Note 8. Note Payable	9 Months Ended
Sep. 30, 2012
Debt Disclosure [Text Block]	8. Note Payable On August 31, 2012, IGI Laboratories, Inc. and its subsidiaries, Igen, Inc. and IGI Labs, Inc. (called collectively for purposes of this Note 8, the “ Company ”), entered into a Loan and Security Agreement (the “ Loan and Security Agreement ”) with Square 1 Bank (the “ Lender ”) pursuant to which the Lender agreed to extend credit facilities to the Company (the “ Financing ”). The Company drew down $1,000,000 in principal amount on August 31, 2012. In connection with this financing the company incurred and recorded debt issuance costs in the amount of $114,000, which will be amortized over the remaining life of the loan, 42 months. To secure payment of the amounts financed under the Loan and Security Agreement, the Company has granted to the Lender a continuing security interest in and against, generally, all of its tangible and intangible assets, except intellectual property. Under the Loan and Security Agreement, the Company can request revolving loan advances under (a) the Formula Revolving Line and (b) the Non-Formula Revolving Line, and term loan advances under the term loans (each as further described in the Loan and Security Agreement disclosed in a Current Report on Form 8-K as Exhibit 10.1 filed with the Securities and Exchange Commission on September 6, 2012). The aggregate total borrowings under the facilities cannot exceed the total borrowing limit of $3,000,000 at any one time outstanding. Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 1.9% above the prime rate then in effect, and (B) 5.65%. Non-Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 2.15% above the prime rate then in effect, and (B) 5.9%. Term loan advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 2.4% above the prime rate then in effect, and (B) 6.15%. The term of the Formula Revolving Line and the Non-Formula Revolving Line is one year from the date of the Loan and Security Agreement and can be extended by mutual agreement of the parties. The term of the term loans is 42 months from the date of the Loan and Security Agreement, but term loan advances are available to the Company only until February 28, 2014. The Company must at all times maintain a liquidity ratio of a minimum of 1.25, defined as unrestricted cash at the lender plus approved accounts receivable borrowing base divided by all debt outstanding to the lender. The minimum liquidity ratio can be reduced to 1.0 if the Company maintains certain three month minimum revenue thresholds, agreed upon by the lender. At September 30, 2012, the Company was in compliance with all of its covenants with the lender. In connection with the Financing, the Company paid in full its existing credit facility with Amzak Capital Management, LLC (see Note 9 below) and executed a Release and Termination Note and Credit Agreement with Amzak Capital Management, LLC to release the Company from any future obligations under the agreement. The complete statement of the parties’ rights and obligations under the Loan and Security Agreement is qualified in its entirety by reference to the terms and conditions of such document which is filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 6, 2012.

Note 8. Note Payable

9 Months Ended

Sep. 30, 2012

8. Note Payable

On August 31, 2012, IGI Laboratories, Inc. and its subsidiaries, Igen, Inc. and IGI Labs, Inc. (called collectively for purposes of this Note 8, the “ Company ”), entered into a Loan and Security Agreement (the “ Loan and Security Agreement ”) with Square 1 Bank (the “ Lender ”) pursuant to which the Lender agreed to extend credit facilities to the Company (the “ Financing ”). The Company drew down $1,000,000 in principal amount on August 31, 2012. In connection with this financing the company incurred and recorded debt issuance costs in the amount of $114,000, which will be amortized over the remaining life of the loan, 42 months.

To secure payment of the amounts financed under the Loan and Security Agreement, the Company has granted to the Lender a continuing security interest in and against, generally, all of its tangible and intangible assets, except intellectual property.

Under the Loan and Security Agreement, the Company can request revolving loan advances under (a) the Formula Revolving Line and (b) the Non-Formula Revolving Line, and term loan advances under the term loans (each as further described in the Loan and Security Agreement disclosed in a Current Report on Form 8-K as Exhibit 10.1 filed with the Securities and Exchange Commission on September 6, 2012). The aggregate total borrowings under the facilities cannot exceed the total borrowing limit of $3,000,000 at any one time outstanding. Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 1.9% above the prime rate then in effect, and (B) 5.65%. Non-Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 2.15% above the prime rate then in effect, and (B) 5.9%. Term loan advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 2.4% above the prime rate then in effect, and (B) 6.15%.

The term of the Formula Revolving Line and the Non-Formula Revolving Line is one year from the date of the Loan and Security Agreement and can be extended by mutual agreement of the parties. The term of the term loans is 42 months from the date of the Loan and Security Agreement, but term loan advances are available to the Company only until February 28, 2014.

The Company must at all times maintain a liquidity ratio of a minimum of 1.25, defined as unrestricted cash at the lender plus approved accounts receivable borrowing base divided by all debt outstanding to the lender. The minimum liquidity ratio can be reduced to 1.0 if the Company maintains certain three month minimum revenue thresholds, agreed upon by the lender. At September 30, 2012, the Company was in compliance with all of its covenants with the lender.

In connection with the Financing, the Company paid in full its existing credit facility with Amzak Capital Management, LLC (see Note 9 below) and executed a Release and Termination Note and Credit Agreement with Amzak Capital Management, LLC to release the Company from any future obligations under the agreement.

The complete statement of the parties’ rights and obligations under the Loan and Security Agreement is qualified in its entirety by reference to the terms and conditions of such document which is filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 6, 2012.

- Definition

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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