Note 13 - Line of Credit and PPP Loans

3 Months Ended

Jan. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

13

–

Line of credit and PPP loans

In

November 2019,

we entered into an agreement for a revolving line of credit (“LOC”) in the amount of

$5.0

million. Amounts outstanding under the LOC shall bear interest at a rate of

2.0%

plus LIBOR Daily Floating Rate (“base interest rate”), with interest payable on the

first

day of each month. Borrowings under the LOC are secured by a security interest in certain assets of the Company. The LOC contains certain loan covenants. Failure to maintain the loan covenants

may

constitute an event of default, resulting in all outstanding amounts of principal and interest becoming immediately due and payable. All outstanding principal and interest is due and payable on

December 1, 2021.

On

December 30, 2020,

we closed the line of credit with

no

amounts outstanding.

In

May 2020

we applied for and received loans under the Paycheck Protection Program (“PPP”) of the CARES Act totaling approximately

$2.8

million (“PPP Loans”). The funds from the PPP Loans were used to retain employees, maintain payroll and benefits, and make lease and utility payments. Without the PPP Loans, we would have made material reductions in our workforce (particularly at Cables Unlimited). We anticipate that most of the PPP Loans will be eligible for forgiveness in accordance with the provisions of the CARES Act. To the extent

not

forgiven, the PPP Loans have a

two

-year term, a fixed interest rate of

1%,

and principal and interest payments are deferred for

six

months. As of

January 31, 2021,

the full amount of the PPP Loans was applied for forgiveness. Subsequent to

January 31, 2021,

the full amount of the PPP Loans has been forgiven and considered paid in full (including applicable interest).

Future minimum loan payments as of

January 31, 2021

were as follows:

Year ended October 31,	PPP Loans
2021 (excluding three months ended January 31, 2021)	$	1,575
2022		1,213
Total future minimum payments	$	2,788