Notes Payable to Bank and Long-Term Debt

9 Months Ended

Sep. 30, 2014

Notes Payable to Bank and Long-Term Debt [Abstract]

Notes Payable to Bank and Long-Term Debt

E.Note Payable to Bank

	September 30, 2014		December 31, 2013
Note Payable:	(in thousands)
MtronPTI revolving loan with J.P. Morgan Chase Bank, N.A.	$	-		1,181

On August 29, 2014, MtronPTI paid off and terminated its $1.5 million revolving line of credit entered into on June 30, 2011, with JPMorgan Chase Bank, N.A. (the "Chase Revolving Loan").  The Chase Revolving Loan was scheduled to expire on September 30, 2014. The Chase Revolving Loan was secured by a $1.5 million cash collateral deposit and by a general lien on all of MtronPTI's assets, both of which have been released. The Chase Revolving Loan was scheduled to expire on September 30, 2014.

Prior to the termination of the Chase Revolving Loan, management began an active search for alternative financing in order to obtain more favorable terms.  On September 30, 2014, MtronPTI entered into a Loan Agreement, dated as of September 30, 2014, with City National Bank of Florida ("City National") (the "CNB Loan Agreement").  The CNB Loan Agreement provides for a revolving line of credit in the amount of $3,000,000 (the "CNB Revolver"). The CNB Revolver bears interest at a variable rate equal to 30-day LIBOR plus two hundred (200) basis points to be set on the first day of each month.

The CNB Loan Agreement  is secured only by cash collateral and does not require any other liens.  In connection with the CNB Loan Agreement, MtronPTI also entered into a Cash Collateral Agreement with City National (the "CNB Cash Collateral Agreement) and delivered a Revolving Promissory Note  in the principal amount of $3,000,000 to City National (the "CNB Revolving Promissory Note").  The CNB Cash Collateral Agreement provides that if there are amounts outstanding under the CNB Revolver, City National will hold cash collateral equal to the amounts outstanding under the CNB Revolver in a non-interest bearing deposit account.  Provided that MtronPTI is not in default of any of its obligations under the CNB Loan Agreement, CNB Revolving Promissory Note or the CNB Cash Collateral Agreement, the funds deposited by MtronPTI under the CNB Cash Collateral Agreement are restricted only to the extent of the outstanding principal amount under the CNB Revolver.

Under the terms of the CNB Loan Agreement and the CNB Revolving Promissory Note, MtronPTI may borrow under the CNB Revolver until September 30, 2016, unless the term of the CNB Revolving Promissory Note is extended.

The CNB Loan Agreement, CNB Revolving Promissory Note and CNB Cash Collateral Agreement provide for customary events of default including but not limited to payment defaults, breach of other obligations under the CNB Loan Agreement, CNB Revolving Promissory Note and CNB Cash Collateral Agreement, bankruptcy or insolvency, material default with respect to any obligation owed to City National and default with respect to other material indebtedness.

As of September 30, 2014, there was no balance outstanding under the CNB Revolver.

F.Stock-Based Compensation