Note 5. Current Liabilities and Debt Obligations

Accounts Payable and Other Accrued Payables

As of September 30, 2014 and December 31, 2013, the accounts payable and other accrued payables consisted of $17.0 million and $17.3 million, respectively, in trade account payables and $3.5 million and $6.0 million, respectively, in accrued payables.

Senior Revolving Credit Facility

On July 31, 2013, we amended our $30 million revolving credit facility (the "Facility") with Wells Fargo Capital Finance, LLC ("Wells Fargo") to extend the maturity date to November 13, 2014 from May 17, 2014. On March 27, 2014, we further amended the Facility to extend the maturity date to November 13, 2015. In addition, Wells Fargo issued a waiver of certain existing defaults under the Facility including failure to maintain required EBITDA (as defined in the Facility) covenants. The March 2014 amendment also amends the terms of the Facility with respect to repayment on the term loan component. Since 2010, the principal of the term loan component has been repaid in quarterly installments of $93,750. The amended Facility requires quarterly installment payments of $250,000 beginning July 1, 2014, with a final installment of the unpaid principal amount payable on November 13, 2015, the maturity date of the amended Facility. In consideration for the closing of this amendment, we paid Wells Fargo a fee of $75,000, plus expenses related to the closing.

The interest rate on the term loan component is the same as that on the revolving credit component of the Facility, which is the higher of the Wells Fargo Bank "prime rate" plus 1%, the Federal Funds rate plus 1.5%, or the 3-month LIBOR rate plus 2%. In lieu of having interest charged at the foregoing rates, the Company may elect to have the interest on all or a portion of the advances on the revolving credit component be a rate based on the LIBOR Rate (as defined in the Facility) plus 3.75%. As of September 30, 2014, we have not elected the LIBOR Rate option. Borrowings under the Facility are collateralized by substantially all of the Company's assets including inventory, equipment, and accounts receivable.

As of September 30, 2014, the interest rate on the Facility was 4.25%. We incurred interest expense in the amount of $0.2 million and $0.5 million for the three and nine months ended September 30, 2014, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2013, respectively, on the Facility.

The Facility has various covenants that may, among other things, affect our ability to merge with another entity, sell or transfer certain assets, pay dividends and make other distributions beyond certain limitations. On May 13, 2014 and June 26, 2014, Wells Fargo amended the Facility to not measure performance against the EBITDA (as defined in the Facility) covenants for the quarters ending March 31, 2014 and June 30, 2014, pending revision of the covenants to more accurately reflect the Company's recent operating results and current operating budget. The June 2014 amendment also reduced the recurring revenue covenant under the Facility from $5 million to $4.5 million. On November 13, 2014, Wells Fargo amended the Facility to not measure performance against the EBITDA covenant for the period ending September 30, 2014 and to reduce the recurring revenue covenant consistent with the June 2014 amendment. With the execution of the amendment, the Company was in compliance with the Facility's financial covenants as of September 30, 2014.

At September 30, 2014, we had outstanding borrowings of $13.0 million on the Facility, which included a $5.8 million balance of the term loan, of which $1.0 million was short-term. At December 31, 2013, we had outstanding borrowings of $19.8 million on the Facility, which included the $6.2 million term loan, of which $0.7 million was short-term. At September 30, 2014 and December 31, 2013, we had unused borrowing availability on the Facility of $4.8 million and $9.2 million, respectively. The effective weighted average interest rates on the outstanding borrowings under the Facility were 5.7% and 5.3% for the nine months ended September 30, 2014 and 2013, respectively.

The following are maturities of the Facility presented by year (in thousands):

	2014		2015		Total
Short-term:
Term loan	$	1,000	$	--	$	1,000	¹
Long-term:
Term loan	$	--	$	4,750	$	4,750	¹
Revolving credit		--		7,235		7,235	²
Subtotal	$	--	$	11,985	$	11,985
Total	$	1,000	$	11,985	$	12,985

The principal will be repaid in quarterly installments of $250,000, with a final installment of the unpaid principal amount payable on November 13, 2015.

Balance due represents balance as of September 30, 2014, with fluctuating balances based on working capital requirements of the Company.