Secured Lines of Credit

9 Months Ended

Sep. 30, 2013

Line of Credit Facility [Abstract]

Secured Lines of Credit

4. Secured Lines of Credit

In June 2011, Cole Taylor provided a line of credit, from which may be drawn up to 85% of eligible receivables and 60% of eligible inventory during the period ending June 2016. The borrowings are collateralized, with recourse, by MBC’s and Releta’s trade receivables and inventory located in the US. This facility carries interest at a rate of prime plus 1% and is secured by substantially all of the assets of Releta and MBC. The amount outstanding on this line of credit as of September 30, 2013 was $1,771,200. We have included as accounts receivable on our September 30, 2013 balance sheet, $2,133,400 of accounts receivables and $2,128,700 of inventory collateralized to Cole Taylor under this facility.

On April 26, 2005, 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 one year, after which time the facility could be terminated by either party upon 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, 2013 was $1,328,700. Account balances totaling $2,260,200 of accounts receivables collateralized to RBS under this facility are included in our balance sheet as accounts receivable at September 30, 2013.