• Filing Date: 2013-08-09
  • Form Type: 10-Q
  • Description: Quarterly report
v2.4.0.8
3. ACCOUNT PURCHASE AGREEMENT
6 Months Ended
Jun. 28, 2013
Notes to Financial Statements  
Note 3 - ACCOUNT PURCHASE AGREEMENT

At June 28, 2013, net accounts receivable sold pursuant to our account purchase agreement were approximately $7.6 million, and the facility maximum was $14 million. The effective interest rate pursuant to this agreement was 3.2% and is payable on the actual amount advanced or $3 million, whichever is greater.

 

The agreement requires that the sum of the excess available advances, plus our book cash balance at month end, must at all times be greater than accrued payroll and accrued payroll taxes. At June 28, 2013, we were in compliance with this covenant.