Note 11 - Derivative Instrument

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 11 – Derivative Instrument

As of September 30, 2014, we had one foreign currency contract outstanding with a notional amount of 6.2 million Danish krone (DKK) or $1.0 million. The foreign currency contract was purchased to economically hedge the foreign currency fluctuation from the remeasurement of the third party seller financed note payable (Seller Note) which is denominated in DKK (Note 8). The term of the foreign currency contract, and its settlement dates, coincide with the maturity of the Seller Note which is April 2, 2015. The fair value of the contract resulted in an asset of approximately $11,000 at September 30, 2014, as compared to approximately $183,000 at December 31, 2013. The decrease in the fair value of the contract totaling approximately $79,000 for the three-month period ended September 30, 2014 and the decrease of $172,000 for the nine-month period ended September 30, 2014 were recognized in other expense in the condensed consolidated statements of income. Substantially all of this expense is offset by the re-measurement of the Seller Note.