| | Revolving
Credit Facility—The Company maintains a long-term revolving credit
facility (the “Facility”) with a bank, which enables the Company to borrow funds
at variable interest rates. The Facility was voluntarily reduced to $500,000 in
August 2002. The Facility expires on June 30, 2006. There were no outstanding
borrowings on the Facility at December 31, 2005 and 2004. Under the terms of the
Facility, among other things, the Company is required to maintain a ratio of total
liabilities to tangible net worth not to exceed 2.0 to 1.0, maintain a ratio of
current assets to current liabilities of at least 1.5 to 1.0, maintain minimum
working capital of $25,000,000, and is restricted from paying dividends to shareholders.
For the years ended December 31, 2005 and 2004, management of the Company believes
the Company was in compliance with all debt covenants. The Facility is collateralized
by trade receivables, inventories, property and equipment, and intangible assets. Long-term
Debt—Long-term debt consisted of the following at December 31, 2005
and 2004 (in thousands): 
Scheduled
maturities of long-term debt at December 31, 2005 were as follows (in thousands): 
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