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Term Note Payable and Revolving Credit Line | 9 Months Ended
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Sep. 30, 2013
Debt Disclosure [Abstract] |
Term Note Payable and Revolving Credit Line | Term Note Payable and Revolving Credit Line The following table summarizes our term note payable and revolving credit line balances as of September 30, 2013 and December 31, 2012:
|  | September 30, 2013 |  | December 31, 2012
Term note payable - 4.25 percent at September 30, 2013 (prime plus 1.0 percent), due February 10, 2016 |  | $ | 3,222,222 |  |  | $ | 4,222,222 |
Revolving credit line - 3.75 percent at September 30, 2013 (prime plus 0.5 percent), due March 29, 2015 |  | 3,175,000 |  |  | 3,600,000 |
Total |  | $ | 6,397,222 |  |  | $ | 7,822,222 |
Less: current portion |  | (1,333,333 | ) |  | (1,333,333 | )
Long-term portion |  | $ | 5,063,889 |  |  | $ | 6,488,889 |
Principal Payments: Principal payments under the term note payable are due as follows as of September 30, 2013:
2013 | $ | 333,333 |
2014 | 1,333,333 |
2015 | 1,333,333 |
2016 | 222,223 |
Total | $ | 3,222,222 |
Credit Facilities On March 1, 2012 we entered into a Business Financing Agreement with Bridge Bank. The agreement provided us with a $5 million term loan (the "Term Loan") and access to a revolving credit line of up to $10 million which we use to help satisfy our working capital needs. We have provided Bridge Bank a first priority perfected security interest in all of our accounts and personal property as collateral for the credit facility. Effective as of March 29, 2013 we agreed to a Third Business Financing Modification Agreement with Bridge Bank which, among other things, modifies our financial covenants and extends the maturity of the revolving line of credit to March 29, 2015. Term Note Payable The Term Note Payable is repayable in equal monthly installments through its maturity date of February 10, 2016. Revolving Credit Line Available funds under the revolving credit line are 80 percent of eligible accounts receivable balances plus $1 million, up to $10 million. Eligible accounts receivable is generally defined as those from United States based customers that are not more than 90 days past due. We had approximately $1.2 million in availability under the revolving credit line as of September 30, 2013. Debt Compliance The Third Business Financing Modification Agreement revised the targets for our financial covenants to an Asset Coverage Ratio, measured monthly, of not less than (i) 0.70 to 1.00 for February 2013 through May 2013, 0.80 to 1.00 for June 2013 through September 2013, 1.15 to 1.00 for October 2013 and November 2013, and 1.25 to 1.00 for December 2013 and all subsequent months; and a Debt Service Coverage Ratio, measured monthly on a trailing three month basis, of not less than 1.75 to 1.00 beginning February 28, 2013. On March 8, 2013 Bridge Bank waived an event of default that occurred in January 2013. As of September 30, 2013 we were in compliance with all terms of the credit agreement.

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