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Line of Credit and Equipment Lease Facility Agreements
3 Months Ended
Mar. 30, 2013
Investments, All Other Investments [Abstract]  
Line of Credit and Equipment Lease Facility Agreements

(7) Line of Credit and Equipment Lease Facility Agreements

In early May 2013, the Company renewed its $2 million revolving line of credit (“LOC”) and $500 thousand of an equipment finance facility (“Lease Line”) with Sovereign Bank.   Both agreements mature in May 2014.  The LOC is secured by the accounts receivable and other assets of the Company, has an interest rate of prime plus one percent (1%) and a one-year term. Under the terms of the agreement, the Company is required to maintain its operating accounts with Sovereign Bank. The LOC and the Lease Line are cross defaulted and cross collateralized. The Company is also subject to certain financial covenants within the terms of the line of credit that require the Company to maintain a targeted coverage ratio as well as targeted debt to equity and current ratios. At March 30, 2013, the Company was in compliance with existing covenants. At March 30, 2013, the Company had $327 thousand net carrying value of capital equipment financed by advances and capital lease obligations under the Lease Line and $173 thousand available remaining. Equipment financed by the Sovereign equipment lease qualifies for treatment as a capital lease once converted from the Lease Line to a lease. At March 30, 2013 the Company had borrowed $600 thousand under this LOC and its borrowing base at the time would have permitted an additional $ 1,174 thousand to have been borrowed.