Note 12 - Short-term Debt
|12 Months Ended|
Dec. 31, 2015
|Disclosure Text Block [Abstract]|
|Short-term Debt [Text Block]||
On July 27, 2015, the Company implemented an Asset Based Lending Agreement (the “ABL”) with The California Bank of Commerce. The Company may borrow up to $3,000,000 of their eligible Accounts Receivable. Interest accrues at a rate of 3.75% plus the prime rate with a minimum of 7.00%. In connection with this line of credit the Company paid $22,500 in fees which was recorded in the Company’s Selling, general and administrative expense in its Consolidated Statements of Operations for the year ended December 31, 2015. The line of credit automatically renews annually unless the Company provides prior written notice of its intent to cancel the agreement. Through the ABL the Company will achieve lower interest expenses and greater scalability in their credit facility.
During the term of the ABL the Company shall maintain and satisfy the following financial ratios (each of which shall be determined in accordance with U.S. GAAP, consistently applied: (a) Minimum Income Requirements . Maintain an Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) on a quarterly and non-cumulative basis of at least One Dollar ($1.00) per quarter starting with the fourth quarter of 2015.
As of December 31, 2015, the Company had an outstanding balance and unused balance in the ABL of $623,642 and $2,376,358, respectively. For the year ended December 31, 2015, the Company paid $66,456 in interest on the ABL.
The entire disclosure for short-term debt.
Reference 1: http://www.xbrl.org/2003/role/presentationRef