XML 30 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
Line of Credit and Long Term Debt (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Total $ 5,609,634 $ 6,021,473
Less: current portion (910,902) (1,102,741)
Long-term debt, net of current portion 4,698,732 4,918,732
Cardinal Bank Mortgage Dated December 17 2010 [Member]
   
Total 496,071 [1] 499,938 [1]
Cardinal Bank Term Note Dated December 31 2011 [Member]
   
Total 3,083,563 [2] 3,271,535 [2]
Ags Promissory Note One [Member]
   
Total 1,030,000 [3] 1,250,000 [3]
Ags Promissory Note Two [Member]
   
Total $ 1,000,000 [4] $ 1,000,000 [4]
[1] On December 17, 2010, the Company entered into a real estate purchase agreement to acquire iSYS's call center facility in Columbus, Ohio for approximately $677,000. In connection with the real estate purchase agreement the Company entered into a $528,000 ten-year mortgage with Cardinal Bank to fund the unpaid portion of the purchase price. The mortgage loan bears interest at 6.0% with monthly principal and interest payments of approximately $3,800, and matures on December 17, 2020. The mortgage loan principal and interest payments are based on a twenty-year amortization with the unpaid balance due at maturity. The mortgage loan is secured by the real estate.
[2] On December 31, 2011, the Company entered into a $4,000,000 5-year term note with Cardinal Bank to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. ("AGS") dated December 30, 2011. The term note bears interest at 4.50% with monthly principal and interest payments of approximately $74,694, and matures on December 30, 2016. The term note is secured under a corporate security agreement.
[3] On December 31, 2011, the Company entered into a subordinated 3-year term contingent promissory note ("contingent obligation") with a face value of $3.0 million with Avalon Global Solutions, Inc. (AGS) to fund a portion of the purchase price paid in connection with the asset purchase agreement dated December 30, 2011. The Company carries this contingent obligation at fair value on the consolidated balance sheet at approximately $1.25 million at December 31, 2012 as described in Note 3. The contingent obligation bears interest at 3.0%, with a fair value of remaining contingent annual principal payments of approximately $625,000 and $625,000 in 2014 and 2015, respectively, and matures on April 15, 2015. This contingent obligation is subordinated to the senior bank financing.
[4] On December 31, 2011, the Company entered into a $1.0 million subordinated 3-year term non-contingent note ("Term note" or "non-contingent obligation") with Avalon Global Solutions, Inc. to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. dated December 30, 2011. The term note bears interest at 3.0% with estimated annual principal and interest payments of $323,530, $333,236 and $343,233 in 2013, 2014 and 2015, respectively, and matures on April 15, 2015. The term notes are subordinated to the senior bank financing.