Note 10 - Revolving Line of Credit |
12 Months Ended |
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Dec. 31, 2023 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
Note 10. Revolving Line of Credit
On September 30, 2022, the Company entered a revolving line of credit with Summit Community Bank (“Summit”) that provided for on-demand or short-term borrowings of up to $1,000,000 at a variable interest rate equal to the prime rate as published in The Wall Street Journal, with a minimum rate of 3.99% and a maximum rate of 20.00%, and subject to a borrowing base calculated using outstanding accounts receivable. Borrowings under the line of credit are secured by the assets of the Company. The line of credit initially expired on May 16, 2023, after which Summit made several extensions of the expiration date, with the most recent extension being made to May 16, 2024. In connection with an extension of the expiration date of the line of credit, the maximum amount of borrowings permitted under the line was reduced to $500,000. As of December 31, 2023 and 2022, there was $500,000 and $425,000 outstanding, respectively, and $0 and $575,000 of borrowing availability, respectively. The interest rate in effect as of December 31, 2023, was 8.5%.
As of December 31, 2023, the fair value of debt outstanding on our revolving line of credit approximates its carrying value due to the short term nature of the facility.
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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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- References No definition available.
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