Notes Payable

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Note 8 - Notes Payable

	March 31, 2016		December 31, 2015
Variable rate bank notes due May 31, 2018. Principal and interest payable monthly with a balloon payment due at maturity.	$	3,719	$	3,846
Variable rate bank notes due May 31, 2019. Principal and interest payable monthly with a balloon payment due at maturity.		4,030		4,113
Total notes payable		7,749		7,959
Less current maturities		840		840
Total long-term portion	$	6,909	$	7,119

The variable rate bank notes are subject to interest at the prime rate or at the LIBOR rate plus 2.5% and are collateralized by substantially all of the assets of the Company. In addition, under the terms of the related agreements, the Company is subject to minimum fixed charged ratio and tangible net worth thresholds, which among other things may limit the Company's ability to pay dividends or repurchase shares of its common stock. The Company was in compliance with these financial covenants at March 31, 2016. Further, under the agreements the Company is required to deliver its annual and quarterly financial statements and related SEC filings within specified time frames.

In addition, the Company has a $5 million revolving credit facility. Borrowings under the facility are subject to interest at the prime rate or LIBOR plus 2.5%. As of March 31, 2016 and December 31, 2015 there were no borrowings under the facility. Unless renewed the facility expires in July 2016.