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Line of Credit and Long Term Debt | 9 Months Ended
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Sep. 30, 2017
Line of Credit and Long Term Debt [Abstract] |
Debt Disclosure [Text Block] |
8. | Line of Credit and Long Term Debt
Commercial Loan Agreement Facility On June 15, 2017, the Company entered into a Loan and Security Agreement with Access National Bank (the “Loan Agreement”). The Loan Agreement provides for a $5.0 million working capital revolving line of credit through April 30, 2018 and replaces the Company’s prior credit facility with Cardinal Bank. The available amount under the working capital line of credit is subject to a borrowing base, which is equal to the lesser of (i) $5.0 million or (ii) 70% of the net unpaid balance of the Company’s eligible accounts receivable. The interest rate for the working capital line of credit is the Wall Street Journal prime rate plus 1.0%. The facility is secured by a first lien security interest on all of the Company’s personal property, including its accounts receivable, general intangibles, inventory and equipment maintained in the United States. The Loan Agreement requires that the Company (i) maintain a minimum adjusted tangible net worth of at least $4.0 million for the quarter ending December 31, 2017, increasing to $4.5 million for each quarter thereafter and (ii) maintain a current ratio of 1.10:1 tested quarterly. Under the previous credit facility with Cardinal Bank the Company was advanced and repaid approximately $3.3 million during the nine month period ended September 30, 2017. Under the current credit facility with Access National Bank the Company was advanced and repaid approximately $8.3 million and $7.8 million, respectively during the nine month period ended September 30, 2017. As of September 30, 2017, the Company was eligible to borrow up to $4.4 million under the borrowing base formula. Long-Term Debt Long-term debt consisted of the following:
|  | SEPTEMBER 30, |  | DECEMBER 31, |
|  | 2017 |  | 2016 |
|  | (Unaudited) |
Cardinal Bank mortgage dated December 17, 2010 (1) |  | $ | - |  | $ | 432,367 |
Cardinal Bank term note dated December 31, 2011 (2) |  |  | - |  |  | 74,681 |
Total |  |  | - |  |  | 507,048 |
Less: current portion |  |  | - |  |  | 94,868 |
Long-term debt, net of current portion |  | $ | - |  | $ | 412,180 |
Long-term debt related to assets held for sale, net of current portion |  | $ | - |  | $ | 412,180 |
(1) On December 17, 2010, the Company entered into a real estate purchase agreement to acquire the Lewis Center Facility for approximately $677,000 and financed a significant portion of the purchase price with a $528,000 ten-year mortgage with Cardinal Bank. On May 22, 2017, the Company completed the sale of this real estate asset and paid off the balance of the mortgage. See Note 3 for additional information regarding the sale of the property. (2) On December 31, 2011, the Company entered into a $4.0 million 5-year term note with Cardinal Bank to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. dated December 30, 2011. The Company paid the last scheduled installment on January 6, 2017. Capital Lease Obligations As more fully described in Note 6, the Company acquired two new automobiles at a cost of $93,301 and financed the purchase of these vehicles under a capital lease agreement for $80,527. Minimum lease payments required under these two new capital leases are $695 and $1,210, respectively, and these leases expire in March 2020. The following sets forth the Company’s future minimum payment obligations under these capital lease agreements for fiscal years ending September 30:
2017 |  | $ | 24,500 |
2018 |  |  | 24,500 |
2019 |  |  | 24,500 |
2020 |  |  | 12,291 |
Total principal and interest payments |  |  | 85,791 |
Less: portion representing interest |  |  | 9,028 |
Present value of minimum lease payments |  |  |  |
under capital lease agreements |  |  | 76,763 |
Less: current portion |  |  | 20,216 |
Capital lease obligations, net of current portion |  | $ | 56,547 |

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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