8. Notes Payable

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Notes Payable

Notes payable consisted of the following:

	December 31,
	2016			2015
Variable rate term loan due May 31, 2018. Principal and interest (3.11% at December 31, 2016) payable monthly with a balloon payment due at maturity.	$	3,339		$	3,846
Variable rate term loan due May 31, 2019. Principal and interest (3.12% at December 31, 2016) payable monthly with a balloon payment due at maturity.		3,780			4,113
Total notes payable		7,119			7,959
Less current portion		(840	)		(840	)
Total long-term portion	$	6,279		$	7,119

The variable rate term loans 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. Further, under the agreements the Company is required to deliver its annual and quarterly financial statements and related SEC filings within specified timeframes. The Company was in compliance with these financial covenants at December 31, 2016.

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 December 31, 2016 there were no borrowings under the facility. Unless renewed the facility expires in July 2017.

Future maturities of notes payable at December 31, 2016, are as follows:

2017	$	840
2018		3,165
2019		3,114
Total	$	7,119