Note 7 - Revolving Line of Credit

12 Months Ended

Dec. 25, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

(7) Revolving Line of Credit

In September 2019, the Company entered into a revolving line of credit (LOC) with Massachusetts Business Development Corporation (BDC) in the amount of $2.5 million.  The agreement includes a demand note allowing the Lender to call the loan at any time.  The Company may terminate the agreement without a termination fee after 3 years.  In May of 2020 this credit line was increased to $3.0 million. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of LIBOR plus 550 basis points.  The Company is subject to certain financial and non-financial covenants, all of which have been waived by BDC for 2021.  At December 25, 2021 the Company had $0 borrowings under this LOC and its borrowing base at the time would have permitted an additional $2.9 to have been borrowed.   Total Interest Expense for 2021 was $24 thousand.