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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2011
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

NOTE L – SUBSEQUENT EVENTS

 

Rosenthal Line of Credit / Refinancing

 

On February 28, 2012, we gave Rosenthal written notice of non-renewal as provided under the Financing Agreement, and as a result, the Financing Agreement will terminate on May 31, 2012.

 

The Company will be required to pay (in full) the balance on the Rosenthal Line of Credit upon the termination of the Financing Agreement on May 31, 2012. To that end, the Company has received a proposal from another financing company to pay off the Rosenthal Line of Credit and for future financing of the Company’s working capital requirements (the “Proposal”). The Proposal is for a line of credit of up to $1,000,000 at a rate of Prime plus 4.00% per annum. The line of credit would be secured primarily by the Company’s accounts receivable and inventory. The Company believes the terms of the new proposal are more favorable to the Company than the terms under the Rosenthal Financing Agreement. The Company is currently in the stage of due diligence. Although there can be no assurances that the Company will enter into a definitive agreement related to the Proposal, the Company believes it will be able to execute a new financing agreement prior to the Rosenthal Financing Agreement termination on May 31, 2012.