SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

12. SUBSEQUENT EVENTS

On May 2, 2012, the Company entered into an agreement with Sterling National Bank establishing a secured revolving credit line in the amount of up to $3,500,000, at an interest rate equal to 2% in excess of the Wall Street Journal prime rate, but in no event less than 6%, per annum. Pursuant to a pledge and security agreement, the line of credit is secured by certain of the Company’s commercial loans and is guaranteed by Assaf Ran, the Company’s CEO.

The Company repaid in full the short-term loans from Mr. Ran, our CEO, with the proceeds of the line of credit. The Company also intends to repay other short-term loans with higher interest rates in the near future.