5.	LINE OF CREDIT

The Company has a line of credit with a bank with a borrowing base of $11,000,000 at December 31, 2013 and 2012, respectively. The amount outstanding under this line of credit was $6,740,000 as of December 31, 2013 and 2012. The agreement requires monthly interest-only payments until maturity on October 18, 2016. The interest rate is based on a LIBOR or Prime option. The Prime option provides for the interest rate to be prime plus a margin ranging between 1.75% and 2.25% and the LIBOR option to be the 3-month LIBOR rate plus a margin ranging between 2.75% and 3.25%, both depending on the borrowing base usage. Currently, we have elected the LIBOR interest rate option in which our interest rate was approximately 3.50% as of December 31, 2013 and 2012, respectively. The commitment fee is .50% of the unused borrowing base. The line of credit provides for certain financial covenants and ratios which include a current ratio, leverage ratio, and interest coverage ratio requirements. We were in compliance with our covenants as of December 31, 2013 and 2012. The credit line was amended on March 19, 2014 on the substantially identical terms, except that the requirement for a personal guarantee by the President and CEO was removed, and extended the maturity date to October 18, 2016.