Secured Lines of Credit

9 Months Ended

Sep. 30, 2011

Secured Lines Of Credit [Abstract]

Secured Lines Of Credit [Text Block]

4.           Secured Lines of Credit

In June 2011, Cole Taylor provided a line of credit for a period up to June 2016 drawable up to (a) 85% of eligible receivables, plus (b) 60% of eligible inventory (consisting of finished products or raw materials) or $1,500,000, whichever is lower, plus (c) 40% of eligible work-in-progress inventory or $250,000, whichever is lower, minus (d) certain reserves. The facility is secured by substantially all of the assets of Releta and MBC. We may choose, subject to certain contingencies, an interest rate of either prime plus 1% or LIBOR plus 3.5%. The amount outstanding on this line of credit as of September 30, 2011 was approximately $229,500.

Included in our balance sheet as accounts receivable at September 30, 2011, are account balances totaling $2,455,400 of accounts receivable and $2,196,900 of inventory collateralized to Cole Taylor under this facility.

On April 26, 2005, Royal Bank of Scotland Commercial Services Limited ("RBS") provided an invoice discounting facility to KBEL for a maximum amount of £1,750,000 based on 80% prepayment against qualified accounts receivable related to KBEL's UK customers.  The initial term of the facility was for a one year period after which time the facility could be terminated by either party by providing the other party with six months notice.  The facility carries an interest rate of 1.38% above the RBS base rate and a service charge of 0.10% of each invoice discounted.  The amount outstanding on this line of credit as of September 30, 2011 was approximately $1,197,400.