7.	Line of Credit and Long Term Debt

Commercial Loan Agreement Facility

The Company has an $8,000,000 working capital line of credit facility with Cardinal Bank. The amount available varies from month to month depending upon the amount of qualified customer accounts receivable which currently consists of up to 90% of qualified federal receivables and up to 80% of qualified commercial receivables, less any amounts outstanding on the Cardinal Bank term note. There were no changes in the terms of the credit facility during the three month period ended March 31, 2014. The line of credit facility matures on June 30, 2014. The Company was advanced approximately $3.4 million and repaid approximately $4.4 million during the three month period ended March 31, 2014. There was no outstanding balance on the credit facility at March 31, 2014.

Long-Term Debt

Long-term debt consisted of the following:

	MARCH 31,			DECEMBER 31,
	2014			2013
	(Unaudited)
Cardinal Bank Mortgage Dated December 17, 2010 (1)	$	480,433		$	484,532
Cardinal Bank Term Note Dated December 31, 2011 (2)		2,312,163			2,508,748
Non-Contingent Obligation Subordinated Seller Financed
Promissory Note Dated December 31, 2011 (3)		666,667			666,667

Total		3,459,263			3,659,947
Less: current portion		(949,771	)		(1,150,455	)

Long-term debt, net of current portion	$	2,509,492		$	2,509,492

(1) On December 17, 2010, the Company entered into a real estate purchase agreement to acquire an operations and call center facility in Columbus, Ohio for approximately $677,000. In connection with the real estate purchase agreement the Company entered into a $528,000 ten-year mortgage with Cardinal Bank to fund the unpaid portion of the purchase price. The mortgage loan bears interest at 6.0% with monthly principal and interest payments of approximately $3,800, and matures on December 17, 2020. The mortgage loan principal and interest payments are based on a twenty-year amortization with the unpaid balance due at maturity. The mortgage loan is secured by the real estate.

(2) On December 31, 2011, the Company entered into a $4,000,000 5-year term note with Cardinal Bank ("Cardinal Bank Term Note") to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. ("AGS") dated December 30, 2011. The term note bears interest at 4.5% with monthly principal and interest payments of approximately $74,694, and matures on December 30, 2016. The term note is secured under a corporate security agreement.

(3) On December 31, 2011, the Company entered into a $1.0 million subordinated 3-year term non-contingent note ("term note") with AGS to fund a portion of the purchase price paid in connection with the asset purchase agreement with AGS dated December 30, 2011. The term note bears interest at 3.0% with estimated remaining annual principal payments of $333,333 and $333,334 payable on April 15, 2014 and 2015, respectively, and matures on April 15, 2015. The Company paid the second installment due on April 15, 2014. The term note is subordinated to the Cardinal Bank Term Note.

Future estimated remaining repayments on long-term debt are as follows for fiscal years ending December 31 (unaudited):

2014	$	949,771
2015		1,186,309
2016		892,443
2017		20,187
2018		21,432
Thereafter		389,121

Total	$	3,459,263

The credit facility requires the Company to maintain certain financial covenants, including maintaining (i) a debt service ratio of at least 1.2:1.0, (ii) a tangible net worth of at least $4.5 million and (iii) a current ratio of at least 1.1:1.0. On March 3, 2014, the Company completed a public offering of common stock which immediately brought the Company into compliance with its tangible net worth and current ratio financial covenants. As of March 31, 2014, the Company was not in compliance with its debt service ratio. The Company previously obtained a waiver from its financial institution as of December 31, 2013 through December 31, 2014 for compliance with such covenants. See Note 9 for additional information regarding the Company's recent public offering.

The Company has leased certain equipment under capital lease arrangements which expire in 2016. Future minimum payments remaining under these lease agreements are as follows for fiscal years ending December 31 (unaudited):

2014	$	40,623
2015		51,464
2016		9,243
2017		-
Thereafter		-

Total		101,330
Less portion representing interest		(7,918	)
Present value of minimum lease payments under capital lease agreements		93,412
Less current portion		(34,993	)
Capital lease obligations, net of current portion	$	58,419