Note 4 - Financing Arrangements

3 Months Ended

Mar. 31, 2021

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,

which was amended

five

separate occasions on

December 29, 2017,

August 13, 2019,

November 12, 2019,

August 27, 2020,

and

December 1, 2020

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

3.6%

and

4.0%

as of

March 31, 2021

and

December 31, 2020,

respectively. We had borrowings on our line of credit of

$2,200

and

$3,328

outstanding as of

March 31, 2021

and

December 31, 2020,

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

1.0

to

1.0,

for the

twelve

months ending

December 31, 2020

and each Fiscal Quarter end thereafter subject only during a trigger period commencing when our availability under our line is less than

$2,000

until availability is above that amount for

30

days due to amendment to our agreement dated in

December

of

2020.

The Company met the covenants for the period ended

March 31, 2021.

On

April 15, 2020,

we entered into the Promissory Note, which provides for an unsecured loan of

$6,077

pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act and applicable regulations (the “CARES Act”) of which funds were received on

April 22, 2020.

The Promissory Note has a term of

2

years with a

1%

per annum interest rate. Payments are deferred for

10

months after the end of the Promissory Note covered period (which is defined as

24

weeks after the date of the loan) and we can apply for forgiveness of the Promissory Note after

60

days. Forgiveness of the Promissory Note will be determined in accordance with the provisions of the Cares Act and applicable regulations. Any principal and interest amounts outstanding after the determination of amounts forgiven will be repaid on a monthly basis.

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

March 31, 2021,

we had unused availability under our line of credit of

$7,558,

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

Long-term debt at

March 31, 2021

and

December 30, 2020

consisted of following:

	March 31,			December 31,
	2021			2020
Real estate term notes bearing interest at one-month LIBOR + 2.00% (2.25% and 4.3% as of March 31, 2021 and December 31, 2020, respectively) maturing June 15, 2022 with monthly payments of approximately $41 plus interest secured by substantially all assets.	$	946		$	1,071
Promissory Note		6,077			6,077
		7,023			7,148
Debt issuance Costs		(64	)		(79	)
Total long-term debt		6,959			7,069
Current maturities of long-term debt		(1,964	)		(1,204	)
Long-term debt - net of current maturities	$	4,995		$	5,865