Note 3 - Loan Payable to Officer

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

3. Loan Payable to Officer

On

February 8, 2018,

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

$3,700,000

from G. Ward Paxton. Under the terms of the CEO Note, the Company had the ability to borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of

$3,700,000

at any given time through

March 2020.

On

February 

7,

2019,

the Company amended the unsecured revolving promissory note to borrow up to

$2,700,000

from G. Ward Paxton, the Company’s former Chief Executive Officer. Amounts borrowed under the CEO Note accrued interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus

1%.

Under the terms of the note, the Company had the ability to borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of

$2,700,000

at any given time through

March 

2021.

We reduced our borrowing under this note to

zero

as of

May 2019.

As of

October 24, 2019,

G. Ward Paxton passed away, terminating the CEO Note with the result that future borrowings thereunder will

no

longer be available to the Company. Our management will be assessing whether to replace this borrowing capacity and assessing what terms

may

be available to the Company, including whether any such terms are acceptable to the Company, if at all.