Secured Lines of Credit

3 Months Ended

Mar. 31, 2014

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 for a period expiring in June 2016. The borrowings are collateralized, with recourse, by MBC’s and Releta’s trade receivables and inventory located in the US. This facility currently carries interest (including default interest) at a rate of prime plus 3% and is secured by substantially all of the assets of Releta and MBC. The amount outstanding on this line of credit as of March 31, 2014 was approximately $1,520,900. Included in the Company’s balance sheet as at March 31, 2014 are account balances totaling $1,627,000 of accounts receivable and $2,164,800 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 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 March 31, 2014 was approximately $632,200. Included in the Company’s balance sheet at March 31, 2014 are account balances totaling $2,250,300 of accounts receivable collateralized to RBS under this facility.