Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Debt

v3.7.0.1
Note 6 - Debt
3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Debt Disclosure [Text Block]
Note
6:
Debt
 
Notes Payable
 
During
2015,
the Company delivered
12
notes payable totaling
$800,350
as a portion of the consideration paid in connection with the Company’s various acquisitions. Interest rates range from
1.5%
to
5.25%
with maturities through
February,
2017.
 
During
2016,
the Company delivered
two
notes payable totaling
$186,000
as a portion of the consideration paid in connection with the Company’s various acquisitions. Interest rates for both notes are
4.25%
with maturities through
May,
2017.
 
Maturities of notes payable are as follows as of
March
31,
2017:
 
2017   $
168,000
 
Thereafter    
-
 
Total   $
168,000
 
 
Credit and Security Agreement
 
On
January
3,
2017,
the Company entered into a Credit and Security Agreement (the “Credit Agreement”), and signed a revolving credit note payable to the lender. Under the Credit Agreement, the Company is able to borrow up to an aggregate of
$5,000,000
under revolving loans. Interest on the unpaid outstanding principal amount of any revolving loans is at a rate equal to
10%
per annum, provided, that the minimum amount of interest paid in the aggregate on all revolving loans granted over the term of the Credit Agreement is
$200,000.
Interest is due and payable on the last day of each fiscal quarter in an amount determined by the Company, but not less than
$25,000.
The lender’s lending commitments under the Credit Agreement terminate in
December
2019,
unless sooner terminated in accordance with the provisions of the Credit Agreement. The Company intends to use the credit facility for general working capital needs. As of
March
31,
2017,
the Company has drawn
$1,000,000
of the
$5,000,000
available under the Credit Agreement.