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Note 8 - Long-term Debt
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Long-term Debt [Text Block]
NOTE
8:
     LONG-TERM DEBT
 
The Company’s revolving credit facility with HSBC Bank, USA, N.A. (“HSBC”) expired by its terms on
September 1, 2018.
The Company elected
not
to renew its credit line at this time because (a) renewal terms were
not
acceptable to it; (b) the Company has
not
borrowed against this facility in the past
ten
years, and (c) the Company has determined that it has sufficient cash and cash equivalents to meet its working capital cand capital expenditure requirements over the next
twelve
months. The Company is continuing to have discussions with HSBC about securing a new revolving credit facility on mutually acceptable terms; however, there can be
no
assurance that the Company and HSBC will be able to reach an agreement.
 
The Company has a loan agreement with HSBC which is secured by a mortgage against our facility at
355
South Technology Drive, Central Islip, NY. The loan is payable in
120
consecutive equal monthly installments of principal of
$25,000
plus interest thereon and a final balloon payment upon maturity in
March 2022.
The balances on the mortgage at
September 30, 2018
and
December 31, 2017
were approximately
$2.7
and
$3.0
million, respectively. Interest accrues on the loan, at the variable rate of LIBOR plus
1.75%,
which was
4.01%
and
3.31%
at
September 30, 2018
and
December 31, 2017,
respectively. At
September 30, 2018,
the Company was
not
in compliance with
one
of the financial covenants and has received a waiver from HSBC until
October 1, 2019.
 
The Company has an additional loan agreement with HSBC which is secured by a mortgage against our facility at
555
North Research Place, Central Islip, New York. The loan is payable in
60
consecutive monthly installments of approximately
$63,000
including interest. Interest accrues on the loan at the fixed rate of
3.91%.
The maturity date for the Note is
December 1, 2022.
The outstanding principal balances as of
September 30, 2018
and
December 31, 2017
were approximately
$10.1
million and
$10.4
million, respectively. At
September 30, 2018,
the Company was
not
in compliance with
one
of the financial covenants and has received a waiver from HSBC until
October 1, 2019.