XML 21 R11.htm IDEA: XBRL DOCUMENT v3.21.2

NOTE 5 — Bank Financing Arrangements

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

NOTE 5 — Bank Financing Arrangements

NOTE 5 — Bank Financing Arrangements

The Company initially entered into a Business Financing Agreement with Western Alliance Bank (the “Bank”), an Arizona corporation, on February 27, 2014, and this agreement has been amended and extended through the years.

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.

Eighth Financing Agreement

On August 28, 2020, the Company entered into the Eighth Amended and Restated Business Financing Agreement with the Bank. The Bank consented to the issuance of subordinated debt in the amount less than $2,000,000, at the annual interest rate less than 10% and maturing no sooner than 3 years.

Amended and Restated Business Financing Agreement

On January 29, 2021, the Company entered into an Amended and Restated Business Financing Agreement (the “Financing Agreement”) with the Bank. The agreement increased the Domestic Line of Credit to $3,000,000, including a $2,000,000 revolving facility and $1,000,000 nonformula loan. The $1,000,000 nonformula loan was enrolled in the CalCap Collateral Support Program and advanced on February 16, 2021. The Company will make a principal reduction payment of $125,000, plus all accrued but unpaid interest on the 30th day of each of April, July, October and January. The Financing Agreement also extended the maturity date of both the Domestic and EXIM Line of Credit to January 31, 2023.

Amounts outstanding under the CalCap loan at June 30, 2021 are as follows:

		June 30, 2021
Current portion of CalCap loan		$	500,000
Long-term portion of CalCap loan			375,000
CalCap loan		$	875,000

During the six months ended June 30, 2020, total repayment of the term loan, initiated in March 2018, was $250,000. Total amount borrowed under the domestic and international lines was $4,630,000 and the total repayment was $5,592.449.

Interest expense on the CalCap loan for the three and six months ended June 30, 2021 was $11,580 and $17,552, respectively. Accrued interest payable related to the amounts outstanding under the CalCap loan at June 30, 2021 was $2,431. Interest expense on the term loan for the three and six months ended June 30, 2020 was $1,896 and $5,922, respectively. Interest expense on the amounts drawn under the Company’s bank credit lines during the three and six months ended June 30, 2020 was $3,783 and $19,384, respectively.

X

- References

No definition available.

+ Details

Name:	us-gaap_DebtDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.19(b),22(b))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

+ Details

Name:	us-gaap_ScheduleOfLineOfCreditFacilitiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration