Quarterly report pursuant to sections 13 or 15(d)

NOTE 6 - LINE OF CREDIT

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NOTE 6 - LINE OF CREDIT
3 Months Ended
Mar. 31, 2013
Debt Disclosure [Text Block]
NOTE 6 – LINE OF CREDIT

In October 2011 the Company negotiated a line of credit from a bank. The agreement included a borrowing base calculation tied to accounts receivable with a maximum availability of $750. Interest on outstanding balances is payable daily at an interest rate that is two and three quarter’s percentage points (2.75%) above the Prime Rate.  The Company’s interest rate was 6% as of March 31, 2013.   The line is collateralized by substantially all of the assets of the Company and is guaranteed by the Company’s Chief Executive Officer.  The credit facility required the Company to pay a monitoring fee of 0.315% of eligible collateral to be paid monthly. An annual facility fee equal to one percent (1%) of the Maximum Credit is assessed upon the initial funding, annually thereafter. The term of the agreement is for three years and expires in October 2014. At March 31, 2013, the Company was in compliance with the required financial covenants, the fixed charge ratio and debt to net worth.

As of March 31, 2013 and December 31, 2012 the outstanding balances open under this agreement were $-0- and $179. As of March 31, 2013, the availability under this line was $516.