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Revolving Credit Line
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Revolving Credit Line
Revolving Credit Line
 
The following table summarizes our revolving credit line balances as of:

 
 
June 30, 2018
 
December 31, 2017
Revolving credit line - 6.0 percent at June 30, 2018 (prime plus 1.0 percent), due September 29, 2018
 
$
4,000,000

 
$
4,900,000

Total
 
$
4,000,000

 
$
4,900,000



On March 1, 2012, we entered into a Business Financing Agreement with Bridge Bank, which is now owned by Western Alliance Bank. On April 18, 2018, we entered into the Tenth Business Financing Modification Agreement with Western Alliance Bank the parent company of Bridge Bank, N.A., our original lender, that modified the existing agreement. The modified terms require a monthly quick ratio of not less than .60 to 1.00 from February 1, 2018 through November 30, 2018; and a monthly quick ratio of not less than .70 to 1.00 on and after December 31, 2018; and the quarterly consolidated Adjusted EBITDA shall not negatively deviate from financial projections by more than $18,000 for the quarter ending March 31, 2018, $57,000 for the quarter ending June 30, 2018, $191,000 for the quarter ended September 30, 2018 and $496,000 for the quarter ended December 31, 2018, or with respect to any quarter in 2019 and beyond, by more than 25% from projections. In addition, the finance charge for outstanding advances is equal to Prime Rate plus one basis point. The agreement provided us with a revolving credit line of up to $10 million which we use to help satisfy our working capital needs. We have provided Western Alliance Bank with a first priority perfected security interest in all of our accounts and personal property as collateral for the credit facility. Available funds under the revolving credit line are 85% of eligible accounts receivable balances up to a limit of $10 million. Eligible accounts receivable is generally defined as those from United States based customers that are not more than 90 days from the date of invoice less certain contra accounts. We had approximately $2.3 million available under the revolving credit line as of June 30, 2018.

While we periodically utilize our line of credit for operating needs, as of June 30, 2018, the balance of the revolving line of credit was $4.0 million. We were in compliance with all bank covenants as of June 30, 2018.