BANK DEBT

The Company entered into a Credit Agreement on

June 1, 2017

with JPMorgan Chase Bank, N.A. as lender, which was subsequently amended in connection with funding the acquisition of CAD Enterprises, Inc. (“CAD”) on

July 5, 2018 (

as amended, the “Credit Agreement”). As amended, the Credit Agreement is comprised of a revolving facility in the amount of

$12,000,000,

subject to a borrowing base (determined based on

80%

of Eligible Accounts, plus

50%

of Eligible Progress Billing Accounts, plus

50%

of Eligible Inventory, minus Reserves, each as defined in the Credit Agreement) and a term A loan in the amount of

$6,000,000.

Outstanding borrowings on the term A loan are payable in consecutive monthly installments, which currently amount to

$111,111

per month. The Credit Agreement was amended on

September 30, 2019

to expand the revolving loan amount from

$12,000,000

$20,000,000,

subject to a borrowing base, and to extend the maturity of revolving facility from

June 1, 2021

June 1, 2024.

The Credit Agreement was amended on

December 30, 2019

to eliminate the borrowing base. The Credit Agreement was amended on

March 2, 2021

to expand the revolving loan amount from

$20,000,000

$30,000,000

The revolving facility under the Credit Agreement includes a

million sublimit for the issuance of letters of credit thereunder. Interest for borrowings under the revolving facility accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i) (

0.25%

) for Prime Rate loans and (ii)

1.75%

for LIBOR loans. The maturity date of the revolving facility is

June 1, 2024.

Interest for borrowings under the term A loan accrues at a per annum rate equal to Prime Rate or LIBOR plus applicable margins of (i)

0.25%

for Prime Rate loans and (ii)

2.25%

for LIBOR loans. The maturity date of the term A loan is

December 1, 2022.

The Credit Agreement includes a commitment fee on the unused portion of the revolving facility of

0.25%

per annum payable quarterly. The obligations of the Company and other borrowers under the Credit Agreement are secured by a blanket lien on all the assets of the Company and its subsidiaries. The Credit Agreement also includes customary representations and warranties and applicable reporting requirements and covenants. The financial covenants under the Credit Agreement include a minimum fixed charge coverage ratio, a maximum senior funded debt to EBITDA ratio and a maximum total funded debt to EBITDA ratio.

Bank debt balances consist of the following:

	December 31, 2020		December 31, 2019

Term Debt	$	2,777,778	$	4,111,111
Revolving Debt		10,825,797		3,722,995
Total Bank Debt		13,603,575		7,834,106
Less: Current Portion		1,333,333		1,333,333
Non-Current Bank Debt		12,270,242		6,500,773
Less: Unamortized Debt Costs		95,814		124,179
Net Non-Current Bank Debt	$	12,174,428	$	6,376,594

Minimum principal payments due on the term loan until maturity are:

	Term Loan

2021		1,333,333
2022		1,444,445
Total principal payments	$	2,777,778

The Company had

$9.2

million and

$16.3

million available to borrow on the revolving credit facility at

December 31, 2020

and

2019,

respectively.