Note 4 - Financing Arrangements

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

4.

FINANCING ARRANGEMENTS

We have a credit agreement with Bank of America which was entered into on

June 15, 2017

and provides for a line of credit arrangement of

$16,000

that expires on

June 

15,

2022.

The credit arrangement also has a

$5,000

real estate term note outstanding with a maturity date of

June 15, 2022.

Under the Bank of America credit agreement, both the line of credit and real estate term notes are subject to variations in the LIBOR rate. Our line of credit bears interest at a weighted-average interest rate of

5.5%

and

4.8%

as of

December 

31,

2019

ad

2018,

respectively. We had borrowings on our line of credit of

$10,088

and

$9,264

outstanding as of

December 

31,

2019

and

December 

31,

2018,

respectively. There are

no

subjective acceleration clauses under the credit agreement that would accelerate the maturity of our outstanding borrowings.

The line of credit and real estate term notes with Bank of America contain certain covenants which, among other things, require us to adhere to regular reporting requirements, abide by annual shareholder dividend limitations, maintain certain financial performance, and limit the amount of annual capital expenditures. The availability under our line is subject to borrowing base requirements, and advances are at the discretion of the lender. The line of credit is secured by substantially all of our assets.

The Bank of America Credit Agreement provides for, among other things, a Fixed Charge Coverage Ratio of

not

less than (i) 

1.0

to

1.0,

for the

three

months ending

December 31, 2019,

six

months ending

March 31, 2020,

nine

months ending

June 30, 2020

and

twelve

months ending

September 30, 2020

and each Fiscal Quarter end thereafter.

The availability under the line is subject to borrowing base requirements, and advances are at the discretion of the lender. At

December 31, 2019

and

2018,

we had unused availability under our line of credit of

$4,148

and

$6,137,

respectively, supported by our borrowing base. The line is secured by substantially all of our assets.

In the

second

quarter of

2019,

our China operations entered into a line of credit arrangement with China Construction Bank which provides for a line of credit arrangement of

6,000,000

Renminbi (RMB), approximately

$860,

that expires on

April 3, 2021.

This line of credit bears an interest rate of

6%

and we had

no

amounts outstanding as of

December 31, 2019.

Long-term debt balances at

December 31, 2019

and

2018

consisted of the following (in thousands):

	December 31,			December 31,
	2019			2018
Term note payable - Bank of America
Real estate term note bearing interest at one-month LIBOR + 2.25% (4.1% and 4.8% as of December 31, 2019 and 2018, respectively) maturing June 15, 2022 with monthly payments of approximately $41,000 plus interest secured by substantially all assets.	$	3,755		$	4,253
Devicix Acquistion Note 1 payable to DeLange Holdings, matured on July 1, 2019.		-			156
Devicix Acquistion Note 2 payable to DeLange Holdings, matured on July 1, 2019.		-			203
		3,755			4,612
Discount on Devicix Notes Payable		-			(23	)
Debt issuance Costs		(132	)		(185	)
Total long-term debt		3,623			4,404
Current maturities of long-term debt		(444	)		(780	)
Long-term debt - net of current maturities	$	3,179		$	3,624

Future maturity requirements for long-term debt outstanding as of

December 31, 2019,

are as follows:

Years Ending December 31,	Amount
2020	$	498
2021		498
2022		2,759
Total	$	3,755