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Line of Credit
12 Months Ended
Nov. 03, 2017
Debt Disclosure [Abstract]  
Line of Credit

NOTE 5 - Line of Credit:

 

We maintain a line of credit with Wells Fargo Bank, N.A. that expires on March 1, 2018. The line of credit was expanded during the first quarter of fiscal 2017. Under the terms of this line of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or Libor plus 1.5%. The borrowing agreement contains various covenants, the more significant of which require us to maintain a minimum tangible net worth, a minimum quick ratio, a minimum net income after tax and total capital expenditures less than $5,000. The Company was in violation of the capital expenditure covenant which was subsequently waived by letter dated December 22, 2017. The Company was in compliance with all other covenants as of November 3, 2017. There have been no borrowings under this line of credit during fiscal 2017.