Note 6 - Bank line of credit |
6 Months Ended |
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Jun. 30, 2015 | |
| Disclosure Text Block [Abstract] | |
| Short-term Debt [Text Block] |
Note 6 – Bank line of credit
On January 17, 2014, the Company entered into a revolving line of credit agreement with Cornerstone Bank, N.A. The agreement provided for an aggregate of up to $700,000, which was increased to $900,000 on April 28, 2014, at any time outstanding pursuant to a revolving line of credit and matured on January 16, 2015. The agreement was secured by inventory, work in process, accounts receivable, a letter of credit, and was personally guaranteed by the Company’s Chief Executive Officer/President. Interest was at 6% per annum, with monthly interest payments to be paid by the Company.
As part of the agreement, the Company entered into a Letter of Credit Rights Control Agreement with F&M Bank & Trust Company. Per this agreement, if the Company were to default on the line of credit, F&M Bank & Trust Company would then be held liable to Cornerstone Bank, N.A. for the payment of the line of credit. In addition, the Company would then owe the amount disbursed to F&M Bank & Trust Company. As of June 30, 2014, the bank line of credit was fully paid and the pledged letter of credit terminated.
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