NOTE 5 - NOTE PAYABLE - REVOLVER

3 Months Ended

Mar. 31, 2012

Short-term Debt [Text Block]

NOTE 5 – NOTE PAYABLE - REVOLVER

As amended in February 2011, the Company entered into an agreement with a financing company providing a revolving line of credit. Under the agreement, the Company assigned certain accounts receivable, including purchased accounts receivable, to the financing company in return for a line of credit of $6,500,000. The agreement is automatically renewable on the anniversary unless cancelled by the parties.  Fees under the agreement consist of a commitment fee of $65,000, a service fee of 0.825% per month, and interest at prime plus 2% per annum.  

All borrowings under this revolving line of credit are collateralized by the accounts receivable and substantially all other assets of the Company.