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Note 13 - Credit Facility and Covenant Compliance | 3 Months Ended
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Mar. 31, 2015
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] |
13. | Credit Facility and Covenant Compliance
Our Credit Facility is subject to our compliance with certain covenants, including financial covenants relating to leverage, tangible net worth, and asset coverage. The Credit Facility also contains restrictions on the Company’s ability to:
| · | make distributions and pay dividends;
| · | incur liens and encumbrances;
| · | incur further indebtedness;
| · | guarantee obligations;
| · | dispose of a material portion of assets or merge with a third party;
| · | make acquisitions; and
| · | make investments in securities.
At the end of the fourth quarter of 2014, the Company was not in compliance with the minimum tangible net worth financial covenant. As a result, on March 12, 2015, the Company obtained a Waiver and Seventh Amendment to the Credit Agreement (the “Seventh Amendment”) with its lender which accomplished the following:
| · | Waived the breach by the Company of the tangible net worth covenant in the fourth quarter of 2014.
| · | Reduced the credit line to $35 million on the date of the amendment and provided for future reductions to $25 million on June 1, 2015, and $15 million on September 1, 2015.
| · | Increased the annual interest rate from Prime + 150 basis points, or 4.75%, to Prime + 350 basis points, or 6.75%.
| · | Reset the Company’s tangible net worth covenant to $75 million commencing April 30, 2015.
| · | Required the Company to pay a $400,000 amendment fee in four equal installments on the effective date and at the end of each of the second, third and fourth quarters unless one month prior to a payment date, the Company has refinanced the entire Credit Facility.
The foregoing summary description of the Seventh Amendment is qualified in its entirety by reference to the full text of the Seventh Amendment, which has been filed with the SEC on Form 8-K dated March 12, 2015. The Company is currently in the process of replacing its existing Credit Facility with long-term financing that has less restrictive covenants and we are planning to obtain the new financing by the end of May 2015. If the Company has not replaced the Credit Facility before compliance with the tangible net worth covenant test is calculated as of April 30, 2015, the Company anticipates that it will not be in compliance with this covenant test. That calculation will be performed after completion of our monthly close for April which we expect to complete in late May. If the Company does not replace the Credit Facility with other long-term financing as anticipated, and if no waiver is obtained under the Credit Facility, noncompliance with the tangible net worth covenant test as of April 30, 2015 would result in a default of the Credit Facility. If the new financing is not consummated for any reason, we will seek to obtain a waiver of the Credit Facility covenant breach with our current lender.

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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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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