XML 14 R12.htm IDEA: XBRL DOCUMENT v2.3.0.15
Line of Credit and Equipment Lease Facility Agreements
3 Months Ended
Oct. 01, 2011
Notes to Financial Statements 
Line of Credit and Equipment Lease Facility Agreements(7) Line of Credit and Equipment Lease Facility Agreements
The Company has a $1 million revolving line of credit (“LOC”) and a $1.25 million equipment finance facility(“Lease Line”) with Sovereign Bank through maturity in May 2012. The LOC is secured by the accounts receivable and other assets of the Company, has an interest rate of prime plus one percent (1%) and a one-year term. Under the terms of the agreement, the Company is required to maintain its operating accounts with Sovereign Bank. The LOC and the Lease Line are cross defaulted and cross collateralized. The Company is also subject to certain financial covenants within the terms of the LOC that require the Company to maintain a targeted rolling four quarter debt service coverage ratio as well as targeted debt to equity and current ratios. At October 1, 2011, the Company was in compliance with these covenants. The Company believes but can give no assurance that it could obtain similar lease facilities from other lenders. At October 1, 2011 there were no borrowings under this LOC. At October 1, 2011, the Company had capital lease obligations outstanding totaling $231,618 related to equipment financed by the Lease Line and $1,018,382 available remaining on the Lease line.