Revolving Line of Credit

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Revolving Line of Credit

(7) Revolving Line of Credit and Lease Line

The Company has a $1 million revolving line of credit (“LOC”) and a $1.25 million equipment finance facility (“Lease Line”) with Sovereign Bank which expires 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 December 31, 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 December 31, 2011 there were no borrowings under this LOC. At December 31, 2011, the Company had capital lease obligations outstanding totaling $408,242 related to equipment financed by the Lease Line and $841,758 available remaining on the Lease line (see Note 4).