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Note 15 - Subsequent Event
12 Months Ended
Dec. 31, 2012
Subsequent Events [Abstract]  
Subsequent Event

 

NOTE 15 — Subsequent Event

 

On January 31, 2013, the Company's Board of Directors approved a line of credit to be provided by its Chairman of up to $300,000. The term of the credit agreement is six months ending August 1, 2013, unless extended by both parties. Interest accrues at the rate of 1% per week and is to be paid weekly. Balances outstanding under the line of credit are to be repaid in full on or before the maturity date. Balances under the line of credit are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company's working capital bank line of credit with Silicon Valley Bank. Additionally, the Company's Board of Directors authorized management to seek up to a total of $1.0 million in capital under similar terms. The funds raised are to be used for working capital purposes. As of March 31, 2013, the Company has raised a total of $550,000 in funds under such terms, of which $300,000 and $50,000 are from the Company's Chairman and Chief Executive Officer, respectively, and $200,000 from other sources. Accrued interest as of March, 31, 2013 was $35,857.

 

In April 2013, the Company reached a settlement agreement with Telecomm Innovations LLC, holder of patents involving modem technology, whereby the Company, its suppliers and customers, are granted an irrevocable, worldwide, non-exclusive and non-transferable license to the underlying patents held by Telecomm Innovations. The settlement is not material to the Company’s operations.