Note 8 - Notes Payable

12 Months Ended

Dec. 31, 2015

(8)	Notes Payable

Notes payable consisted of the following:

	2015		2014
	(In thousands)
Revolving credit note with U.S. Bank, maximum available $6.5 million subject to borrowing base, matures June 30, 2016	$	--	$	--
Note payable to U.S. Bank for $11.8 million, interest at a 3.12% fixed rate, 60 monthly principal and interest payments of $212,468 through April 2018		5,739		8,068
Total notes payable		5,739		8,068
Less current portion		2,402		2,328
Note payable, net of current portion	$	3,337	$	5,740

The Company’s revolving credit note was renewed in June 2015 to extend the term to June 30, 2016. The maximum aggregate amount available under the revolving credit note is $6.5 million, subject to a borrowing base equal to 75.0% of the Company’s eligible accounts receivable. Borrowings under the revolving credit note bear interest at a variable annual rate, with three rate options at the discretion of management as follows: (1) 2.5% plus the daily reset one-month London Interbank Offered Rate (“LIBOR”) or (2) 2.2% plus the one-, two- or three- month LIBOR rate, or (3) the bank’s one-, two, three, six, or twelve month Money Market Loan Rate. As of December 31, 2015, and throughout 2015, the revolving credit note did not have a balance. According to the borrowing base requirements, the Company had the capacity to borrow $6.5 million as of December 31, 2015.

The term note and revolving credit note are secured by certain of the Company’s assets, including the Company’s land, building, accounts receivable and intangible assets. The term note and the revolving credit note contain various restrictions and covenants applicable to the Company, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions on the ability of the Company to consolidate or merge, create liens, incur additional indebtedness or dispose of assets. As of December 31, 2015, the Company was in compliance with the financial covenants.

The remaining note payable maturities for each year subsequent to December 31, 2015, are as follows:

	Total Payments		2016		2017		2018
			(In thousands)
Notes payable	$	5,739	$	2,402	$	2,480	$	857