Note 10 - Debt and Other Financing Agreements

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

10.

Debt and Other Financing Arrangements

On

March 20, 2014,

the Company entered into an equipment financing arrangement with Banc of America Leasing & Capital, LLC (the “Lender”), which it amended on

August 8, 2014,

September 15, 2015

and

October 30, 2017,

including a Master Loan and Security Agreement and related documentation (collectively the “Equipment Loan Arrangement”) which provided the Company with the ability to finance, at its option, up to

$12.8

million of new and used equipment purchases. Each such purchase financed under the Equipment Loan Arrangement is documented by the execution of an equipment note. Each note has a maturity date of

60

months from the applicable loan date, and bears interest at the then current

30

-day LIBOR rate +

2.00%

for loans made prior to

October 2017

and the

30

-day LIBOR rate +

1.75%

for loans made after

October 2017.

Principal and interest are payable over the

60

-month repayment period and principal is repayable without premium or penalty. Borrowings under the Equipment Loan Arrangement are secured by a

first

priority security interest in the equipment acquired with the proceeds of the equipment notes. Under the Equipment Loan Arrangement, the Company is subject to a maximum quarterly funded debt to EBITDA ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all loan covenants as of

December 31, 2017.

The total book value pledged as collateral for these loans as of

December 31, 2017

was

$6.9

Million.

Under the Equipment Loan Arrangement, the Company executed notes on

March 24, 2014,

May 22, 2014,

June 13, 2014,

August 8, 2014,

September 15, 2015,

March 23, 2016

and

November 10, 2017

in the amounts of

$1.1

million,

$1.9

million,

$3.0

million,

$1.0

million,

$1.1

million,

$610

thousand and

$2.1

million, respectively, for total borrowings of

$10.8

million, of which

$2.1

million and

$3.1

million was repaid in

2017

and

2016,

respectively. As of

December 31, 2017,

the Company had equipment financing line of credit availability of

$1.9

million. The weighted average interest rate for these notes for the year ended

December 31, 2017

was

3.0%

and represented

$72

thousand of interest expense. As of

December 31, 2017,

weighted average interest rate was

3.3%.

The annual principal repayment requirements for debt obligations as of

December 31, 2017

are as follows:

2018	$	957
2019		891
2020		702
2021		446
2022		381
Total long-term debt		3,377
Less current portion of long-term debt		(957	)
Total long-term debt, net of current portion	$	2,420