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Senior Convertible Note
6 Months Ended
Jun. 30, 2012
Debt Disclosure [Abstract]  
Senior Convertible Note

NOTE 7 — Senior Convertible Note

 

On November 19, 2010, the Company issued a senior secured convertible note having a principal amount of $1,000,000 in a private placement financing. The convertible note was recorded on the Company’s balance sheet net of the associated debt discount. During the six month period ended June 30, 2011, the holder converted in total a $225,000 principal amount plus unpaid accrued interest which resulted in the issuance of 152,830 shares of common stock. Amortization of the debt discount during the three and six months ended June 30, 2011, totaled $152,740 and $468,956, respectively, which is classified as interest expense in the Company’s Condensed Statement of Operations. Interest expense on the note principal for the three and six months ended June 30, 2011 was $19,590 and $43,619, respectively. On September 6, 2011, the remaining balance of the note was converted to common stock.