Note 4 - Loan Payable to Officer

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

4.

Loan Payable to Officer

On

February

9,

2017,

the Company entered into an unsecured revolving promissory note to borrow up to

$3,400,000

from G. Ward Paxton, the Company’s Chief Executive Officer (the “CEO Note”). Under the terms of the note, the Company

may

borrow, repay, and re-borrow on the loan as needed up to an outstanding principal balance due of

$3,400,000

at any given time through

March

2018.

On

March

2,

2017,

the Company amended the CEO Note described above on the same terms, with the Company being able to borrow, repay, and re-borrow on the note as needed up to an outstanding principal balance due of

$3,700,000

at any given time through

March

2019.

Amounts borrowed from this officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus

1%

(5%

at

March

31,

2017).

All outstanding borrowings and accrued but unpaid interest is due on

March

31,

2019.

As of

March

31,

2017,

the borrowings outstanding totaled

$3,465,000

and accrued interest totaled

$224,000.