Note 10 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Text Block]

NOTE 10.   COMMITMENTS AND CONTINGENCIES

In connection with the acquisition of SRC, in December 2010, the Company recorded a performance-related contingent obligation related to a 2.5% payout payable over 42 months commencing January 1, 2010 and based upon the fair value of projected annual billings of the acquired business, and a $500 thousand fee if the market price of the Company’s common stock is not equal to or greater than $2.00 per share for at least twenty trading days between June 30, 2010 and June 30, 2013 (due on June 30, 2013).  The Company accrued for each of these contingent liabilities at their respective fair values at the time of the acquisition.  For the three months ended March 31, 2013 and 2012, the Company paid $124 thousand and $35 thousand, respectively, relating to the 2.5% payout.  At March 31, 2013 and December 31, 2012, the Company has recorded a current liability related to these contingent obligations of $626 thousand and $728 thousand, respectively, which is recorded under the caption “Accrued liabilities” in its Condensed Consolidated Balance Sheets.