Note 8 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Text Block]

Note 8 – Commitments and Contingencies

In May 2012, the Company renewed its line of credit agreement with Sun National Bank.  The borrowing capacity remained unchanged at $200,000.  The facility matures on May 31, 2013 and accrues interest at a variable rate equal to the bank’s prime rate plus 300 basis points with a minimum interest rate of 5.25% per annum.  Principal borrowings may be prepaid at any time without penalty, and the facility is secured by substantially all of the Company’s assets. Borrowings under the facility are limited to a percentage of aggregate outstanding receivables that are due within 90 days.  The facility contains customary affirmative and negative covenants and a net worth financial covenant.  As of September 30, 2012 and December 31 2011, there were no amounts outstanding under the facility.

In August 2012, the Company renewed the lease for its facility at 8076 114th Ave N., Largo, Florida 33777 which supports production of the ADEPT product line and quality assurance, field support, and life cycle management.