NOTE 13: COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies Disclosure [Text Block]

NOTE 13: COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, we are involved in legal proceedings arising in the normal course of business. As of the date of this Report, we are not currently involved in any material actual or pending legal proceedings.

Operating Leases

We lease certain offices, facilities, equipment and vehicles under non-cancellable operating and capital leases expiring at various dates through 2016.

Letters of Credit

Certain of our customers could require us to issue a standby letter of credit (“LC”) in the ordinary course of business to ensure performance under terms of a contract and with associated vendors and sub-contractors.  In the event of a performance default, the creditor could demand payment from the issuing bank for the amount of the LC. During the year ended December 31, 2009, we used the credit agreement with Whitney to issue an irrevocable transferable standby LC in the amount of $1,107.  This LC was issued with a commission rate of 2.4 percent per annum and expired on August 31, 2011.  This LC was renewed on September 1, 2011 in the amount of $1,107, but should have been issued in the amount of $592.  We are working with Whitney to obtain resolution to this issue.  Additionally, a new LC in the amount of $470 was issued to a customer in the ordinary course of business on October 19, 2011 for a period of 92 days at a commission rate of 1.5 percent per annum.