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Note 2 - Guarantor Factoring Agreement (Policies)
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3 Months Ended |
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Sep. 30, 2012
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| Note 2 - Significant Accounting Policies (Details): | |
| Guarantor-Factoring Agreement | Guarantor-Factoring Agreement August 1, 2011, Start Fresh Alcohol Recovery Clinic Inc. (the Clinic) entered into an agreement with a factoring company to provide a debt facility secured against the approved insurance clients of the Company. The agreement is for one year, for a maximum facility of $500,000. The facility bears a Funding fee equal to the greater of (i) the prime rate of interest plus 6.5% multiplied by the outstanding facility position, calculated monthly and (ii) $4,500 and a Collateral Management Fee equal to 1% of the factored accounts receivable. If both fees are less than $6,000 per month, then the combined fee is $6,000. Up to October 31, 2011, the aforementioned fees are capped at 50% of the greater amount. Additionally the Company is responsible for monthly maintenance fees of $350 per month and an origination fee of 3% of the facility cap or $15,000. The Company is guarantor for this facility. The security for the facility has been provided by way of a security interest against the receivables of the Clinic, a general security assignment over all of the assets of the Clinic and the Company and personal guarantees of two of the Companys directors. $80,956 and $200,956 was due to factor as of September 30, 2012 and December 31, 2011, respectively. |