Note 8 - Credit Facility

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

8

.  -  CREDIT FACILITY

The Company maintained a $5.0 million revolving bank credit facility that was scheduled to mature on December 19, 2016. The applicable interest rate on outstanding balances was LIBOR plus 1.0% to 1.5% based on certain factors included in the credit agreement. At December 31, 2014, the Company’s interest rate on the $3.5 million outstanding balance was 1.7%. The unused portion of the credit facility was subject to an unused facility fee ranging from .25% to .75% depending on total deposits with the creditor. All borrowings under this facility were secured by marketable securities. The outstanding balance of $3.5 million as of December 31, 2014 was classified as short-term debt on the Company’s condensed consolidated balance sheets. The Company did not make any borrowings under this facility in the three or six months ended June 30, 2015, and there was no outstanding amount due as of June 30, 2015. On June 10, 2015, the Company terminated the credit facility. The termination enabled the Company to eliminate charges of approximately $9,000 per quarter related to the unused facility fee and interest. There were no termination fees or penalties incurred or paid in connection with this termination. The Company had been negotiating with another bank lender for a new revolving facility, but the Company has postponed further negotiations pending its ability to forecast mutually acceptable financial covenants. In addition, the Company has recently been discussing alternative lending solutions with other bank lenders and will continue to evaluate its options for a bank lending relationship that is in the best interests of the Company and its shareholders.