Note 5. Line of Credit

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

Line of Credit

Effective April 30, 2013, the Company renewed its Line of Credit and increased the amount of funds available to 75% of eligible accounts receivable, as defined in the line of credit agreement, up to a maximum of $2,000,000. The interest rate was also reduced to LIBOR plus 3.5%, and therefore was 3.67% at December 31, 2013.   The Company borrowed $500,000 during the year ended December 31, 2013 to partially finance the acquisition of PIR.  All borrowings, plus the balance from the prior year, were repaid during the year ended December 31, 2013, and therefore the Company did now owe any amounts on the Line of Credit at December 31, 2013. As of December 31, 2013, the Company had approximately $987,000 remaining for future borrowings under the line of credit based on the calculation of eligible accounts receivable.  On November 5, 2012, the Company renewed their working capital line of credit (the “Line of Credit”), and increased the amount available from $450,000 to $500,000.  The Line of Credit had an interest rate equal to the 30 day LIBOR rate plus 4.5%. During the year ended December 31, 2012, the Company borrowed $275,000 under the Line of Credit as part of the purchase of the customer list from SECCS, and repaid $125,000 during the year.  Therefore, the amount owed on the Line of Credit as of December 31, 2012 was $150,000.