NOTES PAYABLE RELATED PARTY - SHORT-TERM | 9 Months Ended |
|---|---|
Sep. 30, 2011 | |
| NOTES PAYABLE RELATED PARTY - SHORT-TERM |
NOTE 6—NOTES PAYABLE RELATED PARTY –
SHORT-TERM
On
July 15, 2011, Lantern Advisers, LLC, a Minnesota limited liability
company owned equally by Douglas Polinsky and Joseph A. Geraci, II
(each of whom is an officer and director of the Company), loaned
the Company $20,000 under terms and conditions set forth in an
unsecured term promissory note. The promissory note
provides for simple interest to accrue on the unpaid balance of the
promissory note at the rate of 12% per annum, and requires that
accrued interest be paid on a monthly basis until July 15, 2012, at
which time the promissory note becomes due.
On
October 19, 2010, Douglas Polinsky and Joseph A. Geraci, II, both
officers of the Company, each loaned the Company $5,000 under terms
and conditions set forth in a related unsecured term promissory
note. The promissory note provides for simple interest
to accrue on the unpaid principal balance of the promissory notes
at the rate of 12% per annum, and require that accrued interest be
paid on a monthly basis until October 18, 2011, at which time the
entire unpaid principal balance of $5,000 together with the unpaid
accrued interest of $569 (accrued at 12% per annum) became due and
payable. Messrs. Polinsky and Geraci both agreed to
renew the unsecured term promissory notes and interest payable of
$5,569 each on September 30, 2011 for a term of six
months. The promissory notes have the same terms as
those contained in the original promissory notes and have a
maturity date of March 31, 2011.
From
July 30, 2009 to July 15, 2011, Lantern Advisers, LLC, a Minnesota
limited liability company owned equally by Douglas Polinsky and
Joseph A. Geraci, II (each of whom is an officer and director of
the Company), loaned the Company a total of $150,000 under terms
and conditions set forth in unsecured term promissory notes.
The promissory notes provided for simple interest to accrue on the
unpaid principal balance of the promissory note at the rate of 12%
per annum, and required that accrued interest be paid on a monthly
basis until maturity, at which time the entire unpaid principal
balance of the promissory note became due. On September
30, 2011, Lantern Advisers and the Company consolidated these
promissory notes and the accrued but unpaid interest into a new
promissory note in the amount of $172,364. The new
promissory note has the same terms as those contained in the
original promissory notes and has a maturity date of March 31,
2012.
Total
short-term related party notes at September 30, 2011 and December
31, 2010 were $183,502 and $94,800, respectively, and provided
working capital for the Company. Total long-term related
party notes at September 30, 2011 and December 31, 2010 were $0 and
$11,200, respectively.
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