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Line of Credit
12 Months Ended
Aug. 31, 2012
Line Of Credit Facility [Abstract]  
Debt Disclosure [Text Block]

Note 5. Line of Credit

 

The Company has a revolving credit agreement with Community Bank, which currently provides for borrowings of up to $10.0 million and bears interest at either the 30, 60 or 90 day London Inter-Bank Offered Rate (“LIBOR”) (the 90 day LIBOR at August 31, 2012 and 2011 was 0.43% and 0.33%, respectively) plus 1.75% and/or the bank’s reference rate (3.25% at August 31, 2012 and 2011). Borrowings are secured by substantially all assets of the Company’s Distribution Operations and are guaranteed by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder Glen F. Ceiley. The agreement, as amended in March 2012, expires in March 2014. The amount outstanding under this line of credit as of August 31, 2012 and 2011 was $7,450,000 and $8,500,000, respectively. Availability under the line of credit was $2,550,000 and $1,500,000 at August 31, 2012 and 2011, respectively.