This excerpt taken from the NSYS 10-K filed Mar 9, 2006.
NOTE 4 NOTES PAYABLE
We have a revolving line of credit of $8,000,000 at Wells Fargo Bank, N.A., (WFB) along with five term notes. Effective March 4, 2005, the line of credit was extended to January 31, 2007. These agreements are secured by substantially all of our assets and require us to maintain certain covenants, which include certain regular reporting requirements, annual shareholder dividend limitations, the maintenance of certain financial ratios, and limit the amount of annual capital expenditures.
The line of credit bears interest at prime (7.25 percent at December 31, 2005). The weighted-average interest rate on our line of credit was 6.20% and 4.34% for the years ended December 31, 2005 and 2004, respectively. We had borrowings of $4,228,234 and $7,523,058 outstanding as of December 31, 2005 and 2004, respectively.
A summary of other debt balances at December 31, 2005 and 2004 is as follows:
(1) In June 2004, we purchased, in exchange for a note payable of $250,000, the business assets of Zachariah & Lundbergh, Inc. (Z&L) a manufacturer of camera power supplies and cable assemblies used in machine vision systems for the industrial, medical/scientific and security markets. The assets purchased were comprised primarily of inventories with an estimated fair value of $170,000. We paid
NORTECH SYSTEMS INCORPORATED AND SUBSIDIARY