9.Debt

Debt consists of the following (in thousands):

	March 31, 2016			December 31, 2015
Line of credit with FGI	$	4,109		$	3,513
$1.5 million, 8% shareholder note due 2018 (1)	1,625			1,623
$3.0 million, 8% subordinated convertible shareholder notes due 2018 (1)	2,975			2,972
$3.0 million, 8% shareholder note due 2018 (1)	2,968			2,964

	11,677			11,072
Less current portion	(4,109		)	(3,513		)

	$	7,568		$	7,559

(1) The aggregate amount of unamortized debt discount was $0.1 million at March 31, 2016
and December 31, 2015. Refer to Note 2, “Liquidity and Going Concern”, regarding
recent amendments to the shareholder notes.

Line of Credit with FGI

At March 31, 2016, the Company had $3.4 million of gross accounts receivable pledged to FGI as collateral for short-term debt in the amount of $2.6 million. At March 31, 2016, the Company also had $1.5 million in borrowings outstanding against eligible inventory. The Company was in compliance with the terms of the FGI Facility at March 31, 2016. However, there is no guarantee that the Company will be able to borrow to the full limit of $7.5 million if FGI chooses not to finance a portion of its receivables or inventory.