XML 30 R16.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Line of Credit and Long-Term Debt
9 Months Ended
Jun. 30, 2011
Line of Credit and Long-Term Debt [Abstract]  
Line of Credit and Long-Term Debt
Note K — Line of Credit and Long-Term Debt
     In June 2006, in conjunction with an asset purchase agreement with Coloplast A/S, the Company entered into an unsecured loan note deed with Coloplast with an outstanding principal amount of $5,340,000. The promissory note was non-interest bearing and payable in five equal annual installments of $1,068,000 payable annually on June 2. The Company discounted the note at 6.90% which reflected the Company’s cost of borrowing at the date of the purchase agreement and the discount was amortized over the life of the note. The final payment of $1,068,000 was paid in May 2011.
     In December 2010, the Company entered into a credit facility with RBC Wealth Management (“RBC”). The credit facility consists of a revolving line of credit of up to $25,000,000 with interest accruing monthly at a variable rate currently at 1.375%. In conjunction with the closing of the Laprolan acquisition described under Note B, on April 7, 2011 the Company drew down $15,057,775 from its credit line with RBC. As of June 30, 2011, the Company had an outstanding balance under the revolving line of credit of $17,862,185.