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Line of Credit and Long Term Debt (Tables)
 3 Months Ended
Mar. 31, 2014
Line of Credit and Long Term Debt [Abstract]  
Schedule of Long-term Debt

 

    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.

 
Summary of Future Repayments on Long-term Debt

 

2014   $ 949,771  
2015     1,186,309  
2016     892,443  
2017     20,187  
2018     21,432  
Thereafter     389,121  
         
Total   $ 3,459,263  

 
Schedule of Future Minimum Lease Payments for Capital Leases

 

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