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Note 7 - Debt | 9 Months Ended
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Sep. 30, 2012
Debt Disclosure [Text Block] | NOTE 7. DEBT Credit Facilities On December 22, 2011, the Company entered into a $4.5 million revolving line of credit (“credit facility”) with Rosenthal & Rosenthal. The total loan amount available to the Company under the line of credit is equal to 85% of its net amount of eligible receivables, plus available inventory (the lesser of 50% of the lower of cost or market value of eligible inventory, or $250 thousand). The credit facility is secured by a lien on the domestic assets of the Company. The interest rate for borrowing on accounts receivable is 8.5%, on inventories 10.0% and on overdrafts 13.0%. Additionally, there is an annual 1% facility fee on the entire amount of the credit facility, $4.5 million, payable at the beginning of the year. The credit facility is a three year agreement, expiring on December 31, 2014, unless terminated sooner. There are liquidated damages if the credit facility is terminated prior to December 31, 2014, which are based on the maximum credit facility amount then in effect. The damages are: 3% if terminated prior to the first anniversary of the closing date, 2% if terminated prior to the second anniversary of the closing date, and 1% if terminated prior to the third anniversary of the closing date. The Company is required to comply with certain financial covenants, measured quarterly, including, as defined in the agreement: a tangible net worth amount and a working capital amount. The Company was in compliance with the financial covenants at September 30, 2012. Borrowings under the revolving line of credit were $1.3 million at September 30, 2012, and $701 thousand at December 31, 2011, and are recorded in the Company’s Condensed Consolidated Balance Sheets as a current liability under the caption “Credit line borrowings.” The Company maintained a British pounds sterling-denominated bank overdraft facility with Lloyds Bank Plc through its United Kingdom subsidiary in the amount of £100,000, which had been renewed on an annual basis in May. However, in May of 2012, this facility was not renewed. The interest rate on the facility at December 31, 2011 was 3.60%, and there were no borrowing against it at that time. Borrowings The components of the Company’s debt at September 30, 2012 and December 31, 2011 were as follows (in thousands):
|  | September 30, 2012 |  |  | December 31, 2011 |
Letter of Credit Agreement - Mark Plush |  | $ | 250 |  |  | $ | 250 |
Cognovit Note - Keystone Ruby, LLC |  |  | 289 |  |  |  | 325 |
Secured Subordinated Promissory Note - EF Energy Partners LLC |  |  | - |  |  |  | 287 |
Convertible Promissory Note - TLC Investments LLC |  |  | 500 |  |  |  | 500 |
Letter of Credit Agreement - John Davenport |  |  | - |  |  |  | 250 |
Letter of Credit Agreement - Quercus Trust |  |  | - |  |  |  | 300 |
Unsecured Promissory Note - Quercus Trust |  |  | 70 |  |  |  | 70 |
Discounts on long-term borrowings |  |  | (71 | ) |  |  | (172 | )
Subtotal |  |  | 1,038 |  |  |  | 1,810 |
Less: Current maturies of long-term debt |  |  | (731 | ) |  |  | (855 | )
Long-term debt |  | $ | 307 |  |  | $ | 955 |
For a full description of the Company’s debt financing, reference is made to Note 10, Debt, of the Company’s 2011 Form 10-K. Future maturities of remaining borrowings are (in thousands):
Year ending December 31, |  | Long-Term Debt |
2012 October through December |  | $ | 13 |
2013 |  |  | 804 |
2014 |  |  | 59 |
2015 |  |  | 65 |
2016 |  |  | 72 |
2017 and thereafter |  |  | 96 |
Gross long-term borrowings |  |  | 1,109 |
Less: discounts on long-term borrowings |  |  | (71 | )
Total commitment, net |  |  | 1,038 |
Less: portion classified as current |  |  | (731 | )
Long-term borrowings, net |  | $ | 307 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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