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Commitments and Contingencies
 9 Months Ended
Feb. 29, 2012
Commitments and Contingencies  
Commitments and Contingencies Disclosure [Text Block]

Note 5: Commitments and Contingencies

 

On June 10, 2011, the Company renewed the line of credit (the “Line”) with its bank which has a borrowing limit in the amount of $400,000. The Line is secured by substantially all of the Company’s assets, bears interest at 1.0% plus prime, and expired on February 24, 2012. The Company renewed this line of credit through February 24, 2013. The balance at May 31, 2011 and February 29, 2012 was zero.

 

      On February 13, 2009, the Company entered into a loan agreement with its bank for an equipment loan (“Loan”) for $133,000 at an interest rate of 6.50%. The related equipment serves as collateral for the Loan. The Loan is payable in thirty-six monthly payments of approximately $4,000. The loan payable balance at May 31, 2011 and February 29, 2012 relating to this equipment loan is $35,390 and $0, respectively.

 

On June 18, 2009, the Company entered into an agreement to lease a building in Irvine, California. The lease commenced September 1, 2009 and ends August 31, 2016.  The initial base rent was set at $18,490 per month with scheduled annual increases through the end of the lease term.