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Bank Line of Credit
12 Months Ended
Dec. 31, 2012
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

Note 10 – Bank Line of Credit

 

Bank Line of Credit - 2011

 

During November 2011, DCT amended its existing $2,000,000 line of credit (“LOC”) to increase the available borrowings from $2,000,000 to $3,000,000 and extended the maturity date to November 15, 2012. The borrowing base remained unchanged at 80% of eligible accounts receivable (as defined in the LOC agreement). The annual interest rate remained unchanged at prime plus 1.0%. Upon certain events of default (as defined in the LOC agreement), the default variable interest rate increases five percentage points above the interest rate applicable immediately prior to the default. Additionally, the lender has the right to declare all of the amounts due under the LOC immediately due and payable upon an event of default.

 

In connection with the amendment, DCT paid the lender a loan modification fee of $8,000, which was recorded as deferred financing costs and amortized over the life of the loan to interest expense.

 

Bank Line of Credit - 2012

 

During November 2012, DCT amended its LOC (“Amended LOC”), extending the maturity date to November 15, 2013 and expanding DCT’s borrowing base.  Previously, the borrowing base formula allowed accounts receivable from individual customers up to 25% of total accounts receivable.  The Amended LOC expands the borrowing base by including certain customer balances in excess of 25% of the total accounts receivable. All other significant terms and conditions remain unchanged.

 

In connection with the amendment, DCT paid the lender a loan modification fee of $8,000, which was recorded as deferred financing costs and is being amortized over the life of the loan to interest expense.

 

As of December 31, 2012, DCT was in compliance with all 2012 Amended LOC debt covenants and had unused borrowing capacity of $1,746,000.