We continue to manage our billing and client collection processes to reduce past due receivables to the extent practicable. We believe that our allowance for bad debt is adequate to cover any potential non-payment by our customers. We are focusing our efforts to collect accounts receivable from clients whose payment practices are slower or whose payment terms are longer compared to the Company's average payment terms.At August 15, 2012, the Company had unrestricted cash on hand totaling approximately $0.7 million, and availability under the PNC Credit Facility totaled approximately $1.3 million, subject to certain restrictions. In addition, at that date, one $9.1 million letter of credit was outstanding under the Ex-Im Bank Facility and collateralized by $2.3 million in cash. As a result of the defaults under the PNC Credit Facility and the Ex-Im Bank Facility described in our quarterly report on Form 10-Q for the second quarter ended June 30, 2012 filed with the SEC, additional borrowings under these facilities may be limited or restricted. As a result, the Company's liquidity requirements currently depends primarily on cash flow from operations and timely collection of outstanding invoices.
ENGlobal Reports Second Quarter Results
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts