Note 7 - Short-Term Borrowings

12 Months Ended

Dec. 31, 2011

Short-term Debt [Text Block]

7.     SHORT-TERM BORROWINGS

Terms and borrowings under our primary credit facility are summarized as follows:

Year ended December 31,
(in thousands)	2011			2010
Maximum outstanding (month-end)	$	--		$	--
Outstanding at year end		--			--
Interest rate at year end		6.5	%		6.5	%
Average interest rate		6.5	%		6.5	%

We established a working capital credit facility with a bank in October 2003 and have renewed the line annually with the most recent renewal effective June 30, 2011.  The revolving line of credit bears interest at the higher of prime rate plus one and one half percent or 6.5%, is secured by all of our assets and those of our principal subsidiaries, is guaranteed by our subsidiaries, and expires June 30, 2012. We may borrow an aggregate of 80 percent of qualified accounts receivable of our consolidated subsidiaries plus 50 percent of inventory, up to a maximum of $1,250,000.  At December 31, 2011, our borrowing base calculation resulted in availability of the full $1,250,000 under the line, of which we had drawn down zero. The terms of the loan contain typical covenants not to sell or transfer material assets, to create liens against assets, to merge with another entity, to change corporate structure or the nature of our business, to declare or pay dividends, or to redeem shares of common stock.  The loan agreement also contains covenants not to change the Chief Executive Officer and Chief Financial Officer of the Company or to make loans to or invest in new minority-owned companies, without first obtaining the consent of the financial institution in each case.  Furthermore, the terms of the loan contain a covenant requiring the company to maintain a minimum tangible net worth (as defined in the Loan Agreement) of various calculated amounts at the end of each calendar quarter.  At December 31, 2011, we were in compliance with all covenants.