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Note 14 - Subsequent Events
3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Subsequent Events [Text Block]
(
14
)
Subsequent Events
 
The Company’s operations expose it to risks associated with the COVID-
19
pandemic. Although the COVID-
19
pandemic did
not
materially impact the Company’s
first
quarter results, it has since more significantly impacted the Company’s operations. While all of the Company’s factories are deemed essential,
not
all of its customers’ operations are essential and, therefore, demand for product, especially in the automotive and consumer markets, has been negatively impacted. Partially mitigating this are increased orders from certain customers in the medical market. The COVID-
19
pandemic has also impacted the Company’s cost of manufacturing its goods, including higher labor costs, maintenance costs and manufacturing inefficiencies due to employee absenteeism and significantly enhanced cleaning and sterilization. With regard to the Company’s supply chain, there has thus far been minimal disruption in the availability of raw materials, as most of the Company’s major suppliers have also been deemed to be essential businesses.
However, to mitigate risk, the Company has increased its purchases of raw materials to establish safety stock.
 
The Company has been notified by several customers that they would be extending payment terms. The Company anticipates that these extended payment terms will be short-term in nature, but they
may
continue for a longer duration. In the beginning of
April,
the Company drew down
$5.5
million from its revolving credit facility to maintain cash reserves in the event it experiences a substantial shut down of operations, further or extended increase in manufacturing costs or significant exposure to its ability to timely collect its receivables.