Note 8 - Notes Payable

12 Months Ended

Dec. 31, 2016

( 8)	Notes Payable

Note

s payable consisted of the following:

	2 016		20 15
	(In thousands)
Revolving credit note with U.S. Bank, maximum available $6.5 million subject to borrowing base, matures June 30, 2017	$	--	$	--
Note payable to U.S. Bank for $11.8 million, interest at a 3.12% fixed rate, monthly principal and interest payments of $212,468 through April 2018		3,540		5,739
Total notes payable		3,540		5,739
Less current portion		2,683		2,402
Note payable, net of current portion	$	857	$	3,337

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,

twelve

month Money Market Loan Rate. As of

December

31,

2016

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,

2016.

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,

2016,

the Company was in compliance with the financial covenants.

The

remaining note payable maturities for each year subsequent to

December

31,

2016,

are as follows:

	Total Payments		2017		2018

Notes payable	$	3,540	$	2,683	$	857