Note 11 - Due to Factor
|12 Months Ended|
Dec. 31, 2015
|Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]|
|Other Liabilities Disclosure [Text Block]||
On August 6, 2013, the Company signed a one-year agreement with a financial services company for the purchase and sale of accounts receivables on a recourse basis. The financial services company commenced funding during August 2013. The financial services company advanced up to 90% of qualified customer invoices, less applicable discount fees, and held the remaining 10% as a reserve until the customer paid the financial services company. The released reserves were returned to the Company. The Company was charged 0.7% for the first thirty (30) days outstanding. As well as each subsequent month prime plus 1.75% daily for funds outstanding over thirty (30) days.
On August 21, 2014, the Company renewed this agreement which included among other changes, an elimination of the interest rate and the adoption of a Service Fee of 1.15% per month for all periods covered under the renewed agreement. Since inception, uncollectable customer invoices are charged back to the Company after ninety (90) days. The renewed agreement was scheduled to expire in August 2015.
On July 27, 2015, the Company terminated its factor agreement with the financial services company. As of December 31, 2015 and 2014, the advances from the factor, inclusive of fees, amounted to $0 and $970,541, respectively, which were offset against due from factor of $0 and $136,603, respectively. Advances from the factor were collateralized by substantially all assets of the Company.
The entire disclosure for other liabilities.
Reference 1: http://www.xbrl.org/2003/role/presentationRef