, 2017,
the Company had a
$0.2
million irrevocable standby letter of credit outstanding under the revolving line of credit. The revolving line of credit presently expires on
October 24, 2018.
 
On
August 16, 2016,
the Company drew
$2.7
million of the term loan and used the proceeds to fund the purchase of shares of its common stock from Lorex Investments AG (“Lorex”). The term loan bears interest at
4.5%
per annum and is payable in monthly payments of interest only until
November, 2016,
followed by
47
equal monthly payments of principal and interest computed on a
60
-month amortization schedule and a final payment of principal and interest due on
October 24, 2020.
 
On
May 4, 2017,
the Company entered into a Seventh Amendment to Credit Agreement with Amegy Bank reducing the Company’s fixed charge coverage ratio through
December 31, 2017.
The Company obtained a waiver from Amegy Bank of its failure to satisfy the fixed coverage ratio for the quarter ended
June 30, 2017.
On
August 1, 2017,
the Company entered into an Eighth Amendment to Credit Agreement with Amegy Bank eliminating the requirement to test the fixed charge coverage ratio for the quarter ended
September 30, 2017.
Effective
October 24, 2017,
the Company entered into a Ninth Amendment to Credit Agreement and Second Amendment to Line of Credit with Amegy Bank extending the maturity of the revolving line of credit for
one
year and increasing the fee payable upon issuance of any letter of credit from
1.0%
to
1.25%
of the face amount of the letter of credit (but
not
less than
$1,000
).