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Note 18 - Subsequent Events
12 Months Ended
Dec. 31, 2011
Subsequent Events [Text Block]
NOTE 18 – Subsequent Events

On March 16, 2012, effective as of March 15, 2012, we closed on the purchase of our new facility at 355 South Technology Drive, Central Islip, New York 11722 (the "Central Islip Facility"). The purchase price for the Central Islip Facility was $7,200,000 exclusive of closing costs. The transaction was structured pursuant to Section 1031 of the Internal Revenue Code, as amended, as a reverse tax deferred exchange. In order to avail ourselves of certain real estate and sales tax abatements, the purchase took the form of an assignment and lease purchase agreement with fee title continuing to be vested in the Town of Islip Industrial Development Agency.

Pursuant to the terms of an Accommodation Agreement, we entered into a loan agreement (the "Loan") with HSBC Bank USA, N.A. in the amount of $6,000,000, the proceeds of which were used to finance a portion of the purchase price. The Loan is secured by a mortgage against the Central Islip Facility. The loan is payable in 120 consecutive equal monthly installments of principal of $25,000 plus interest thereon and a final balloon payment of $3,000,000. Interest accrues on the Loan, at FAE's option, at the rate of (a) 1.75% above LIBOR, or (b) a variable rate equal to 0.5% below HSBC's prime rate. The Loan matures on March 15, 2022.

On March 16, 2012, in accordance with a stipulation dated June 17, 2010, we may now resell or otherwise dispose of the goods referred to as Idle inventories.