Note 7 - Long-term Debt and Capital Leases

12 Months Ended

Dec. 31, 2011

7. Long-term Debt and Capital Leases

The Company enters into long-term debt and capital leases with various third parties from time to time to finance certain operational equipment and other assets used in its business operations. The Company also uses financing for acquisitions and business start ups, among other items. Generally these loans and capital leases bear interest at market rates, and are collateralized with accounts receivable, equipment and certain assets of the Company.

The table below outlines the Company’s long-term debt and capital lease obligations as of December 31, 2011 and 2010.

						Year Ending December 31,
	Interest rates			Term (months)		2011		2010
Capital leases for equipment		10 - 18	%		24 - 60	$	45,000	$	13,000
Notes Payables		2.5	%		36		2,084,000		3,750,000
Total notes payable and capital leases							2,129,000		3,763,000
Less: current maturities of long-term debt and capital leases							1,675,000		1,680,000
Non-current maturities of long term-debt and capital leases						$	454,000	$	2,083,000

The Company recorded interest expense for the long-term debt of $75,000, $91,000 and $37,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

The following is a schedule by year of future minimum principal payments required under the terms of the above long-term debt and capital lease obligations as of December 31, 2011:

2012	$	1,675,000
2013		427,000
2014		10,000
2015		11,000
2016		6,000
Total future principal payments	$	2,129,000

The Company entered into a $5.0 million term loan on March 31, 2010. Commencing April 30, 2010, the term loan is payable in 36 consecutive monthly installments consisting of $139,000 in monthly principal payments plus the unpaid interest accrued on the loan. Interest is payable at the one-month LIBOR plus 225 basis points (2.51% as of December 31, 2011).