Long-Term Debt

3 Months Ended

Mar. 31, 2012

Long-Term Debt [Abstract]

Long-term Debt

10. Long-Term Debt

Since October 1998, the Company has maintained a credit facility with an entity controlled by one of its principal stockholders, Mr. H.T. Ardinger. Most recently, ViewCast.com, Inc., Osprey Technologies, Inc. and VideoWare, Inc. (jointly and severally, “the Borrower”) amended the terms and conditions of the loan and security agreement with the Ardinger Family Partnership, Ltd. on December 30, 2011, to be effective as of October 1, 2011. Under the amended terms any amounts outstanding of the primary principal amount and secondary principal amount mature December 31, 2014, subject to certain earlier payment conditions. The interest on the primary principal amount will accrue based on an interest rate per annum which is the greater of 5.0% or the effective prime rate plus 0.75% (5.00% as of December 31, 2011 and March 31, 2012, respectively). Interest on the secondary principal shall accrue based on the effective Applicable Federal Rate, as defined in the agreement, (1.27% and 0.19%) as of December 31, 2011 and March 31, 2012, respectively). The amendment defers the payment of the accrued interest on the unpaid primary and secondary principal amounts from October 1, 2011 through March 31, 2012. Beginning April 30, 2012, payment of such accrued interest will be paid in three approximately equal monthly payments. The amended terms call for interest accruing after March 31, 2012 to be paid monthly; and beginning July 31, 2012, minimum monthly principal payments of $21,422, in addition to the monthly interest payments. Accrued interest was $27,906 and $55,813 at December 31, 2011 and March 31, 2012, respectively. The amended note agreement is secured by all the assets of the Borrower.

The Company’s long-term debt consisted of:

	December 31, 2011			March 31, 2012
				(Unaudited)
Outstanding Primary Principal Amount	$	1,078,621		$	1,078,621
Outstanding Secondary Principal Amount		4,591,361			4,591,361
Other debt		75,143			63,526
Total long-term debt		5,745,125			5,733,508
Less current maturities		(171,525	)		(234,641	)
Total long-term debt less current maturities	$	5,573,600		$	5,498,867

Other debt consists of capital leases for equipment.