Note 4 - Credit Facility

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

4.

    CREDIT FACILITY

On

May 14, 2019,

the Company entered into a secured credit facility ("Credit Agreement") with Town Bank (“Lender”) for a

two

-year term expiring on

May 14, 2021.

The Credit Agreement provides for an

$5,000,000

revolving secured credit facility with interest rates of

1.50%

over LIBOR. The Credit Agreement also provides for letters of credit for the benefit of the Company of up to a sublimit of

$1,000,000.

There are

no

unused line fees in the credit facility. The Company and the Lender also entered into a General Business Security Agreement dated

May 14, 2019

under which the Company granted the Lender a security interest in substantially all of the Company’s assets in connection with the Company’s obligations under the Credit Agreement. The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, disposition of assets, mergers and liquidations, among other restrictions. The Company is currently in compliance with all covenants related to the Credit Agreement. As of 

September 30, 2019

, and 

June 30, 2019

, there were

no

outstanding borrowings on the facility.