XML 33 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Notes Payable - Related Parties
 3 Months Ended
Mar. 31, 2012
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

8. Notes Payable - Related Parties

 

On March 29, 2012, the Company issued a note payable to Ramon Shealy, a director of the Company, in the amount of $238,000, bearing interest at a rate of 10% per quarter. All principal and interest is due and payable on June 27, 2012.

Notes payable due to related parties consist of the following:

 

    March 31,     December 31,  
    2012     2011  
Note payable, bearing interest at 8.65% per annum. Principal and unpaid interest are due on January 1, 2014.   $ 157,292     $ 157,292  
Notes payable, bearing interest at 5.00% per annum. Principal and unpaid interest are due on January 1, 2014.     105,415       105,415  
Contingently convertible notes payable, bearing interest at 10% per annum. Principal and unpaid interest are due on June 1, 2012.     50,000       —  
Note payable, bearing interest at 10% for the term of the note. Principal and unpaid interest are due on June 27, 2012.     238,000       —  
 Total notes payable - related party     550,707       262,707  
Less current portion     (288,000 )     -  
Long-term portion of notes payable-related party   $ 262,707     $  262,707  

  

Future minimum principal payments of these notes payable are as follows:

 

For the Twelve Months Ended
March 31,		     Amount  
2013     $ 288,000  
2014       262,707  
Total     $ 550,707  
             

 As of March 31, 2012 and December 31, 2011, accrued interest for these notes payable-related parties amounted to $167,855 and $157,859, respectively. Of these amounts, $5,283 and $0, respectively, is reflected within accrued expenses, related parties, and $162,572 and 157,859, respectively, is reflected within other long-term liabilities-related parties on the balance sheet.

 

For the three months ended March 31, 2012 and 2011, interest expense in connection with notes payable – related parties was $5,722 and $4,930, respectively.