XML 13 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
2. Notes Payable to Bank
9 Months Ended
Sep. 30, 2012
Notes Payable To Bank  
2. Notes Payable to Bank

On May 15, 2012, the Company entered into a Credit Agreement with BMO Harris Bank, N.A. for a term loan in the amount of $5.0 million which is repayable in 48 equal monthly principal installments of $104,000 plus interest commencing on June 15, 2012 with a final payment due on May 15, 2016.    Interest on the unpaid principal balance is payable at a rate per annum of LIBOR plus 4%.  The proceeds from the term loan, net of certain fees and expenses associated with obtaining the term loan, were used to repay existing indebtedness to Wells Fargo Bank, N.A. and to an officer of the Company.  The Company’s obligations under the term loan are secured by the grant of a security interest in essentially all assets of the Company and a personal guaranty of an officer of up to $1.2 million of the term loan. The Credit Agreement contains certain restrictions apply such as a prohibition on the payment of dividends, as defined in the Credit Agreement.