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7. Notes Payable
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Notes Payable

Notes payable consisted of the following:

 

   December 31, 
   2017   2016 
         
Variable rate term loan due May 31, 2018. Principal and interest (4.07% at December 31, 2017) payable monthly with a balloon payment due at maturity.  $2,832   $3,339 
           
Variable rate term loan due May 31, 2019. Principal and interest (3.86% at December 31, 2017) payable monthly with a balloon payment due at maturity.   3,447    3,780 
Total notes payable   6,279    7,119 
Less current portion   (3,166)   (840)
Total long-term portion  $3,113   $6,279 

 

The variable rate term loans are subject to interest at the prime rate or at the LIBOR rate plus 2.5% and are collateralized by substantially all of Lifeway’s assets. In addition, under the terms of the related agreements, Lifeway is subject to a minimum fixed charge coverage ratio and a minimum tangible net worth threshold, which among other things may limit our ability to pay dividends or repurchase shares of common stock. Further, under the agreements Lifeway is required to deliver its annual and quarterly financial statements and related SEC filings within specified timeframes. Although we were not in compliance with the minimum fixed charge coverage ratio covenant at December 31, 2017, we have obtained a waiver of the minimum fixed charge coverage ratio through December 31, 2018.

 

In addition, Lifeway has a $5 million revolving credit facility. Borrowings under the facility are subject to interest at the prime rate or LIBOR plus 2.5%. As of December 31, 2017 and 2016, there were no borrowings under the facility. The facility expires in July 2018.

  

Future maturities of notes payable at December 31, 2017, are as follows:

 

2018  $3,166 
2019   3,113 
Total  $6,279