Quarterly report pursuant to sections 13 or 15(d)

NOTE 11 - SUBSEQUENT EVENTS

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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.