Note 10 - Subsequent Events

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

Note

10.

  Subsequent Events

On

July 16, 2018,

the Company entered into a Tenth Amendment to Credit Agreement with ZB, N.A. dba Amegy Bank providing for an additional term loan of up to

$1,000,000

that

may

be drawn by the Company through

July 12, 2019,

for the purpose of repurchases of its common stock. The additional term loan is evidenced by a promissory note bearing interest at

5.15%

per annum and payable in monthly installments of interest only through

July 12, 2019.

Thereafter, the note is payable in monthly installments sufficient to fully amortize the outstanding principal balance in

60

months with the balance of principal and accrued interest due on

July 12, 2023.

The Tenth Amendment also revises the calculation of the fixed charge coverage ratio for the

three

quarters following the maturity date of the currently outstanding term loan, provided that such term loan is paid in full on or before its maturity date.

Amounts outstanding under the additional term loan further reduce the availability under the Company’s revolving line of credit with Amegy Bank. On

August 1, 2018,

the Company drew

$0.7

million of the additional term loan and used the proceeds to fund the purchase of

100,000

shares of its common stock in a private transaction. Therefore, the Company had additional borrowing capacity under its revolving line of credit of

$1.2

million as of

August 1, 2018.