bbotcs....it means they have a $2.5M line of credit they can use to buy more inventory with to ship to distributors while they wait for payment from the previously sold product to get paid to them. It allows them to ramp up sales. It also means that with them about to become solidly cash flow positive, they shouldn't need to dilute the stock ever again.
It's not a huge line of credit, but in time it should be able to be expanded. (This will be important cause as sales increase even greater in the next year, they may need more capital to deal with the delay in payment vs more product).
As collateral, they pretty much guarantee it with all the assets of the company (which is pretty standard with small cap companies).
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