Quarterly report pursuant to Section 13 or 15(d)

CONTINGENCIES AND COMMITMENTS

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CONTINGENCIES AND COMMITMENTS
 9 Months Ended
Sep. 30, 2012
CONTINGENCIES AND COMMITMENTS  
CONTINGENCIES AND COMMITMENTS

NOTE 7 – CONTINGENCIES AND COMMITMENTS

 

Standby Letters of Credit – A commercial bank has issued standby letters of credit on behalf of the Company to the state of Texas totaling $50,000 to allow the Company to do business there.  The standby letters of credit are valid until cancelled or matured and are collateralized by the revolving credit facility with the bank.  These letters of credit terms are extended for a term of one year at a time.  The Company intends to renew the standby letters of credit for as long as the Company does business in the state of Texas. No amounts have been drawn under the standby letters of credit.