5 - LONG-TERM DEBT FROM RELATED PARTY

12 Months Ended

Dec. 31, 2012

5 - LONG-TERM DEBT FROM RELATED PARTY

Long-term debt consists of the following:

	December 31,
	2012			2011
Secured credit facility from related party	$	1,500,000		$	1,500,000
Less current portion		(1,500,000	)		-
Long-term debt, less current portion	$	-		$	1,500,000

On April 21, 2008 we entered into a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Ltd. (see Note 6). The original maturity was April 21, 2011, but on March 7, 2011, was extended to June 30, 2013. Credit is available at the rate of Prime + 0.25% per annum with the entire principal amount outstanding due at maturity.

- 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.

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