Quarterly report pursuant to Section 13 or 15(d)

COMMITMENTS AND CONTINGENT LIABILITIES

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COMMITMENTS AND CONTINGENT LIABILITIES
 6 Months Ended
Jun. 30, 2013
COMMITMENTS AND CONTINGENT LIABILITIES  
COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 7 – CONTINGENCIES AND COMMITMENTS

 

Standby Letters of Credit – A commercial bank issued standby letters of credit on behalf of the Company to the states of Texas and Kansas totaling $145,000 to allow the Company to do business in those states.  The standby letters of credit are valid until cancelled or matured and are collateralized by the revolving credit facility with the bank.  The terms of these letters of credit 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 states of Texas and Kansas. No amounts have been drawn under the standby letters of credit.