4. Revolving Line of Credit |
3 Months Ended |
|---|---|
Mar. 31, 2017 | |
| Revolving Line Of Credit | |
| 4. Revolving Line of Credit |
The Company has a revolving line of credit with a bank providing for demand or short-term borrowings of up to $1,000,000. The line expires on May 31, 2017. As of March 31, 2017, the Company was in default of a covenant to maintain a minimum tangible net worth of $1,800,000. The Company’s bank has issued a waiver of the default through the expiration of the current term of the line of credit. At that time the bank will review the Company’s balance sheets and results of operations for 2017. The Company anticipates the bank will renew its line of credit with some adjustment to terms, covenants, or both, but can provide no assurance that the bank will indeed renew the line of credit nor renew it under terms deemed favorable to the Company. As of March 31, 2017, no amounts were outstanding under this line of credit. The Company did not borrow against this line of credit in the last twelve months.
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