Financing Arrangements

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Financing Arrangements

NOTE 9 - FINANCING ARRANGEMENTS

The Company has a variety of debt and credit facilities to satisfy the financing requirements of its operations and the countries within which it operates. These arrangements are tabulated below.

	All amounts are in $ thousands
Lines of credit	December 31, 2014		December 31, 2013
Lloyds TSB Commercial Finance		328		443
FACTOCIC		381		753
Total lines of credit	$	709	$	1,196

Long-term debt	December 31, 2014			December 31, 2013
Lloyds TSB term loan		1,316			711
Lloyds TSB property loan secured by mortgage		2,056			2,255
BPIFrance Loan		243			-
Promissory notes payable		-			2,277
Capital lease obligations		584			93
		4,199			5,336
Current portion of long-term debt		(776	)		(2,672	)
Long-term debt	$	3,423		$	2,664

Details of the borrowings set out in the table above are explained below.

Lloyds TSB Commercial Finance

On August 31, 2010, two of the Company’s UK subsidiaries, Pascall Electronics Limited (“Pascall”) and XCEL Power Systems, Ltd. (“XCEL”), each entered into a Receivables Finance Agreement with Lloyds TSB Commercial Finance Limited (“Lloyds”) (each, a “Receivables Finance Agreement” and, collectively, the “Receivables Finance Agreements”), pursuant to which Lloyds agreed to provide Pascall and XCEL with a credit facility to support their UK operations in the aggregate principal amount of £2.75 million ($4.28 million based on the exchange rate on December 31, 2014), in each case at an advance rate of 88% for UK customers and 85% for invoices issued to customers outside the UK. The facility carries a discount charge of 2.5% above the base rate, and a service fee of 0.2%. The interest and service charge are paid monthly. The Receivables Finance Agreement between Pascall and Lloyds is secured by the All Assets Debenture, dated August 31, 2010, given by Pascall in favor of Lloyds and the Receivables Finance Agreement between XCEL and Lloyds is secured by the All Assets Debenture, dated August 31, 2010, given by XCEL in favor of Lloyds. As of December 31, 2013, outstanding borrowings under the Receivable Finance Agreements were $443,000 and unutilized capacity for borrowing was $2,498,000. As of December 31, 2014, outstanding borrowings under the Receivable Finance Agreements were $381,000 and unutilized capacity for borrowing was $2.4 million.

FACTOCIC

On September 20, 2010, the Company’s French subsidiary, CXR AJ, entered into an accounts receivable financing arrangement (the “CIC Agreement”) with FACTOCIC S.A., a subsidiary of CIC Group (“CIC”), pursuant to which CIC agreed to provide CXR AJ a financing arrangement to support its French operations in the aggregate principal amount of €1.35 million ($1.63 million based on the exchange rate on December 31, 2014) at an advance rate of 90% of presented receivables. The CIC Agreement bears interest at the three month EURIBOR (currently 0.5%) plus 1.4%. As of December 31, 2014, CXR AJ had the equivalent of $381,000 of outstanding borrowings under the CIC Agreement (2013, $753,000). The total of accounts receivable at the year-end was $1.43 million. The accounts receivable which had been financed under this arrangement were $423,000 and $920,000 at December 31, 2014 and 2013, respectively.