Note 8 - Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

8.  Debt

Long-term debt obligations consist of (dollars in thousands):

	September 30, 2013			December 31, 2012
Third party debt	$	1,996		$	-
Debt obligations maturing within one year		(751	)		-
Long-term obligations (less current portion)	$	1,245		$	-

In April 2013, we purchased excimer lasers for all of our full-service vision centers for $2.3 million. We had previously leased these lasers through a vendor financed transaction. In July 2013 we purchased an additional excimer laser for a licensee center. The terms of the financing provide for monthly payments over a 36-month term at a fixed interest rate of 3.5%.

The financing agreement does not contain any financial covenants and is secured by the excimer lasers. The estimated fair value of our debt obligations is $1.9 million based on the present value of the underlying cash flows discounted at our incremental borrowing rate. Within the hierarchy of fair value measurements, this is a Level 3 fair value measurement. The financing agreement represents a significant financing activity which affected recognized assets and liabilities by $2.3 million, but did not result in any cash receipts within the nine-month period ending September 30, 2013.