| Debt Disclosure [Text Block] |
| 7. |
LONG-TERM DEBT AND NOTES PAYABLE |
Long-term debt and notes payable are summarized as follows.
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March 31, |
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December 31, |
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| |
|
2012 |
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|
2011 |
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| $2,000,000 line of credit with a bank, interest at Wall Street Journal Prime +0.5% (minimum of 4.5%) payable monthly; due August 20, 2012; collateralized by a certificate of deposit owned by a shareholder; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt |
|
$ |
1,178,000 |
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|
$ |
1,165,000 |
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|
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| Note payable to a bank due in monthly installments of $1,739 including interest at Wall Street Journal Prime + 1% (minimum of 5.5%); remaining balance due August 10, 2013; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt |
|
|
241,115 |
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|
|
242,964 |
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| |
|
|
|
|
|
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| 18% convertible notes payable; interest payable quarterly; due on the six-month anniversary of the date issued which range from January 22-June 26, 2012; convertible under the same terms as the subsequent capital raised in connection with a public
offering of the Company's securities (currently approximately 908,000 shares) |
|
|
2,725,000 |
|
|
|
1,625,000 |
|
| |
|
|
4,144,115 |
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|
|
3,032,964 |
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| Notes payable and current portion of long-term debt |
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|
3,910,616 |
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|
|
2,796,855 |
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| Long-term debt, less current portion |
|
$ |
233,499 |
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|
$ |
236,109 |
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The Company pays the shareholder whose certificate of deposit is used as collateral on the $2,000,000 line of credit 1% of the outstanding balance on the line of credit monthly. In addition, the Company issued warrants to the shareholder, as described in Note 8.
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