XML 39 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Line Of Credit
12 Months Ended
Dec. 31, 2011
Line Of Credit [Abstract]  
Line Of Credit

7. LINE OF CREDIT

The Company has a $3,000,000 line of credit with a commercial bank. The line of credit is collateralized by substantially all of the assets of the Company and expires September 5, 2013. Under the terms of the line of credit, the Company is required to maintain certain financial covenants. Interest is charged at the bank's prime rate and is payable monthly. There was no balance outstanding at December 31, 2011 and 2010.

The Company frequently bids on and enters into international contracts that require bid and performance bonds. At December 31, 2011 and 2010, the commercial bank had issued standby letters of credit on behalf of the Company in the amount of $898,013 and $1,583,000, respectively that served as either bid or performance bonds. The amount available under the line of credit was reduced by this amount.