Margin Account Loan

6 Months Ended

Jun. 30, 2012

Margin Account Loan [Abstract]

Margin Account Loan

Note 9: Margin Account Loan

A "Margin Account" loan was established with Wells Fargo Advisors for which the proceeds of this flexible form of indebtedness effectively serves the Company as a line of credit to finance the capital improvement project underway at the New Brunswick, New Jersey Manufacturing facility.In order to maintain this Margin Account, established on July 26, 2011 with an estimated maximum dollar value of $6.5 million, the Company needs to pledge, restrict from sale and segregate to a dedicated Margin Account its Marketable Securities at an approximate ratio of two to one of security collateral to debt undertaken. With the exception of collateral requirements, the Company maintains all the rights and benefits of ownership including receipt of interest, dividends or proceeds from the securities. While this Margin Account has no material establishment or maintenance fees, it currently carries an effective interest rate of approximately 3.0% per annum applied against the "Margin Debit Balance" (i.e., those funds withdrawn and outstanding), based on the prevailing "Wells Fargo Base Rate" less 2.75%. At June 30, 2012, the principal loan balance of the Margin Account was approximately $4,335,000, for which approximately $7,343,000 in Marketable Securities became restricted as dedicated collateral for the indebtedness. For the six months ended June 30, 2012, the interest charge was approximately $21,000 which has been capitalized along with the other costs related to the capital improvement project (see "Note 6: Marketable Securities – Restricted").