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Revolving Line of Credit
12 Months Ended
Dec. 31, 2021
Revolving Line of Credit [Abstract]  
Revolving Line of Credit

Note 6 – Revolving Line of Credit

 

On August 6, 2021, the Company and Regions Bank (“the “Lender”) entered into a Business Loan Agreement (the “Business Loan Agreement”), effective as of July 30, 2021, under which the Company was provided a revolving line of credit in the amount of $6,000,000. The Business Loan Agreement supersedes the Company’s previous $6,000,000 revolving line of credit from the Lender, entered into on August 31, 2018, that was scheduled to expire on August 31, 2021. The revolving line of credit under the Business Loan Agreement is evidenced by a promissory note and is secured principally by the Company’s inventory and accounts receivable.

 

The Business Loan Agreement bears interest at a variable annual rate of LIBOR plus 1.35%, computed on a 365/360 basis. All outstanding principal plus all accrued unpaid interest is due upon Lender’s demand or when the Business Loan Agreement expires on August 30, 2024.

 

At December 31, 2021 and 2020, the Company had no borrowings under its then-existing revolving line of credit provided by the Business Loan Agreements.