Quarterly report pursuant to Section 13 or 15(d)

Revolving credit line

v3.8.0.1
Revolving credit line
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Revolving credit line
Revolving credit line
 
The following table summarizes our revolving credit line balances as of:

 
 
March 31, 2018
 
December 31, 2017
Revolving credit line - 5.5 percent at March 31, 2018 (prime plus .75 percent), due September 29, 2018
 
$
4,900,000

 
$
4,900,000

Total
 
$
4,900,000

 
$
4,900,000



On March 1, 2012, we entered into a Business Financing Agreement with Bridge Bank, which is now owned by Western Alliance Bank. On April 18, 2018, we entered into the Tenth Business Financing Modification Agreement with Western Alliance Bank the parent company of Bridge Bank, N.A., our original lender (see Note 15). The agreement provided us with a revolving credit line of up to $10 million which we use to help satisfy our working capital needs. We have provided Western Alliance Bank with a first priority perfected security interest in all of our accounts and personal property as collateral for the credit facility. Available funds under the revolving credit line are 85% of eligible accounts receivable balances up to a limit of $10 million. Eligible accounts receivable is generally defined as those from United States based customers that are not more than 90 days from the date of invoice less certain contra accounts. We had approximately $1.2 million available under the revolving credit line as of March 31, 2018.

While we periodically utilize our line of credit for operating needs, as of March 31, 2018, the balance of the revolving line of credit was $4.9 million. We were in compliance with all bank covenants as of March 31, 2018.