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Revolving Credit Facility

9 Months Ended

Sep. 30, 2012

Revolving Credit Facility [Abstract]

Revolving Credit Facility

6.	Revolving Credit Facility

In September 2010, the Company entered into a revolving credit facility of up to $6.0 million with a financial institution. As of September 30, 2012 and December 31, 2011, there was no balance outstanding on the credit facility. The credit facility originally provided for an expiration on October 15, 2012, which has since been extended through December 17, 2012. The Company expects to enter into a one-year extension to the credit facility on substantially similar terms prior to its expiration. The credit facility, is secured by the assets of the Company, and contains a restrictive covenant that requires the Company to maintain a minimum cash and cash equivalents balance of $3.0 million. The terms of this agreement requires payment of an unused line fee of 0.25% per quarter of the unused portion and bears interest at LIBOR plus 2.75%. As of September 30, 2012 and December 31, 2011, the Company was compliant with the covenant of the credit facility.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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