VirTra Inc (VTSI)

[TEEROY]

Liking this!!

establishing a growing line of credit will be important down the road to build inventory levels

"Note 12 – Line of Credit
For the quarter ended September 30, 2011 the Company borrowed $100,000 under a line of credit facility secured by the
Company’s receivables and guaranteed by our CEO, Bob Ferris. The terms of the credit agreement allow the Company to
access funds equivalent to 75% of eligible accounts receivable aged less than 90 days with a maximum borrowing capacity of
$250,000. The line of credit bears interest at the prime rate plus 150 basis points with a floor of five percent. As of September
30, 2011 the effective interest rate on borrowing under the line of credit was five percent.
Subsequent to the quarter end September 30, 2011 the Company executed a new line of credit that increases the Company’s
borrowing capacity up to $750 thousand dollars. Our borrowing capacity is based on a percentage of eligible receivables and
inventory and bears interest at prime plus 150 basis points with a floor of five percent.