Long-Term Debt

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

Note 5-- Long-Term Debt

Long-term debt consists of the following:	March 31		December 31
	2013		2012
Term loan	$	2,706,377	$	2,807,298
Obligation for purchase of distributorship, as modified		112,109		223,645
		2,818,486		3,030,943
Less current maturities		520,627		629,631
	$	2,297,859	$	2,401,312

Originating in September 2012 with its primary lender, the term loan is for a period of thirty-eight months with interest accruing at a floating interest rate based on the 30-day LIBOR plus 2%. At March 31, 2013, the term loan's interest rate was 2.2037%. Monthly principal and interest are based on approximately a seven-year amortization. The aggregate outstanding balance of principal and interest is due and payable on November 30, 2015. The Company also has a $5 million revolving loan agreement with its primary lender. There have not been any revolver borrowing in 2013.

The term loan agreement and the revolving line of credit agreement are secured by all tangible and intangible assets of the Company and also by a mortgage on the real estate of the Company's headquarters. These agreements also include loan covenants requiring the Company to maintain net tangible worth of not less than $11 million, and that borrowings under the agreements shall not exceed EBITDA by a ratio of 2.5 to 1. At March 31, 2013, the Company was in compliance with its loan covenants.

The Company's remaining obligation for purchase of a distributorship requires payments of principal and interest of $37,500 per month through June 2013.