| NOTES PAYABLE |
Notes payable consist of
the following as of June 30, 2017 and December 31, 2016:
| |
|
June 30,
2017 |
|
|
December 31,
2016 |
|
| Revolving line of credit of $3,000,000 from U.S. Bank, dated April 9, 2009, as amended July 15, 2010, May 25, 2011, August 22, 2012, April 29, 2013, May 22, 2014, June 25, 2014, May 15, 2015 and August 15, 2016 at an interest rate of 3.0% plus the one-month LIBOR quoted by U.S. Bank from Reuters Screen LIBOR. The line of credit matured on June 15, 2017; however, U.S. Bank has agreed to extend the maturity date of the line of credit for an additional 60 days to August 15, 2017. The line of credit is secured by substantially all the assets of the Company. During the 60-day period in which U.S. Bank has extended the maturity date of the line of credit, U.S. Bank is conducting an audit of the Company’s assets securing the line of credit. Advances to the Company under the line of credit are based on 80% of the eligible receivables and 50% of the eligible inventory (such inventory amount not to exceed 50% of the borrowing base) of the Company. The Company pays interest only on this line of credit. |
|
$ |
1,950,000 |
|
|
$ |
1,950,000 |
|
| |
|
|
|
|
|
|
|
|
| Term loan of $2,600,000 from US Bank, dated September 4, 2013, at a fixed interest rate of 3.6%. The term loan amortizes evenly on a monthly basis and matures August 15, 2018. |
|
|
643,819 |
|
|
|
914,002 |
|
| Notes payable for warehouse equipment |
|
|
7,004 |
|
|
|
12,700 |
|
| Total of notes payable and advances |
|
|
2,600,823 |
|
|
|
2,876,703 |
|
| Less current portion |
|
|
2,511,710 |
|
|
|
(2,507,526 |
) |
| |
|
|
|
|
|
|
|
|
| Long-term portion |
|
$ |
89,113 |
|
|
$ |
369,177 |
|
The notes are subject to certain financial covenants for which the Company was not in compliance at June 30, 2017, but has requested
a waiver of for balance thereon |