NOTE 11 - SUBSEQUENT EVENTS
|9 Months Ended|
Sep. 30, 2011
|Subsequent Events [Text Block]||
NOTE 11 – SUBSEQUENT EVENTS
Line of Credit
In October 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 $750,000. Interest on outstanding balances is payable daily at an interest rate that is two and three quarters percentage points (2.75%) above the Prime Rate. The Company’s interest rate was 6% at September 30, 2011. The Company paid a $5,000 documentation fee for this loan. The line was collateralized by substantially all of the assets of the Company and is guaranteed by the Company’s CEO. 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.
Repayment of Promissory Notes
On November 4, 2011, the Company paid off the Promissory Notes and accrued interest by borrowing against the Line of Credit and cash from operations.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.