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Note 4 - Bank Financing Arrangements
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Bank Financing Arrangements

NOTE 4 — Bank Financing Arrangements

 

Sixth Financing Agreement

On June 14, 2019, the Company entered into the Sixth Amended and Restated Business Financing Agreement with the Bank. The Bank waived the default which occurred for the month ended April 30, 2019 when the Company’s Asset Coverage Ratio was 1.13 to 1.00, instead of the required 1.25 to 1.00. The Bank also increased the Eligible Receivable threshold for Ingram Micro from 50% to 60% of domestic receivables, and from 35% to 50% of all receivables (including both domestic and foreign receivables).

 

Seventh Financing Agreement

On January 8, 2020, the Company entered into the Seventh Amended and Restated Business Financing Agreement with the Bank which extends the maturity date of the Company’s revolving line of credit to January 31, 2022.

 

The Asset Coverage Ratio was 1.4 to 1.0 on March 31, 2019. During the three months ended March 31, 2020, total repayments of the term loan was $125,000. Total amount borrowed under the domestic and international lines was $3,980,000 and the total repayments was $3,452,957. Amounts outstanding under the term loan and bank credit facilities at March 31, 2020 are as follows:

 

   March 31, 2020
Long-term portion of term loan   —   
Current-portion of term loan   208,333 
Term loan  $208,333

 

 

   March 31, 2020
Lines of credit -domestic line   1,635,601 
Lines of credit -EXIM line   303,891 
Total lines of credit  $1,939,492

 

Interest expense on the term loan for three months ended March 31, 2020 was $4,027. Interest expense on the amounts drawn under the Company’s bank credit lines during the three months ended March 31, 2020 was $15,601. Accrued interest payable related to the amounts outstanding under the term loan and bank credit facilities at March 31, 2020 was $14,560.