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Working Capital
9 Months Ended
Jun. 30, 2012
Working Capital [Abstract]  
Working Capital

5.        Working Capital

 

On February 25, 2011, the Company entered into an asset-based line of credit with Summit Financial Resources LP related to its accounts receivable. The Company may borrow up to 80% of domestic accounts receivable at a daily interest rate of prime plus 2%, plus a monthly management fee of 1.1% of the borrowed accounts. As of June 30, 2012, the Company owes $160,200 on the line of credit. Interest expense on these borrowings was $3,100 and $10,800 for the quarter and nine months ended June 30, 2012, respectively.

 

During the quarter and nine months ended June 30, 2012, the Company obtained working capital bridge loans from its president aggregating $90,000 and $639,000, respectively. These loans are non-interest bearing and due on demand, and are in addition to other outstanding loans that the Company has obtained from its president.