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Revolving Line of Credit and Related Interest
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract]  
Revolving Line of Credit and Related Interest

Note 6- Revolving Line of Credit and Related Interest

 

The Company entered into a Credit Agreement with Colorado Business Bank West of Denver, Colorado on July 16, 2012, which was renewed effective October 16, 2013. Borrowings under this agreement are used to provide ongoing working capital and for other general corporate purposes of the Company.

 

The agreement provides a revolving commitment to the Company of $1,500,000. Amounts outstanding under the agreement are reflected in a promissory note with a principal balance of $1,500,000 and maturity date of November 16, 2014 (the “Promissory Note”). The principal balance on the Promissory Note will bear interest at the one month USD LIBOR rate measured not more often than once per month (the “Index”). Interest on any unpaid balance under the promissory note will bear interest at the Index plus 3.750% with a minimum interest rate of 4.000% per annum.

 

The outstanding balance on the revolving line of credit as of March 31, 2014 and December 31, 2013 was $1,220,655.