Line of Credit

9 Months Ended

Sep. 30, 2013

Long-Term Debt and Line of Credit [Abstract]

LINE OF CREDIT

(4) LINE OF CREDIT

In July 2013, we refinanced our $100,000 line of credit, with interest due monthly at prime plus 1.8%, with a minimum rate of 4.75%, due in full on July 17, 2014, unless further extended. The line of credit is collateralized by our inventory, accounts receivable, equipment, general intangibles and fixtures. The credit line is cross collateralized with the our equipment and mortgage loans.  We owe $38,417 on this line of credit as of September 30, 2013. The line of credit is guaranteed by our subsidiaries Nanosonic Products, Inc., Cyclodextrin Technologies Development, Inc., and Sphingo Biotech, Inc., as well as by the personal guarantee of our chairman and chief executive officer.

Prior to July 2013, our line of credit was due on demand, with interest due monthly on outstanding balances at the higher of prime plus 2% or 6.5%. The credit line was cross collateralized with the equipment loan, was collateralized by substantially all our assets, including a mortgage on our High Springs property and was guaranteed by our chairman and chief executive officer. We owed $94,487 on this line of credit as of December 31, 2012.