Note 10 - Revolving Credit Facility	12 Months Ended
Oct. 01, 2011
Short-term Debt [Text Block]	10. REVOLVING CREDIT FACILITY We have a revolving credit facility from a bank, which we amended and restated on December 9, 2011 in connection with our acquisition of the assets of MC Healthcare. The maximum principal amount we can borrow at any one time under the loan agreement is $13,000,000 until March 30, 2012, at which time the maximum principal amount is reduced to $10,000,000. The maturity date is April 30, 2015. The agreement is unsecured and accrues interest at a variable rate equal to 30-day LIBOR plus a margin ranging from 85 to 165 basis points depending on our leverage ratio (as defined in the credit agreement). The current margin is 110 basis points. The margin in effect during fiscal 2009, the last time we incurred interest, was 85 basis points. The interest rate, including the margin, at November 20, 2008, the last date at which interest expense was incurred, was 3.70%. Interest-only payments are required monthly. There are no unused line fees associated with the revolver until April 1, 2012 at which time a 25-basis-point annual fee, payable quarterly, on any unused availability above $5,000,000 is due. We have pledged to grant the bank a security interest in our accounts, instruments, and chattel paper upon its request in the event of a default as defined in the credit agreement. Our obligations under the credit agreement are guaranteed by our new wholly-owned subsidiary, Span Medical Products Canada Inc. The credit facility includes financial covenants relating to tangible net worth and leverage ratios, and restricts dividends and stock repurchases during any fiscal year to an aggregate amount of no more than 50% of the sum of (i) our income from continuing operations for that fiscal year plus (ii) the absolute value of our aggregate after-tax, non-cash and extraordinary losses for that fiscal year, if any. As an exception to the restriction noted above, we may pay a regular quarterly dividend in an amount no greater than the previous quarter’s regular dividend so long as we remain in compliance with the financial covenants after giving effect to the payment of the dividend. Also, there is no restriction on our new subsidiary’s ability to pay dividends or make distributions to us. Violation of loan covenants could result in acceleration of the term of the credit agreement. We incurred no interest expense in 2011 and 2010 and paid interest expense of approximately $4,000 in 2009. On December 9, 2011, we borrowed $6.5 million to finance a portion of the purchase price for the assets of MC Healthcare.

Note 10 - Revolving Credit Facility

12 Months Ended

Oct. 01, 2011

10. REVOLVING CREDIT FACILITY

We have a revolving credit facility from a bank, which we amended and restated on December 9, 2011 in connection with our acquisition of the assets of MC Healthcare. The maximum principal amount we can borrow at any one time under the loan agreement is $13,000,000 until March 30, 2012, at which time the maximum principal amount is reduced to $10,000,000. The maturity date is April 30, 2015. The agreement is unsecured and accrues interest at a variable rate equal to 30-day LIBOR plus a margin ranging from 85 to 165 basis points depending on our leverage ratio (as defined in the credit agreement). The current margin is 110 basis points. The margin in effect during fiscal 2009, the last time we incurred interest, was 85 basis points. The interest rate, including the margin, at November 20, 2008, the last date at which interest expense was incurred, was 3.70%. Interest-only payments are required monthly. There are no unused line fees associated with the revolver until April 1, 2012 at which time a 25-basis-point annual fee, payable quarterly, on any unused availability above $5,000,000 is due. We have pledged to grant the bank a security interest in our accounts, instruments, and chattel paper upon its request in the event of a default as defined in the credit agreement. Our obligations under the credit agreement are guaranteed by our new wholly-owned subsidiary, Span Medical Products Canada Inc.

The credit facility includes financial covenants relating to tangible net worth and leverage ratios, and restricts dividends and stock repurchases during any fiscal year to an aggregate amount of no more than 50% of the sum of (i) our income from continuing operations for that fiscal year plus (ii) the absolute value of our aggregate after-tax, non-cash and extraordinary losses for that fiscal year, if any. As an exception to the restriction noted above, we may pay a regular quarterly dividend in an amount no greater than the previous quarter’s regular dividend so long as we remain in compliance with the financial covenants after giving effect to the payment of the dividend. Also, there is no restriction on our new subsidiary’s ability to pay dividends or make distributions to us. Violation of loan covenants could result in acceleration of the term of the credit agreement.

We incurred no interest expense in 2011 and 2010 and paid interest expense of approximately $4,000 in 2009. On December 9, 2011, we borrowed $6.5 million to finance a portion of the purchase price for the assets of MC Healthcare.

- Definition

The entire disclosure for short-term debt.

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