Derivative Instruments; Fair Value

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Fair Value [Text Block]

Note 9 - Derivative Instruments; Fair Value

The following tables represents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

	Amount as of
Description	6/30/2015		Level 1		Level 2		Level 3
Warrant Liability	$	506,000		-	$	506,000
	$	506,000	$	-	$	506,000	$	-

	Amount as of
Description	12/31/2014		Level 1		Level 2		Level 3
Warrant Liability	$	525,000		-	$	525,000		-
	$	525,000			$	525,000

The Company is exposed to certain market risks including the effect of changes in interest rates. The Company uses derivative instruments to manage financial exposures that occur in the normal course of business. It does not hold or issue derivatives for speculative trading purposes. The Company is exposed to non-performance risk from the counterparties in its derivative instruments. This risk would be limited to any unrealized gains on current positions. To help mitigate this risk, the Company transacts only with counterparties that are rated as investment grade or higher and all counterparties are monitored on a continuous basis. The fair value of the Company’s derivatives reflects this credit risk.

On July 1, 2011, the Company entered into a swap agreement with BMO Capital Markets with respect to $6,780,000 of our loan balances with BMO Harris Bank N.A. This swap agreement limits the Company’s exposure to interest rate fluctuations on the Company’s floating rate loans. The swap agreement has the effect of fixing the interest rate on the loan balances covered by the swap at 4.65% per annum. The swap agreement is a derivative financial instrument and we determine and record the fair market value of the swap agreement each quarter. The value is recorded on the balance sheet of the Company and the amount of the unrealized gain or loss for each period is recorded as interest income or expense. The swap agreement has expired as of September 30, 2014.

The Effect of Derivative Instruments on the Statement of Financial Performance

	For the three months ended
	June 30, 2015			June 30, 2014
	Location of	Amount of		Location of	Amount of
	Gain (Loss)	Gain (Loss)		Gain (Loss)	Gain (Loss)
	Recognized	Recognized		Recognized in	Recognized in
Derivatives not Designated as Hedging	in Income on	in Income on		Income on	Income on
Instruments under Statement 133	Derivative	Derivative		Derivative	Derivative
Interest Rate Contracts	Interest Expense	$	-	Interest Expense	$	1,000
Interest on fixed/variable rate variances		$	-		$	21,000

The Effect of Derivative Instruments on the Statement of Financial Performance

	For the six months ended
	June 30, 2015			June 30, 2014
	Location of	Amount of		Location of	Amount of
	Gain (Loss)	Gain (Loss)		Gain (Loss)	Gain (Loss)
	Recognized	Recognized		Recognized in	Recognized in
Derivatives not Designated as Hedging	in Income on	in Income on		Income on	Income on
Instruments under Statement 133	Derivative	Derivative		Derivative	Derivative
Interest Rate Contracts	Interest Expense	$	-	Interest Expense	$	3,000
Interest on fixed/variable rate variances		$	-		$	42,000