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Line of Credit and Equipment Lease Facility Agreements
3 Months Ended
Mar. 29, 2014
Debt Disclosure [Abstract]  
Line of Credit and Equipment Lease Facility Agreements

(7)        Line of Credit and Equipment Lease Facility Agreements

In early May 2014, the Company renewed its $2 million revolving line of credit (“LOC”) and $500 thousand of an equipment finance facility (“Lease Line”) with Santander Bank.  Both agreements mature in May 2015.  The LOC is secured by the accounts receivable and other assets of the Company, has an interest rate of prime (3.25% at March 29, 2014) plus one half of percent (0.5%) and a one-year term.  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 29, 2014, the Company was in compliance with existing covenants. 

 

At March 29, 2014, the Company had $56 thousand of capital equipment financed by capital lease obligations under the Lease Line and $444 thousand available remaining. Equipment financed by the Santander equipment lease qualifies for treatment as a capital lease once converted from the Lease Line to a lease. 

 

At March 29, 2014 the Company had no borrowings under the LOC while its borrowing base at the time would have permitted borrowings up to the full $2 million of the line.