Quarterly report pursuant to Section 13 or 15(d)

Note 14 - Lines of Credit

v3.22.1
Note 14 - Lines of Credit
3 Months Ended
Feb. 28, 2022
Notes to Financial Statements  
Debt Disclosure [Text Block]

14.

LINES OF CREDIT

 

On January 19, 2021, the Company entered into a $5.0 million revolving line of credit with a bank. The revolving line of credit bears interest at a rate equal to the Wall Street Journal Prime Rate plus 0.50%, subject to a floor of 4.00%. The interest rate on the revolving line of credit was 3.25% on February 28, 2022. The revolving line of credit is secured by the Company’s accounts receivable and inventory. The line of credit is subject to an unused fee of 0.25% paid once annually. The line of credit expires on January 19, 2024.

 

 Also on January 19, 2021, the Company entered into a $1.5 million equipment financing line of credit with a bank. The line of credit bears interest at a rate equal to the Wall Street Journal Prime Rate plus 0.50%, subject to a floor of 4.00%. The interest rate on the equipment financing line of credit was 3.25% on  February 28, 2022. The line of credit is secured by the Company’s equipment. The line of credit is subject to an unused fee of 0.25% paid once annually. The line of credit expires on January 19, 2024.

 

As of  February 28, 2022, there was no outstanding balance on the Revolving Note and the Company had not drawn on the nonrevolving equipment line of credit.  Debt issuance costs related to the line of credit were approximately $0.1 million presented as part of Other Assets in the Condensed Consolidated Balance Sheets.  Amortization of $7 thousand for the three months ended February 28, 2022 is included in Interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss.